As the insurance industry moves to access more of the multi-trillion dollar securities market, it will be met with strong competition from investment banks, according to the chairman and CEO of insurance broker Minet Group.

"I believe the insurance industry will be challenged to finds ways to access the trillions of dollars of investment money,'' Mr. Peter Christie said Friday at the Hawksmere/Coopers & Lybrand Ninth Annual International Reinsurance Congress.

There will be "strong'' competition for investment capital from investment banks, he said.

But this competition could lead to mergers between insurance broking firms and investment banks, he noted.

"Brokers have the advantage of focusing on risk needs while investment banks know where the capital is,'' he said.

Speaking about the future of insurance broking, Mr. Christie said lack of a global strategy, regulation and tradition could hinder the development of global broking networks.

Brokers have a strong "local identity,'' he said.

But, in future, underwriting will become more technical, he said.

"We believe technology is the greatest single threat to the continuance of a concentrated market,'' he said.

As the market becomes more efficient, price negotiating, distribution and finding the market will have decreasing value for the broker.

But programme structure, risk identification, risk reduction and capital access will have increasing value. The role of contract negotiations will remain stable, he said.

Ultimately, the broking industry will become smaller and smarter.

Reflecting on the industry's fragmented nature, Mr. Christie said that the world's top 45 insurance companies, two percent of the total, represent 35-40 percent of world-wide premiums.

Half of the 45 companies are US-domiciled while three are Bermuda companies, ACE Ltd. EXEL Ltd. and Mutual Risk Management Ltd.

Mr. Christie joined Minet in Montreal in 1968 and after various management positions he became CEO of the company's professional services division in 1984.

In 1988 he assumed responsibility for Minet's North American operations.

He became deputy chairman of Minet Group in 1990 and COO in 1991 and was named chairman and CEO in 1992.

Minet, the world's tenth largest insurance broker, provides errors and omissions liability and professional liability insurance to the world's major professional organisations.

More on Hawksmere conference: Page 13 .