Ace Ltd. CEO Evan Greenberg told a Institutional Investor conference this week that the insurance industry was “well into the early stages of a soft market”.

“For renewals, prices continue to soften (fall) globally, and the rate of decline has accelerated moderately, particularly in non-CAT (catastrophe) property and casualty-related lines. Terms and conditions for the most part are holding,” Mr. Greenberg said.

“New business pricing is softer than renewal pricing and there is little room, or in some cases no room, for further price deterioration. However, competition for new business is accelerating, and we are seeing a growing difference between new and renewal prices. It’s far more difficult to win new business as we are committed to maintaining underwriting discipline.”

Ace’s leader then turned his attention to regulatory matters in the US.

“I share the concern of others ... that the US and New York City in particular are in danger of losing their competitiveness in the global financial services industry,” he said.

“Regulation is inconsistent, contradictory from state to state, and in many states, simply outdated. It is costly, and in many cases, politically motivated.

“Fifty-state regulation stifles competition and in fact impacts affordability and availability of coverage.

“The recent legislative action to partially nationalise the business in Florida is a perfect example. In my opinion, this is short-sighted and politically motivated. It will prove to be short-term expedient, and over any reasonable period of time, it will prove to be economically unsound and irresponsible, putting the state’s economy and its citizens in a vulnerable position.”

Congress, Mr. Greenberg said, should enact an optional federal charter with freedom of rate and form.