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Lloyd’s chairman predicts decade of growth

Lloyd’s Chairman John Nelson has delivered an upbeat forecast for the international insurance and reinsurance market.

He told the recent Bermuda Monetary Authority Insurance Seminar the market will grow to $US2 trillion in about a decade from $US600 billion ($722.01 billion) currently.

“I believe the future facing London and Bermuda – indeed the industry as a whole – is a bright one,” he told about 400 delegates. “We have a truly extraordinary opportunity over the next decade.”

Mr Nelson says new markets represent change and opportunity.

“The emergence of these new markets in seriously underinsured economies such as southeast Asia, South America, China, Brazil and India is undoubtedly changing the landscape. What an opportunity this presents, and this is just the beginning.

“It’s important for us all to remember that our industry has weathered changes before – and we most certainly must do it again.”

Mr Nelson expressed concern about the rising incidence of protectionism in Asia.

“Economies thrive when markets are open. Protecting domestic economies doesn’t work, no more so in insurance, where in the longer term diversifying risk outside a country is good economics.”

The seminar, themed Understanding the New Normal in Insurance and Reinsurance, was opened by Bermudan Finance Minister Grant Gibbons, who described the North Atlantic territory as “the risk capital of the world”.