We want to create a business environment in which the market can flourish, so that London is able to respond to new client demands and existing and emerging risks.
To help us achieve that the LMG will:
London should be the fulcrum of insurance invention, the place where new solutions that meet changing customer demands are developed and nurtured.
Significant headway has been made in securing the key goals that we originally set out in 2021 to improve the business environment in which the insurance market operates. These include:
Thanks to the LMG’s sustained campaigning, the Financial Services and Markets Act now includes measures which enhance the accountability of the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA). Following pressure from the LMG, action has been taken by the Government requiring:
An international competitiveness and growth objective for both regulators has been secured within the Financial Services and Markets Act 2023, following a long-term campaign from the LMG to introduce such a duty. Both regulators now have a statutory obligation to report on how they are facilitating the UK’s international competitiveness and growth.
Thanks to the pressure applied by the LMG during the passage of the Act, the Government strengthened the legislation by adopting many of the LMG’s proposed amendments. The Act now includes:
HM Treasury announced proposals to remove the requirements for UK branches of foreign insurers to calculate branch capital requirements and to hold local assets to cover them.
The LMG has met the City Minister to discuss captives, together with captive owners and market experts, to explore the case for designing a competitive UK captive insurance regime. We welcomed his commitment to “work with industry to support growth and international competitiveness across the UK’s insurance sector, helping ensure the UK remains a world leading destination for risk management solutions and insurance innovation.” The LMG will continue its work with the Government and PRA towards the introduction of a UK captives regime.
The LMG continues to work with the Government and the PRA to constructively support the improvements being made to the authorisation process for the UK Insurance Linked Securities (ILS) regime, which was introduced in legislation following a long-standing LMG campaign. The LMG has formed an expert ILS Working Group to consult with market practitioners on specific improvements that could be made to the regime and present its findings. The PRA has said it will consider this and how it can bring forward a package of reforms.
The LMG continues to call for a more welcoming environment in the UK for international investors seeking to set up businesses, create jobs and invest in the UK.
Given post Brexit freedoms, now is the time to consider what more government, regulators and the industry could do together to encourage and welcome this crucial investment.