The London Market Group has welcomed The House of Lords Industry and Regulators Committee’s inquiry into the regulation of the London insurance market, which was announced recently.
The inquiry is to “explore the extent to which regulatory policy is well-designed and proportionately applied and the possibilities for optimising policy following Brexit.”
It will look at the roles of the Bank of England and the Financial Conduct Authority (FCA) and the appropriateness of regulation relative to the risks posed by the London marketplace.
Sean McGovern, CEO of UK and Lloyd’s at AXA XL and sponsor of LMG’s government relations work, commented: “This is one of the first times that Parliament has looked closely at the regulation of the London insurance market and is an opportunity to highlight the market’s value to the economy.
“The inquiry will also allow us to work with peers and parliamentarians to show clearly the impact that regulation can, and does, have on the future success of the market.”
He noted that the London market serves a sophisticated group of corporate global buyers, and its regulatory needs are different to more consumer-focused businesses.
Last year, The London Market Group launched its five-point plan, which asked for regulatory and legislative changes to enhance the London market’s competitive position.
“We welcome the decision by Parliament to take a deep dive into the issues we’ve raised, via this inquiry.
“This is a great opportunity to advance the case for more proportionate regulation and a better remit around global competitiveness. Above all, it will help our market to serve its global clients as effectively as possible,” he concluded.
