We are trusting London to give us a lead says Tokio Marine reinsurer.

(From Lloyds List)

Byline: Tokyo is putting its faith in the London market, but Japanese insurers say it is vital for the UK hub to maintain quality service, writes James Brewer

LONDON insurance market input will be vital to support the growth of the Japanese insurance market, according to Takashi Oka, leader of the reinsurance group commercial lines underwriting department at Tokio Marine ' Nichido Fire Insurance Co.

Mr Oka told a meeting at Lloyd's organised by the Insurance Institute of London that the Japanese non-life insurance market, which accepted $82bn in net written premium in 2004, was expected to grow in line with gross domestic product.

In Japan, the top five insurance groups already had a market share of 82.5%, so for the next five years, instead of mergers and acquisitions, each company would stress the accomplishment of integration, said Mr Oka. 'We shall need new products for growth, and that is where the London market can help us, both in development of products and supply of reinsurance capacity.Looking globally, we also expect to expand in the field of global insurance and reinsurance.

'We shall also expand on the financial services side as well as asset management, so we may find new areas of co-operation.'

Other areas for London support included risk consulting, said Mr Oka, who returned to his home country in August after seven years in London, during which he became the first board member from outside Europe and the Americas at the International Underwriting Association.