Regulatory change is needed if London to remain global insurance hub: LMG
The London Market Group (LMG) has called for UK regulators to take a more proportionate approach to regulation, reform Solvency II and develop a UK captives market in its new five-point plan.
The 5-point plan calls for government, the regulators and industry to work together to:
- Recognise the nature of the large complex risks the sector covers and the sophisticated corporate buyers it serves, through a more proportionate approach to regulation.
- Ensure that the London Market remains the most attractive home for large risks through an international competitiveness duty for UK regulators.
- Make London a natural home for foreign re/insurance companies by reforming the Solvency II regime.
- Increase the choice of buyers and growing the market by developing and promoting a UK captives market.
- Gain access to emerging markets around the world, to help them build resilience against natural disasters and climate change events through trade negotiations, regulatory dialogues and market promotion.
Sean McGovern, CEO of UK and Lloyd’s at AXA XL and sponsor of LMG’s government relations work, commented: “Right now, the UK government is looking at how financial services should evolve in a post-Brexit world, and the London market wants to seize the moment while there is a willingness to support positive change that can benefit the insurance industry.
“The LMG has taken part in various government consultations on the future regulatory framework and Solvency II. This document will form the backbone of a comprehensive campaign by the LMG, working with ministers, parliamentarians and the regulators to reinforce the importance of the insurance market and to ask for what it needs to continue to grow globally.
“We have put forward a five-point plan to support the UK’s competitive position, grow our exports and deliver increased levels of foreign inward investment into both London and across the regions of the UK, where the market is expanding.”
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