Representatives from the Lloyd’s Market Association (LMA) and the London Market Group (LMG) have expressed their hopes that a new UK government continues to back the country’s financial services to support the Lloyd’s market’s significance and continuous growth.
The comments follow UK Prime Minister Rishi Sunak’s call for an early general election for July 4, 2024.
This move came as a surprise as October or November had previously been thought more likely for an election date.
Sheila Cameron, CEO of the LMA, stated: “We hope that a new government will ensure that the UK’s regulators meet their objectives to support UK financial services to remain globally competitive. We believe this is hugely important to help the Lloyd’s market maintain its global significance.”
“Since 2020, the London specialty insurance market has grown to become almost one third (32%) of the City’s GDP, having been 24% only a couple of years ago. A market that is growing in significance in this way needs government focus and support.”
She continued: “We hope any new government looks to ensure that regulation is proportionate to the risk and the buyer.
“Given that in the Lloyd’s market both buyers and sellers are usually specialists with high levels of expertise, there is a clear opportunity for the new government to apply a lighter touch to regulation and reduce reporting requirements for our market without increasing risk.”
Caroline Wagstaff, Chief Executive Officer, LMG also shared her comments on the election, saying: “Our data shows that London is the leading risk transfer market in the world.
“We very much hope the next government helps us to capitalise on that by ensuring that we can offer clients all the tools in the tool kit and rapidly progressing a UK captive regime. It is a quick win for demonstrating a commitment to growth and competitiveness and would make an important contribution to the UK economy.”
JP Morgan shares similar opinions, as they have stated that the July election could accelerate positive regulatory change that could ultimately support the country’s insurance industry.
According to analysts, although neither manifesto commitment from the two parties states any major change or immediate impact on UK re/insurers, there are two important themes, Workplace Pensions and Solvency UK reform, that could see some benefits.
