London’s position in the global market is under threat, according to new London Market Group (LMG) Chairman Steve Hearn.

Mr Hearn, who is also Deputy CEO of Willis, says the LMG will expand its remit to address issues facing the city.

“At its best, this market provides a unique and unrivalled service to our customers,” he said while launching the LMG’s annual agenda at the Willis Auditorium last week.

“We provide solutions to their problems in a way that no other insurance centre or capital market can do. We provide help when they most need it.

“But there is increasing evidence that London’s position in the global industry is slipping.

“So I want to use the unique cross-market vehicle that the LMG is to understand why that is, to understand our customers’ needs better and then do something about the issues we have.”

In 2007 16% of Willis’ premium came into Lloyd’s, but the figure has now dropped below 10%, Mr Hearn says.

While insurance is increasingly “a global game”, a centre of excellence for complex requirements is necessary.

“If there were no London market, the global industry would have to reinvent it, because without that sort of facility we would be unable to meet the full scope of our clients’ demand.”

A series of initiatives have been identified, Mr Hearn says. They include developing talent and promoting diversity, co-ordinating a common voice for the market in dealings with governments and regulators, and commissioning customer research.

“Together, we can get to work and progress the agenda I have outlined. That will result in a London market reinforced in the position where it belongs – the pre-eminent insurance centre in the world.”