Engagement key to ward off damaging shake-up, says Lloyd’s CEO
Lloyd’s chief executive Richard Ward has warned global reinsurance markets that they must engage with regulators in order to ward off potentially damaging reforms.
In his keynote speech at PricewaterhouseCoopers’ breakfast briefing at the annual Monte Carlo Reinsurance Rendez-vous, Ward called for his counterparts to ensure that the industry is not inappropriately or unfairly hit by new regulations.
He said this involved engaging with regulators as they craft the rules that will govern the financial services industry in the future.
Ward said: “We are at a critical point. Regulators are in the process of implementing significant changes and the industry needs to continue to engage with them constructively. That is the only way we can seek to ensure that the outcomes are appropriate for our business.
“The insurance industry has navigated the global crisis well. We are not the banking sector, and we need to continue to show leadership in reminding governments of the positive role we play. These are points that the industry has been making throughout the post-crisis period but we need to keep making them.”
PricewaterhouseCoopers London insurance market leader Gavin Phillips said: “The need to engage with the regulatory debate to ensure the scope of regulation is appropriate is undeniable. But regulation is only part of the equation, the London market also needs to be mindful of other threats to its leading position, such as talent attrition, geographic shifts in economic power and competition from lower tax jurisdictions.
“The London market needs to work collectively to stress its distinctiveness and its contribution to the UK and global economies if it is to remain the most attractive insurance centre.”
