Lord Levene: "City is key to recovery"

An unprecedented number of leaders from the insurance, banking, political, regulatory and even charitable sectors braved the weather to hear the Chairman of Lloyd’s, Lord Levene, and the Chancellor of the Exchequer, George Osborne, outline their visions for future economic growth.

Diverse attendance

Ambassadors from as far afield as Kuwait, China and New Zealand were found deep in discussion with international business editors, while business leaders from many of Britain’s largest companies exchanged political gossip with members of the House of Lords.

While the promise of a speech by the Chancellor of the Exchequer was clearly a major draw, Lord Levene expressed the hope that the record attendance was also a sign that the financial services industry was once again poised to become a source of pride for commentators and politicians on all sides.

In his last year as Lloyd’s Chairman, Lord Levene used his keynote speech to caution against the level of risk aversion in the European economy. He urged George Osborne and the Shadow Chancellor Ed Balls to find the right regulatory balance between risk and safety, or risk a haemorrhaging of business out of London.

Exodus risk

Arguing that the ‘self imposed flagellation’ of the financial services industry risked an exodus of City businesses in the search for global competitiveness, he warned: “We run a free market and if London is not allowed to march forward as it should, it won’t be Lloyd’s that suffers, but it will be London.”

Drawing on the latest GDP figures which showed that the output of business services and finance have grown by nearly £20bn in the last five years, he called on politicians of all parties to concentrate on using this growth as a springboard to economic recovery.

Balancing act

Lord Levene also underlined the wider economic benefits of achieving the right balance between risk and safety. He revealed that while the Lloyd’s market has made £19bn since 2002, in that time it has paid out over £91bn in claims – more than the UK’s annual education budget and a significant contribution to the sustainability of businesses and communities when disaster strikes.

In his speech, George Osborne paid tribute to the achievements of Lord Levene during his nine year Chairmanship of the ‘historic institution’ of Lloyd’s which “had helped it regain its place as the world’s leading insurance market.”

The Chancellor also reminded his audience that the City of London was about much more than just banking. “It is also a global centre of excellence in insurance, fund management, legal services, shipping and many other dynamic financial industries,” he said.

Despite the tough first six months the insurance industry has experienced this year, the 2011 Lloyd’s City Dinner gave the City a welcome affirmation that, in these difficult economic times, its importance as a force for national growth and sustainability was more vital than ever.