April 4, 2019 – the London Market Group (LMG) today unveiled the next stage of its work to take advantage of new trading opportunities that may emerge in post-Brexit world. These fall broadly in two categories: working with the UK government on formal trade negotiations and dialogues as well as activity to promote the market.
Malcolm Newman, Managing Director of SCOR’s EMEA Hub and sponsor of the workstream to create the right business environment said: “We believe that to make the most of these opportunities, we should move the conversation on insurance away from simple indemnity and focus on how the industry can support economic growth and resilience across the world. Insurance has a positive economic impact: a 1% rise in insurance penetration translates into a 13% reduction 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.
“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. 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. Our target markets include the US, Switzerland, ASEAN, Latin America and the MENA countries. 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.”
Next steps include:
• Bringing the industry together and building a consensus regarding the requirements for the London Market in a potential new trading arrangement with Switzerland.
• Ensuring that London Market issues are fed into the work of the UK-US Regulatory Working Group to maximise alignment with the US market.
• Promoting the value of the London Market in key ASEAN economies such as Indonesia and Malaysia highlighting how the market can help them deliver their ambitious economic development goals.
• Continue to support the work of the Islamic Insurance Association of London to promote London’s (re)takaful offer.
For more information please contact:
Caroline Wagstaff, Luther Pendragon | Tel: 020 7618 9158