Representatives from London Market Group (LMG) have expressed their hopes that a new UK government would back the regulatory changes needed to facilitate UK domiciled captives.
Caroline Wagstaff, chief executive officer at LMG, says: “Our data shows that London is the leading risk transfer market in the world. We very much hope the next government helps us capitalise on that by ensuring that we can offer clients all the tools in the tool kit and rapidly progressing a UK captive regime.
“It is a quick win for demonstrating a commitment to growth and competitiveness, and it would make an important contribution to the UK economy.”
The comment follows UK Prime Minister Rishi Sunak’s call for an early general election on 4 July 2024.
In its report published earlier this week, the LMG notes that the market for captive insurance worldwide is expected to reach US$161 billion by 2030, but the UK currently sees none of this business.
Sean McGovern, Chair of the London Market Group, comments: “Although the London Market remains the largest hub of direct (re)insurance when compared to other centres, its rate of growth has been slower than some of its key competitors, and over the last decade, its market share has remained broadly stagnant.”
Between 2020 and 2022, the London insurance market grew by 32 per cent, while in the same period, Bermuda saw growth of 39 per cent, according to the LMG.
McGovern adds: “To continue to punch above our weight, there is an urgent need to create a regulatory environment that facilitates UK domiciled captives, demonstrating both at home and abroad that the market can respond swiftly and effectively.”
