Lloyd’s CEO Richard Ward says the industry needs to rise to the challenge and not rest on its laurels and “reflect on our glorious past”.

Speaking at the UK Insurance and Financial Services Conference in Glasgow last week, he said Lloyd’s is undoubtedly successful but there are several issues affecting the entire industry. “Every organisation faces challenges – what’s important is how you recognise and deal with them.”

Mr Ward says New York Attorney-General Eliot Spitzer’s investigations into the industry served as a wake-up call to the sector.

“His investigations highlighted the lack of transparency in the industry’s workings and showed just how far our industry’s practices lagged behind what a 21st century business environment expects.

“With the industry reputation at an all-time low, there has never been a greater need to improve the level of service to our customers and the clarity of our business processes.”

Mr Ward says the industry is fiercely competitive with capital, and although it isn’t afraid of competition, “it is at our peril that we underestimate it”.

He says the February closure of Kinnect, a £70 million ($176 million) data transfer hub owned by Lloyd’s, “highlights the need for the industry to examine how it uses technology to support market processes”.

“We cannot expect to solve all of the challenges that we face instantly. It’s like the old saying about the best way to eat an elephant – with a teaspoon. Much easier than trying to eat it in one go.”