A central issue, as he sees it, is how London remains a centre of excellence for (re)insurance worldwide and in-so-doing fends off the challenge posed by hubs such as Singapore and Bermuda. One avenue to do so lies in innovation and attracting leading talent to the insurance sector in London and more must be done to appeal to today’s graduates. Another lies in working with government to take risk of its balance sheet.
Moving on to where the opportunities for (re)insurance companies lie, Julian asked how can the insurance industry increase its share of voice with government and how can regulators better support the necessary innovation in the sector.
Julian then looked at the issue of cyber and other uninsurable perils, such as pandemic and climate change and what can be learned from disaster risk financing models from around the world, suggesting that the most efficient means of optimising catastrophe risk is a combination of factors.
His presentation at the Thomson Reuters Practical Law Conference concluded by looking at the myriad challenges which the insurance industry faces:
• The need to strike a balance between cost cutting and innovation
• Brokers and insurers need to take advantage of technology to reduce overall expenses and share the savings with customers
• Delivering more perceived better value will ultimately spur more demand: if the industry does not do it for itself, somebody else will do it for it
• The challenges presented by regulation and whether the solvency burden is so great that is discourages innovation
• The difficulties posed by today’s investment environment
• The growing influence of emerging markets on the global marketplace and the issues in realising the opportunities which they present.