Levene: Lloyd's wants more French business

Speaking on the first day of the three day conference of risk managers and professionals in Deauville, France, Levene said that the Lloyd’s market had much to offer the French market. 

Levene said, “We think we can play a greater role, whether you need specialised underwriting knowledge for risks such as terrorism or business continuity, or whether you want an insurer which has a good reputation for paying claims.” 

He added that Lloyd’s capital strength and financial ratings make the market an attractive choice. 

Lord Levene also spoke to a wider theme of his vision for the next five years for the insurance and reinsurance industry, which was the subject of a session he participated in during the conference.

“My vision for the European insurance industry’s next five years is that we have the tools and structures which allow us to thrive in an increasingly competitive world. That we can exploit the opportunities of globalisation and not be overwhelmed by them.”

Levene warned that the rise of China as the world’s second largest economy was a reality that European insurers needed to acknowledge if they are to stay competitive.  “It imports more fine wines from Bordeaux than Germany,” he quipped. 

“The potential of the market is huge,” he said.  “To take one sector: aviation. China wants to have 3,500 new planes in the next 20 years. To put that in perspective, it is equivalent to 14 new Air Frances setting up. China represents an opportunity for the mature, and talented, European insurance companies.”

Levene also said that China’s emergence requires the European insurance industry to closely examine its regulatory structure.  “Europe in particular needs to guard against imposing excessive regulatory burdens which make us less competitive than other continents... The central aim for European politicians is not regulation, but growth, and I would like to see policies which allow us to compete,” he said.

He added, “I want to see better regulation, not more regulation.” 

Levene emphasised the global nature of the insurance industry, saying that recent political volatility and also the financial crisis demonstrate that “globalisation carries risks as well as rewards.”  At the same time, he said, “The instability on the Southern shores of the Mediterranean is a reminder to European business of how dependent we are on global trade flows.”

The French market is the second largest source of revenue for Lloyd's in Europe, generating turnover in 2008 of over 500 million Euros, divided between direct insurance and reinsurance.

In France, Lloyd's is best known as the market for large risks, marine, space and aviation, but is also very active in property and casualty insurance.

Comments

No comments