Lloyd’s Chairman Lord Levene has urged insurers operating in advanced economies to lift their game if they are to keep pace with the rest of the developing world.

He told diners at the Lloyd’s annual City Dinner in London last week that the market’s future success is under threat by competition from other markets, particularly offshore centres with tax regimes that are attractive to insurers.

“The whole of Asia is set on marching up the hill while we seem to be sliding down,” he said. “The balance of power in the world has truly shifted and we have to rapidly wake up to that.”

Lord Levene says with the market now threatened by major Atlantic hurricanes, the industry needs to raise rates to a sustainable level so that they can continue to pay out whatever damage is caused.

“I am still amazed at the industry’s collective madness in not maintaining prices at economic levels,” he said.