The London Market is now worth US$187bn in gross written premium, having doubled in size over the past decade, but faces a critical talent shortage that threatens future growth, according to new data from the London Market Group (LMG). The trade body's 2026 London Matters report shows the market has increased its global share to 8.7% in 2024, up from 8.2% in 2022, and now contributes £61bn to UK GDP, equivalent to 37% of "the City's" economic output. However, the report warns that the market's workforce is ageing rapidly, with the proportion of employees under 30 expected to fall from 24% to just 7% over the next decade. "London remains the global leader in risk transfer, demonstrated by its growth in absolute size and market share," says Chris Lay, chair of the LMG. "Yet we cannot be complacent as, whilst much smaller than London, some other jurisdictions have grown faster in recent years." The market currently employs around 61,000 people, up from 59,000 in 2022, but is expected to require 82,200 full-time equivalents by the end of 2034. Graduate job postings in insurance fell 18% year-on-year in September 2025, despite this growing demand. Caroline Wagstaff, CEO of the LMG, says the demographic shift "should ring alarm bells" for the industry. "In order to continue to grow, we must have talented teams in place and fully trained, and that takes time," she adds. "Graduate and entry level employment needs to increase to meet demand in the next decade, but this is not being reflected in current hiring. This is an industry-wide problem that needs industry-wide attention." The report identifies cyber, AI and energy infrastructure as key growth areas. London is already Europe's largest cyber insurance market, with over 800 firms providing cybersecurity products and services, a 30% increase from 2022. The market writes US$5.3bn in cyber premium annually. Renewables premiums could increase by up to US$0.8bn between 2024 and 2030 as the share of renewable energy use rises to around 20%. On capital, the LMG highlights the success of London Bridge 2, which has grown at approximately 150% per annum since its 2022 launch to reach US$1.9bn in deployed capital. However, this represents just 2% of global alternative capital. "The London Market was not present in the alternative capital space prior to 2022," says Lay. "It is clear that the London Market needs to build on this success and do more to attract alternative capital through structures such as captives and ILS." The market remains larger than its five closest competitor hubs combined, with London's US$187bn exceeding the combined total of Switzerland, Bermuda, Singapore, Japan and Hong Kong by US$28bn.
