Bermuda Insurance Symposium II delegate.

"The market will take up the capacity,'' said Alexander and Alexander of New York senior vice president Mr. Thomas Caldwell Jr.

Though he played devil's advocate by discussing why capacity might be absorbed and why a new cycle might emerge, he said his opinion supports the former.

"Many moderate to high risk company's do not buy enough high risk insurance,'' said Mr. Caldwell, whose risk management career spans 25 years.

Mr. Caldwell, former Corporate Insurance American Cyanamid director, was one of four insurance industry leaders speaking at the final symposium session at Marriott's Castle Harbour Resort.

He is a former EXEL Ltd. director and a former director of Risk Management of American Cyanamid Company.

The additional capacity could lead to additional demand and not price cutting, Mr. Caldwell said.

But companies offering three-year policies could cut down on competition, he said.

"Diversification could lead to a negative impact on the bottom line and lead to reduced premiums to get a bigger share of the market,'' Mr. Caldwell added.

But ACE chairman, president and CEO Mr. Brian Duperreault said "when we expand the products are complementary to the core business''.

He agreed with Mr. Caldwell that some company's should be buying more coverage.

"There are companies with a great deal of limits needed to be purchased,'' he said.

"I only remember a couple of instances where there was not competition.

Competition is a natural state of affairs in the insurance business and we will remain competitive,'' said Mr. Duperreault.

The excess liability market though calm is competitive while the D&O market has become "frenetic'' with competition amid overcapacity, said X.L.

Insurance president and CEO Mr. Brian O'Hara.

In the current environment, losses are growing and there is little hope of tort reform, he said.

Mr. O'Hara moderated the panel presentation on excess liability and D&O.

"The history of casualty underwriting over the past forty years has been one of shifting predominance, Lloyd's has remained a significant player throughout,'' said Janson Green Ltd. underwriter Mr. Richard Youell, also a excess liability panelist.

"It is impossible not to be infected with the confidence and enthusiasm of David Rowland.'' Lloyd's Chairman Mr. Rowland spoke Thursday at the symposium.

The majority of Lloyd's lost casualty business resides in Bermuda with a main factor being price, he said. Despite the possibility of growing demand or of new cycle, the services we provide is still and essential service, said Mr.

Youell.

"The evil that men have done will live long after them.'' There are still big capacity buyers and the new capacity is real competition for Bermuda, said Bowring (Bermuda) managing director Ms Fiona Luck whose insurance career has spanned 12 years in Bermuda.

Discussing the US and European picture, she said insurers have seen three consecutive years with declining investment income.

When asked how much capitalisation a new insurer would need to fill the capacity gap, Ms Luck said when Chubb came to Bermuda they found some brokers would be uncomfortable with the company unless it was capitalised to $100 million, an amount it fulfilled.

Ms Luck, also on the excess liability panel, joined Marsh McLennan's captive management subsidiary in 1983.