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It’s insurance, Jim - but not as we know it!

There must be something wrong with the world when Cristiano Ronaldo’s legs are valued at 144 times the Titanic!  On 15 November the Economist reported the problems with the London insurance market.  Albeit that the insurance sector takes up 21% of the City’s economy, employing 48,000 people, there are dark clouds on the horizon.  On November 10th The London Market Group and Boston Consulting Group published a study asserting that London’s dominant position is under threat.  The report reckons that as much as 40% of London’s current business is now at risk of going elsewhere.  Other markets such as Bermuda and Singapore are growing much faster and the unreformed London market is losing out.

Apparently the biggest problem is finding solutions for new types of commercial risk.  The insurance industry has failed to keep up with changing business needs to such an extent that some CEOs say 90% of their corporate risks are currently uninsurable.

We view things differently. You see, having insurance is like procuring that when you crash into the lamppost you are (fairly) sure to have an ambulance there to haul you off to hospital.  We view things differently: better to employ all means to ensure that you do not hit the lamppost in the first place!

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