Insurers have been put on notice to fulfill their role as carriers of risk or be replaced in an evolving industry.

The warning came yesterday from former Lloyd’s chairman Max Taylor, who accused the insurers of withdrawing from volatile, complex risk and multi-line and multi-year programs.

Mr Taylor, who is now Deputy Chairman of Aon Limited, was speaking at the opening of the third Singapore International Insurance Brokers Conference. “There is a serious disconnect between buyers and sellers of insurance,” he said. “There is a risk that the initial acceptance by clients of rising rates is being taken by the carriers as acquiescence.

“I thought we might have learned some lessons from previous sharp upturns.”

Swiss Re has said the market is in danger of “overshooting” in rates, Mr Taylor said. Ironically, as premiums go up the quality of the risk improves. “This is leading risk managers to ask why they need a primary insurer at all,” Mr Taylor said.