Bronek Masojada, chief executive of Hiscox, says that conditions on the Lloyd’s London insurance market are reminiscent of the 1990s. Those of us who remember Lime Street back then may find this hard to believe, but conditions are undeniably tough.
The trouble is that there hasn’t been enough trouble. The catastrophe market, in particular, has not had to deal with any significant events, barring perhaps localised difficulties such as the UK floods, for several years. Given the lack of returns elsewhere, this has tempted other sources of capital into what looks an attractive market and has forced down rates.
Sensible insurers, such as Hiscox, which has a strong record for riding out tough conditions in the markets, therefore have to become more careful in