Pat Gallagher, Chairman, President and CEO of Arthur J Gallagher & Co. visited Lloyd’s last week, and spoke in glowing terms about its accomplishments. All of which Lloyd’s duly noted in an article on its web site (www.lloyds.com).
He noted: “Lloyd’s is hugely important to the global insurance industry. When you look at what it has achieved since it undertook its reconstruction and renewal and the arrival of corporate capital in to the market it is an example of how the industry has driven the levels of professionalism to the benefit of its clients. When you think of Lloyd’s you think of a market which has tremendous expertise and continues to be willing to take risks that others will not.”
Gallagher also stressed that the increasing globalization of the world’s economy had changed the way the market needed to operate and that the insurance and reinsurance market’s response had been led by Lloyd’s. “You see Lloyd’s with operations in the US, Asia and more recently Brazil,” he stated. “We as an industry have to appreciate that we have to be where our clients are. Yes you can sit at a box in Lloyd’s and you will see business but you will not see it all. We need to be where the business is based and that is why we are seeing the establishment of regional operations.”
He also observed: “Brokers remain the salesmen and the marketing arm of the insurance and reinsurance markets. In the vast majority of the commercial insurance and reinsurance sector we sell the products to the clients.”
Gallagher also called for further transparency on the part of the brokerage community. He noted that his firm, the fourth largest in the U.S., has “told our clients since January 1 2006 exactly how much we earn and we have found that they appreciate the transparency we provide and accept the rate we charge for the added value we bring to them in the process.”
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