Meanwhile, back in Bermuda, Jacques Blondeau, Chairman of French reinsurance giant Scor, told the conference that insurers must “face reality” in the current market. Even though rates have gone up in the wake of September 11, “the industry is only where it should have been a few years ago”. The returns from post-September 11 premium hikes have not reached the heights the reinsurers expected, with many of the new start-ups in Bermuda cashing in. 

Mr Blondeau, who represented European reinsurers, said about $50 billion in capacity has been redirected to the insurance and reinsurance market since the terrorist attacks. 0f that, $13 billion went to new insurers and Bermuda reinsurers. 

Industry leaders at the conference said the present pricing conditions are the most favourable they have seen in the past five or six years.