Brian Duperreault says there was "turmoil" at Marsh & McLennan Co.s when he took over as the global insurance broker's CEO early last year.

But in an interview at the RIMS Conference in Orlando on Tuesday, the Bermudian told The Royal Gazette that the situation had improved markedly.

The former Ace Ltd. CEO came out retirement to take the hot seat at the giant New York-based brokerage and admitted that he had something of a baptism of fire.

Mr. Duperreault was handed the task of improving efficiency and reversing a period of declining revenues under his predecessor at MMC, Michael Cherkasky. He has axed thousands of jobs in his first year.

"Im just starting my second year and there's certainly been a big change since last year," Mr. Duperreault said.

"Then I was just getting started and there was a lot of turmoil in the company. That turmoil has basically gone.

"Dan Glaser, the CEO of Marsh (the company's insurance broker segment) is making great progress - but we're not quite there yet."

Paying an impromptu visit to the Bermuda booth, Mr. Duperreault said he was among friends. Despite the pressures of his high-profile post, he comes back to Bermuda roughly every other weekend. "It's still my home," he said.

And he backed the Island to survive the multiple challenges it faces and to maintain its status as a leading insurance centre.

"It's still the risk capital of the world and it's still the place to go if you need capital," Mr. Duperreault said. "However, nothing is totally secure though and Bermuda does need to ensure it keeps its competitive edge."

Mr. Duperreault also commented on the conflicting trends he saw happening in the insurance market which are leading to what he has previously described as an "invisible hard market", as a decline in economic activity mitigates an upward pressure on rates brought on by the destruction of capacity through investment losses the industry suffered last year.

"I think there are some rate movements, but not across all lines," he said. "But exposures are a significant issue.

From the clients' viewpoint, they are pushing the carriers for as much cost relief as they can get.

"The cost of capital is high, but exposures are down, so it's a very interesting market right now."