Axa CEO Henri de Castries says he’s enthusiastic about the insurance industry’s ability to innovate and maintain tight technical management of underwriting, claims and investment.

Speaking at the UK Chartered Insurance Institute conference in Birmingham, he said stressed the industry must become more productive, provide better service and revamp distribution.

Referring to the tough times the industry has experienced over the past few years, Mr de Castries said the fundamentals of the industry have been reinforced. 

“Consumers are much more aware of the risks than before,” he said. “They are more ready than before to pay a decent price, and more ready than before to take the right prevention measures.

“Because the industry has suffered and lost capital, it’s no longer the victim of its own excess capital. When there was too much capital, a lot of players were ready to underwrite anything at any return because they felt safe whatever happened. The fact that now capital is scarce and therefore more expensive makes the players much more rational. It’s back to basics.”

And the Axa chief is a fan of the global push for tighter regulation of financial services. “Regulation, when it’s well done, is a barrier to entry for the inefficient players or the players who don’t have the standards and ethics you would like. Regulation is a necessity. When you are well managed it shouldn’t be an obstacle.”