LONDON--(BUSINESS WIRE)--The Chairman of ACE European Group, Andrew Kendrick, today told London’s insurance industry that it must avoid complacency and reinforce its position as the global centre for insurance through innovation, collaboration and recognition of the shift towards emerging markets.
Speaking to over 300 senior managers from the London insurance market at the Xchanging London Market Conference, Andrew Kendrick highlighted the change in the centre of gravity of the world economy. He stressed that the London insurance market must look further afield for opportunities as the source of insurance activity shifts and as emerging financial centres in Asia and the Middle East continue to rise up the rankings.
“One thing I haven’t seen a great deal of, over the last 34 years, is long-term vision... and that’s why I’m excited by Lloyd’s Vision 2025. It’s really encouraging to see the future direction of the market set out over a ten to 15 year period… We should adopt this as the blueprint for London”, he said.
Noting that four of the world’s top ten financial centres are now to be found in the Asia Pacific region (according to the Global Financial Centres Index1), Andrew advised that insurers must not rest on their laurels and expect new business to come to them but look towards emerging markets, offering advice and best practice to create mutually beneficial partnerships that will serve London well in the future.
He continued: “London is in a very privileged position to influence and shape the future. No other insurance centre has the same ability to help emerging insurance markets develop the right frameworks, standards and skills to support their future development.”
During his speech, Andrew emphasised the need for more innovation to meet new risk challenges and highlighted London’s ability to take the lead due to its unique mix of skills and expertise. “Innovation is one of London’s great historical strengths”, he said, and “if the collective expertise exists anywhere to find solutions to our emerging risk challenges, then it is here.” In particular, Andrew suggested that London could position itself as the “recognised global centre for cyber insurance” due to its collective expertise not only in underwriting and broking but in the legal sector too.
In his final piece of advice for the market, Andrew said that London must adopt a “mindset of collaboration” to unlock greater value for clients and demonstrate the relevance of insurance today. “The insurance industry has much value to add value beyond underwriting,” he explained, adding that “London has re-emerged as the undisputed centre of global insurance broking”. Emphasising the importance of a three-way partnership between insurers, brokers and clients, he said: “Brokers have always been central to London’s success… they can, without any question, help to keep our industry – and London – relevant.”
In summarising, Andrew said: “If London is to be the global standard setter, a leading innovator, and a trusted partner for the world’s emerging markets, it cannot rest…The challenges are real, but I believe the opportunity for London to reclaim its rightful leadership place has never been clearer.”
A full transcript of the speech is available on the ACE European Group website at www.acegroup.com/eu
The ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 53 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients.
ACE Limited, the parent company of the ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index.
1 Global Financial Centres Index 12, September 2012
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