Allianz Cornell managing director Andrew Torrance told delegates at Strategy 2002 that the skills shortage in the industry needs addressing.
Allianz Cornhill managing director Andrew Torrance told delegates at Strategy 2002 that the skills shortage in the industry needed addressing.
"There is a worry over the number of people who can actually write risks properly," he said.
He added that current "mis-rating" was driving the disproportionate rate rises seen over recent years.
"We need to be more serious about investment in our people," he said.
He asked delegates: "Are we really getting the correct calibre of people? Have we also lost out on the growth in tertiary education by failing to attract the best minds to our industry?"
Torrance called on delegates to pursue a rigorous marketing drive to make the industry more attractive.
"The challenge is to prevent the industry losing any more money through bad underwriting."
Torrance also called on the industry to improve current combined ratios.
"For too many years insurers have not been fully aware of the growing equity markets," he said.
He suggested this was adressed by utilising broker expertise.
He said: "We are now in an environment where combined ratios need to be balanced.
"Underwriters are increasingly looking at delivering this, because unless we have these ratios we can not deliver insurance levels.
"Indeed rates are on the increase, but only by around 50% on average.
"These rate rises are reasonable if you consider the amount of money we have lost on EL since 1995.
"We need these rate rises to cover our increasing exposures.
"Our re-underwriting has been looking at addressing our risks with one swoop. We must do this quickly and regain capital - without this capital the industry will suffer."
