Are Insurers losing relevance?

During a presentation at the 2012 IIS Seminar in Rio De Janiero, Michael McGavick, CEO of XL Group P.L.C said that "insurers are struggling to maintain their relevance for policyholders as new risks emerge for businesses and the businesses themselves grow more comfortable with retaining risks."

He brought up that the insurance premium share of worldwide gross domestic product had shrunk from 3.4% to 2.8% over the past 10 years and said that insurers are failing to meet business needs in three key risk areas, technology, energy and supply chain.

Is McGavick right? Are insurers losing relevance? And if so, how do they regain it?

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