The London Market Group (LMG) has announced the next stage in its plans to build on new trading opportunities, which includes a focus on how the industry can support global economic growth and resilience.
The Group noted that a 1% rise in insurance penetration translates into a 13% reductions in uninsured losses, a 22% reduction in taxpayers’ contribution following a disaster and increased investment equivalent to 2% of national GDP.
“The London Market can play a critical role in supporting the economic development of countries across the world, growing trade in existing markets and opening new ones,” said Malcolm Newman, Managing Director of SCOR’s EMEA Hub.
“The LMG has identified a number of priority markets that it will seek to work on with the Treasury and the Department of International Trade,” he explained.
“Some of this will clearly depend on the Brexit discussions which are currently ongoing, but we feel we can make progress now using many of the existing trade fora.”
Working with the UK government, the LMG will seek to develop formal trade negotiations and dialogues, as well as activity to promote the market.
“Our target markets include the US, Switzerland, ASEAN, Latin America and the MENA countries,” Newman continued. “We would like the UK Government to develop an approach to third countries that seeks to liberalise access to such markets.”
“Using its embassies, consulates, and the many trade discussions and dialogues it is having, the UK Government can also help London to promote insurance and support the message that it helps foster sustainable economic and social development.”
The LMGs’ next steps will include bringing the industry together and building a consensus regarding the requirements for the London Market in a potential new trading arrangement with Switzerland.
It will also ensure that London Market issues are fed into the work of the UK-US Regulatory Working Group to maximise alignment with the US market.
Additionally, the LMG will focus on promoting the value of the London Market in key ASEAN economies such as Indonesia and Malaysia, while continuing to support the work of the Islamic Insurance Association of London to build on London’s (re)takaful offer.
