September 23rd 2024
LONDON 23rd September, 2024 – Today, the London Market Group (LMG) the trade body for the specialist commercial (re)insurance industry in London has launched a white paper Investing in Our Future outlining its key proposals for reforming the apprenticeship levy at the Labour Party Conference in Liverpool. Over the past few months, the LMG has worked with companies across the London Market to understand the challenges of using the current levy model and to come up with clear reforms that will help to increase the number of apprenticeships available, freeing up unused levy capital and instilling greater flexibility for companies accessing their levy funds.
Caroline Wagstaff, CEO of the London Market Group, commented: “Making specialty insurance a destination career for school leavers is central to the activity of the LMG. In the conversations we have had with market firms, around our Futures Academy and Apprenticeship Discovery programmes, we have heard about the significant challenges that they face in accessing levy funding, with some companies even hiring school leavers but not using their levy funds at all.
“This is the worst of all possible worlds. Today we have put forward some practical and achievable quick wins to make the apprenticeship levy work better for firms in the London market and move towards a levy that can support growth and skills. Our expectation is that this will mean that more companies can hire more school leavers to work in this world-leading industry”.
The publication of “Investing in Our Future” outlines the findings of our consultation with insurers and brokers on the challenges of engaging with the levy process. Recommendations include:
- Enable the levy to be spent on all course-related training, including soft skills and ongoing support,
- Adjust levy funding in line with inflation,
- Introduce flexible standards which meet the needs of modern businesses,
- Reform arbitrary end points to maximise completions and simplify payments to training providers, and
- Make it easier to transfer levy funds to other organisations.
Caroline will be participating alongside Rain Newton-Smith, Chief Executive at the CBI, on a panel on Tuesday 24th, chaired by former advisor to Sir Keir Starmer, Nick Forbes, on “Why is there a need for growing collaboration between higher and further education to deliver the skills Britain needs.” Caroline will speak about the experience of London Market firms, discussing the problems and solutions most frequently encountered by insurance businesses in accessing young talent and ensuring the next generation of underwriters and brokers have the skills needed to succeed in this global industry.
The London Market
- The London market employs 60,000 people and contributes nearly £50bn to the UK economy.
- To put £50bn into context it is the equivalent of paying the (annual) salaries of all NHS nurses and midwives in the UK three times over.
- It is the world’s largest specialty insurance market – nearly twice as large as its nearest competitor and earns $160 bn in income every year.
- Almost three quarters of that is from overseas, making it a key driver of foreign earnings to the UK economy.
ENDS
For more information please contact:
Victoria Sisson, Omnia Partners
07941 294872
