Insurance industry at a crossroads: Beale
The insurance industry is at a crossroads which could lead to vast opportunities, according to Inga Beale, chief executive officer of Lloyd’s.
Speaking at MultaQa Qatar 2015, Beale explained that there were plentiful opportunities for Lloyd’s to grow business globally, develop innovative products and reinforce its position in the market.
“However, this is not a nice to do. It’s a must do, an approach we must take if we are to survive and prosper. How we take advantage of these opportunities is at the heart of Lloyd’s vision,” she said. “Organisations do not survive by being rigid and traditional. Lloyd’s is adapting positively to change.
Beale also reaffirmed Lloyd’s commitment to the Middle East and North Africa (MENA) region and added that Lloyd’s wants to be ‘the’ market of choice.
“If Lloyd’s is going to grow in different economies, our market needs people who speak the language. The establishment of a Lloyd’s platform in Dubai is another great example of how we are delivering on our objectives,” said Beale
She added that the oil and gas sector in the Gulf Region, with an estimated $73 billion of gas developments in the tendering process, had levels of investment in the $1 trillion range over the past ten years and $2 trillion of investment is anticipated over the next ten years.
According to Beale, the region will face complex risks which require innovative and flexible solutions, something Lloyd’s is renowned for.
Two of these emerging issues are renewable energy and cyber. The MENA region is at the centre of the debate around sustainable and clean energy with Saudi Arabia building solar stations in five regions and Qatar exploring solar power on the countries rail network.
She said risk management in this area requires a tailored approach that Lloyd’s can help with. On cyber risk, Beale explained that the strong growth of the economy in the region unfortunately means the risk of cyber attacks is growing.
Beale also added that the Lloyd’s syndicate structure has many similarities with the takaful model, although it is not fully compatible yet. While Saudi is likely to be the core market for takaful, commanding half of contributions to the capital, Qatar will continue to set the pace for development in the region, she said.
In conclusion she said: “The Lloyd’s market has constantly risen to major challenges, and has not just overcome them but turned them into significant opportunities,” Beale said. “I’m sure that it will be tough and we will have to deal with challenging times ahead, but working together we can turn these challenges we face into opportunity.”
