Lloyd’s survey finds managing the cycle as top challenge for industry

Managing the cycle, containing operating costs and improving efficiency and increasing regulatory burden were the three largest concerns weighing on the minds of Lloyds underwriters, according to the companys third annual survey.In total, 116 underwriters from a large number of syndicates were interviewed at random in the Lloyds underwriting room, and for the third year in a row, managing the cycle was cited as the top challenge for the industry. Two-thirds of the underwriters interviewed stated that they noticed progress in this area, an increase on 2006 when slightly more than a quarter stated they had noticed progress. While 67% of respondents believed that climate change also poses a major challenge for the insurance industry with nearly half of respondents believing that insurance buyers are ill-prepared for the impact climate change will have on their businesses, 32% believe that the impact has been grossly exaggerated.Risk categories expected to show the highest growth in premium income in 2007 were listed as terrorism and political risk (32%); energy (27%); property (26%); and director and officer (25%).