QQ7 / Istockphoto.com
The London Market, along with its flagship Lloyd’s, is falling behind in the important high-growth Asian insurance market as well as in major emerging markets such as Latin America.
As a result, in order to capture growth in emerging markets, Lloyd’s may need to boost its primary insurance as well as expand its local capabilities.
"Multinational insurers are not buying as much reinsurance as they used to," says Steve Jackson, partner at Rainmaker International, a Brokerslink specialty member. Jackson believes that a reliance on reinsurance licenses in emerging markets will hinder future growth.
Many large insurers have developed a strong position in emerging markets. This enables them to reinsure a larger share of the business among their regional units. If AIG in Mexico can reinsure the risk internally with AIG New York, the company can reduce its overall reinsurance purchase.
Lloyd's, London Market, Emerging Markets, Swiss Re, Berkshire Hathaway, Growth, Asia, Latin America, Steve Jackson, Scott Farley, Nicolas Aubert