LONDON (Reuters) - The tax regime for Lloyd's of London must be eased if the 320-year old insurance market is to retain its international competitiveness, its chairman Lord Levene said in a speech late last Thursday.

"The tax treatment of Lloyd's in the UK must be amended for us to stay on top," Lord Levene said.

"It is under threat from other markets, notably in offshore centres whose tax regimes are very attractive."

Lloyd's of London faces a mounting competitive threat from emerging insurance industry hubs such as Bermuda and Dublin.

Last year, several Lloyd's insurers, including Hardy Underwriting and Kiln, moved to Bermuda to take advantage of the island's lighter tax and regulatory regime.

Hardy announced its move in December 2007, and analysts said at the time that moving to Bermuda could halve the company's tax rate.

"(The government) now tell us that they understand the force of our argument and hope to reach a decision soon. I fear though that 'soon' may become a moveable feast, and we need a favourable decision now," said Lord Levene.