Speaking at the London leg of the European insurance roadshow organised ratings firm Fitch, Mr Tolle was asked whether the emergence of the three major global reinsurance brokers meant that they were able to exert more pressure on underwriters to cut rates?

Mr Tolle told the audience: “It really depends on the strength of the underwriter.

“I have always said that if you want to win then you have to be prepared to lose on occasion.”

He added: “It will always depend in the reaction of the reinsurers to any attempt by the brokers to strong arm them on pricing or the easing of terms and conditions. It is the brokers’ duty to see how far they can push it in behalf of the client.

“It is therefore up to the underwriters to stand up, and those underwriters who tend to emerge as winners in this market are those that will stand up.”

Mr Tolle, who was taking part in a panel discussion also said that the primary market in areas such as aviation needed a reality check as they sought to increase rates but not to anywhere near technical levels.

“In areas such as aviation reinsurers are only participating on a catastrophe level of they are not involved in the softening market to that extent," he told the conference. “The primary market is a different story.

“They are saying they are achieving 30% premium increases but it will only bring them to 60% of where they should be, at which point they are still dead.

“You may well be five metres underwater rather than 15 metres underwater but you are still drowning only in slightly warmer water.”

Mr Tolle added that with a lack of major catastrophes there was pressure across the reinsurance market but there was still discipline.

“What we have not seen is any rogue pricing actions from one of the major underwriters,” he explained. “Going forward I think we will see a disciplined approach but with a willingness to negotiate to some extent where rates are technically adequate.”