Lloyd’s Chairman Addresses Current Concerns

An article on the Lloyd’s of London web site (www.lloyds.com) notes that “Lloyd’s Chairman Lord Levene visited Germany last week to speak with insurance and business leaders, as well as the media, on topics ranging from the threat posed by Swine flu to insurance strategies during the global downturn.”

During his visit he “spoke to Bloomberg about a global economic recovery, the outlook for the insurance industry, emerging risks—such as swine flu—and the strength of Lloyd’s.”

In his speech at Munich University’s Chair of Insurance Services, entitled “Key challenges for the insurance and reinsurance sector in a difficult economic climate,” he analyzed the insurance sector’s position relative to the economic crisis, and spoke about the risks posed by climate change, terrorism, political instability, and corporate liability.

“The insurance industry is in good shape, despite the shadow of recession, and Lloyd’s remains stable and secure,” he stated, but he also sounded a note of caution to be prepared for “more bad news before things get better.”

Levene spoke of “redundancies [job cuts/layoffs], cutbacks, insolvencies,” noting that “this is hardly our golden age.” He outlined the priorities for the next few years, stressing that “the industry must ‘get back to basics’ and get regulation right.”

He added, however that the “whole financial sector is not some house of cards destined to fall, and the insurance industry is relatively well placed to weather recession,” and he stressed that “insurance is an economic necessity, not a discretionary purchase.”

To view the full text of Lord Levene’s address go to: http://www.lloyds.com/News_Centre/Speeches/key_challenges_for_the_insurance_and_reinsurance_sector_in_a_difficult_economic_climate.htm

Source: Lloyd’s of London