Lloyd’s underwriters see pricing as top client concern

Underwriters at Lloyd’s say pricing is the top buyer concern, not the current investigations into broker contingent commissions and other industry practices.
In a survey taken by Lloyd’s of its member underwriters, 84% see pricing as the main issue on clients’ minds, while only 4% point to the current investigations spurred by New York Attorney General Eliot Spitzer as the key concern for buyers.
And from an industry perspective, underwriters believe “managing the cycle” is the biggest challenging, with about 44% saying this tops the list. Another chief concern is contract certainty, with transparency and disclosure ranking third.
The important being place on cycle management is a positive finding, says Julian James, director of global markets for Lloyd’s. “Given Lloyd’s emphasis on the discipline needed to deliver an underwriting profit, it is reassuring that underwriters in the market see managing the cycle as the single most important issue for the industry.”
Interestingly, underwriters generally see the industry’s public image is good, despite the current investigations, with just 32% saying insurers’ reputation is poor.
Underwriters point to China as the biggest market for industry growth potential. James says this confirms why Lloyd’s is working to secure an onshore reinsurance license in China. The U.S. also placed high, along with central and eastern Europe. Canada finished far down on the list, below India and the Middle East.
Among the other questions posed by the survey, the group likely to have the most impact on the industry this year is regulators, with Lloyd’s underwriters split on whether this impact would be positive or negative.