A poll from London-based insurance brokers has revealed a marked up-tick in premium volumes flowing into London from the US this summer.
According to a survey of its members conducted by broker body LIIBA, total premiums for US property & casualty business in July 2020 were 25% higher than July 2019. In the same month, US reinsurance business were 40% higher than in July 2019.
The figures chime with a recent study by the International Underwriting Association, which showed a 26.9% growth rate for premiums coming from the US and Canada. For business controlled by the London market but written elsewhere, the IUA commented that the one-third growth rate for US/Canadian business was ‘remarkable’.
Last year, the US surplus lines market reported premium growth of 11.2%. The survey of LIIBA members was conducted in August 2020.
Christopher Croft, CEO of LIIBA, commented: “These are fascinating figures coming from our members. They seem, on the face of it, to show that Covid-19 has led to a tightening of the US domestic market, which is increasing the flow of complex risks into the surplus lines market with London as their ultimate destination It’s a combination of more business and higher rates due to the hardening market.
“This is a vote of confidence in London and its ability to handle the more challenging risks – even during these difficult times. Importantly, it shows that our market is ready and willing to help US clients and brokers when they are depending on us for solutions.”
