Marsh chairman and CEO Dan Glaser described the multiple challenges facing the risk management and insurance communities in a recent speech to insurance industry leaders at InsideScope 2010 New York.

In this age of interconnectedness and "relentless acceleration," in which a single event can influence the macro environment, Glaser emphasized the importance of insurer focus on enhanced product innovation and service offerings — in addition to price competition.

"It's not easy to execute," said Glaser. "But strategies based upon innovative products and differentiated, high quality service, combined with competitive pricing, may offer better value for clients and more value, in the long run, for the insurance industry."

Such strategies would enhance the industry's "superb track record of innovation," which includes the development of numerous products in response to changing regulatory and business needs, such as directors & officers liability, environmental liability, cyber risks, and terrorism insurance.

"For the global economy, risk and the insurance industry are integral and essential to the flow of commerce and the regeneration of the world's productive prowess," said Glaser.