New York City

American regulators must put into place "better, not simplymore" financial services rules and regulators, while making surereform efforts sustain, rather than kill the capitalist gooselaying all of the economy's golden eggs, business leaders from theLondon market here 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.

"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," he addedin a speech last week during the annual Lloyd's New York CityDinner.

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

He suggested that "to end the era of mistrust, the financialservices market and its products must be far more transparent."

However, while revamping theregulatory system, government officials from both sides of theAtlantic must be careful not to do more harm than good, warnedPrince Andrew, the Duke of York, who serves as the United Kingdom'sspecialrepresentative for international trade and investment, in hisown speech at the dinner.

"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 every state jurisdiction.

However, he did emphasize that the property and casualtyinsurance industry in general, and Lloyd's in particular, remainsfinancially sound 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."

(During the dinner, theNational Underwriter learned that LoriAnn Lowery will beleaving her post this summer as president of Lloyd's North Americaand that a search is on for her replacement.)

'SULLY' HONORED

Meanwhile, Lloyd's presented its Gold Medal for Saving Life toCaptain Chesley "Sully" Sullenberger III, who on Jan. 15 landedU.S. Airways Flight 1549 in the Hudson River after its engines weredamaged by birds and stalled just after takeoff.

Lord Levene introduced the guest of honor with words of praisefor Capt. Sullenberger's "risk management skills, selflessness,sound judgment and bravery" in landing the plane safely and savingall 155 on board.

However, he added a sobering observation. "We are grateful forthis 'miracle on the Hudson,'" he said, "while mindful that had theplane come down 400 yards to the left or to the right, we couldhave been facing another 9/11-type catastrophe."

Capt. Sullenberger–after being presented with his medal byPrince Andrew, a fellow pilot who flew in the Falklands War–said hewould "gratefully accept this deep honor on behalf of my crew, mypassengers and all the first-responders who performed so admirablyand courageously during the evacuation that day."