Nobody enjoys buying insurance — but it underpins the global economy, Catlin Group boss Stephen Catlin said in a speech in London this week.

After his investiture as president of the Insurance Institute of London for 2010-11, Mr. Catlin also warned of the dangers of cut-throat competition within the industry and added that banks could learn a thing or two from insurers.

"Let's face it: the world nowadays couldn't go around without insurance," Mr. Catlin said. "Airlines could not take to the sky … cars would be taken off the road … and skyscrapers could not be built. Commerce as we know it would break down.

"Therefore, we, as insurers and brokers, must constantly remember that we are providing a very important and valuable product, and we should be proud of that."

The chief executive officer of Bermuda-based Catlin, which is one of the biggest participants in the Lloyd's of London market, added: "Without insurance, the rebuilding of lower Manhattan would likely not be taking place, nearly a decade after the tragedy of 9/11.

"The City of New Orleans would not have recovered nearly as quickly from the ill winds of Hurricane Katrina five years ago. And, without insurance, it would take much longer for Chile to rebuild following the devastating earthquake earlier this year."

He also took issue with the perception that insurance was a poor relation of the banking industry.

"During the economic crisis, the banking industry largely failed their clients, and many of the top players would not have survived without government intervention," Mr. Catlin said.

"On the other hand, the insurance industry — with only a few exceptions — continued to provide value to its customers without the need of government support. And, the problems encountered in our industry did not generally arise from insurance underwriting but when some insurers deviated from their core operations.

"Now, I strongly believe that banks can learn much from insurers, rather than the other way around."

Nevertheless, it was more important for insurers to learn from their mistakes than to reflect on their successes, he added.

"If we are to continue to succeed, we must be ever mindful of the sins of the past — especially cut-throat competition that lowers our rates below the level at which a fair profit is sustainable," Mr. Catlin said. " I think that is food for thought at this stage of the market cycle."

The Insurance Institute of London, which has 16,000 members, provides insurance education and professional development through its lecture and visits programmes, its journal and its research studies scheme.