How the industry responds to Hurricane Katrina, approaches contract certainty, achieves transparency and addresses contingent commissions are four key defining moments, says Willis Group Chairman and CEO Joe Plumeri.

Speaking at PricewaterhouseCoopers’ breakfast briefing at the Reinsurance Rendezvous in Monte Carlo, Mr Plumeri called on the industry to recognise the confluence of events impacting on the industry as “our defining moment”.

He says industry needs a permanent solution to terrorism risk. It should also deal with issues related to enhanced technology and strict compliance in the placement process – including “solid, impenetrable Chinese walls between primary and reinsurance brokers”.

Mr Plumeri praised New York Attorney-General Eliot Spitzer for raising some serious issues, but warned that the regulators shouldn’t be setting the pace. “Moving the industry forward is more about taking collective responsibility for reforming and even revolutionising it.”

“The greatness of people and industries is measured by how they react to the circumstances put before them,” he said. “How we react – collectively – whether we revolutionise our practices or support the status quo – will foretell our future. If we build on our rich traditions, history will be our springboard; if we rest on our traditions, history will be our jailer.”

Referring to insurance as the DNA of capitalism, Mr Plumeri said the industry has a “responsibility as the grease of the economic engine to accept the accountability that goes along with our role. That means being progressive and making this our finest hour.”