Lloyd’s strategy in Australia is to grow in line with the country’s gross domestic product, General Representative Adrian Humphreys told the National Insurance Brokers Association convention in Melbourne last week.

The developing world is expected to grow its share of global GDP to 70% from its present 30% by 2030.

The market’s global strategy is to position itself to take advantage of the growth of developing economies he says.

To stay profitable insurers are focusing on the risk they accept, reducing costs – as seen in Australia through outsourcing – and seeking growth in markets such as China, India and South America.

Mr Humphreys believes premium rates will continue to fall as new capital flows into insurance, and it will take “something monumental to blow the capital out of the market”.

At the same time, insurers’ regulatory costs are rising. He says Lloyd’s has so far spent $US500 million preparing for Solvency II.