NU Online News Service, June 24, 12:41 p.m.EDT

NEW YORK–American regulators must put into place"better, not simply more" financial services rules and regulators,while making sure reform efforts sustain, rather than kill thecapitalist goose laying all of the economy's golden eggs, Londoninsurance market leaders warned.

Efforts in Congress and the White House to revamp the wayfinancial services are overseen "must go beyond optimistic slogansand brave words," said Lord Peter Levene, chair of Lloyd's ofLondon, in a speech during the annual Lloyd's New York CityDinner.

"It is imperative that we don't avoid the difficult discussionsand painful changes required to make sure the economic crimescommitted that nearly ruined us all are never repeated," headded.

"No one in this room is a fan of more regulation," Lord Levenesaid. "But we are all supporters of better regulation."

Prince Andrew, the Duke of York, who serves as the UnitedKingdom's specialrepresentative for international trade and investment, in hisown speech at the dinner suggested that "to end the era ofmistrust, the financial services market and its products must befar more transparent."

However, while revamping the regulatory system, governmentofficials from both sides of the Atlantic must be careful not to domore harm than good, he warned.

"We must assure that future steps do not kill the very capitalmarkets that reforms are meant to save," he said.

Lord Levene also cautioned against any instinct to resurrectprotectionist measures for short-term gain that would do long-termdamage. "Globalization might have exacerbated the current financialproblem," he conceded, "but turning to nationalism would be farworse."

Lord Levene did not address any specific reform proposals,although in the past Lloyd's–which writes over $12 billion ofbusiness in the United States, comprising some 40 percent of itsglobal volume–has been an outspoken supporter of an optionalfederal charter, which would free the syndicated marketplace fromhaving to deal with each state jurisdiction.

However, he did emphasize that the property and casualtyinsurance industry in general, and Lloyd's in particular, remainsfinancially robust despite the crisis in the world economy.

"It is no accident that Lloyd's came through the financialcrisis relatively unscathed," according to Lord Levene, who went onto boast that his market was "not lured into the more exoticproducts that proved to be the downfall for many of ourcompetitors."

Indeed, he added, "we ignored critics who complained we were tooconservative, whereas now conservatism in investment strategy is abadge of honor."