"Consolidation, demutualisation, convergence, crisis. These all combine to make this a very interesting time in the insurance world," Kees Storm, chairman of the International Insurance Society (IIS), told Reuters in an interview.

Storm, who also chairs Dutch insurer Aegon NV said the meeting would be an opportunity for industry leaders to discuss the impact of these global trends on their business.

"I think we will come away from the meeting with a clearer idea of how the world insurance market is performing," he said in a telephone interview in advance of the conference.

Sydney will host the 34th annual IIS meeting, expected to draw 350 senior executives from 40 countries, plus academics and researchers, for a three-day discussion with the theme of "creating success in a globalmarketplace", starting on July 12. Globalisation and consolidation of financial markets had a big impact on the US$2 trillion a year insurance business, Storm said.

"Today's financial markets are completely interconnected. That interaction on a global scale has great impact on domestic insurance markets," he said.The blurring of traditional barriers between banking and insurance has gathered pace beyond the bancassurance model of distribution developed in Europe in the 1980s.

With the latest round of mega mergers, capped recently by the US$70 billion Citicorp and Travelers Group merger deal, the barriers look set to be entirely dismantled.

The meeting will explore the prospects and consequences of this global trend over three days of speeches and workshop sessions, as well as discussions on the sidelines of an event which is biggest strategic gathering of top executives on the insurance calender.

Last year about 500 executives from 47 nations met in Mexico City to discuss strategies for growth at atime when global economic conditions were markedly different from those today in the wake of the Asia's crisis.The crisis, which has prompted IMF-led bailouts to the region of more than US$100 billion, threatens to spark a world recession and is expected to stunt global insurance growth, will be highlighted at a special session of the conference.

Industry leaders from Thailand, Indonesia and the Philippines will discuss the impact of the crisis on insurance in their countries and the region. Storm said it was vital to understand Asia's turmoil better and to relate to regional players that foreign participation could help the market regain lost ground faster. "It is not only vultures that are flocking to Asia. Foreign firms can bring expertise and experience to Asian companies and establish strong partnerships. We can add value," he said.