International Underwriting chief executive Dave Matcham has welcomed changes to reinsurance regulation in Brazil that make it easier for clients in the country to access the London Market.
Speaking today (16 March) at the Anglo-Brazilian Insurance and Reinsurance Summit in Sao Paulo he stated that London is “very much open for business from Brazil” and described how the market is actively seeking to raise its profile in Latin America.
“You can be assured that a lot of work is being undertaken to make the London market as attractive to do business with as possible, ” said Mr Matcham. “London has the highest concentration of intellectual capital fostered by the close co-location of insurers, brokers and support services. It should be the fulcrum of insurance invention, where new solutions to meet new customer demands are developed, nurtured and delivered.”
Last year, in an unexpected move the Brazilian National Council of Private Insurance announced a relaxation of rules requiring reinsurance contracts to be placed with local reinsurers. The regulations had been a frustration and their removal can only be in the long term interests of local clients Mr Matcham told delegates in Sao Paulo.
“Here in Brazil there is adequate capacity and expertise to support many local insurance needs, ” he said.
“But ideally these client needs would be symbiotically complemented between the local and London Market to ensure the whole portfolio is covered as they would like.”
Describing efforts by the London Market Group to boost competitiveness Mr Matcham outlined projects aimed at improving London’s processing infrastructure, regulatory framework, the diversity of its workforce and its international marketing reach.
This ‘growth and modernisation agenda’ will create an environment for innovation he said, enabling companies to respond to new client demands and emerging risks.
“The London Market proposition is compelling but is not the only proposition on offer now. London is not a ‘local market’ – but it is a powerful cluster of knowledge, arguably the greatest global hub.
“We are not, however, effectively tapping into the areas of the world with the growing economic output and resulting insurance demand.”
About the IUA
The International Underwriting Association of London (IUA) represents international and wholesale insurance and reinsurance companies operating in or through London. It exists to promote and enhance the business environment for its members.
The IUA’s London Company Market Statistics Report shows that overall premium income for the company market in 2014 was £22.943bn. Gross premium written in London totalled £15.855bn while a further £7.079bn was identified as written in other locations but overseen by London operations.