London re/insurance groups hope the new British government will adopt a “lighter touch” in regulation

Representatives of the Lloyd’s Market Association (LMA) and the London Market Group (LMG) expressed hope that the new UK government would continue to support financial services in the country to support the importance of the Lloyd’s market and its continued growth.

The comments follow British Prime Minister Rishi Sunak’s call for an early general election to be held on July 4, 2024.

The move came as a surprise as October or November was previously thought to be a more likely election date.

Sheila Cameron, LMA chief executive, said: “We hope that the new government will ensure that UK regulators achieve their objectives in helping UK financial services remain globally competitive. We believe this is extremely important to help the Lloyd’s market maintain its global relevance.

“Since 2020, London’s specialist insurance market has grown to account for almost a third (32%) of the city’s GDP, up from 24% just a few years ago. A market that is gaining importance in this way needs the government’s attention and support.”

She continued: “We hope that any new government will ensure that regulation is proportionate to the risk and the buyer.

“Given that in the Lloyd’s market both buyers and sellers tend to be specialists with a high level of expertise, the new government has a clear opportunity to ease regulation and reduce reporting requirements for our market without increasing risk.”

Caroline Wagstaff, CEO of LMG, also shared her comments on the election, saying: “Our data shows that London is the leading risk transfer market in the world.

“We very much hope that the next government will help us build on this by ensuring that customers have all the tools in the toolbox and the UK’s rapidly expanding bondage system. This is a quick win for demonstrating a commitment to growth and competitiveness that will make a significant contribution to the UK economy.”

Similar opinions are shared by JP Morgan, which stated that the July elections may accelerate positive regulatory changes that could ultimately support the insurance industry in the country.

According to analysts, while neither manifesto from either side foresees any major changes or direct impact on UK reinsurers/insurers, there are two important topics – workplace pensions and solvency reform in the UK – which could provide some benefits.