New data outlines clear opportunities for growth
A clear opportunity exists for the London Market to serve as a truly global centre for specialised insurance business, the International Underwriting Association has stated.
Responding to new industry data published in London Matters 2017, IUA chief executive Dave Matcham predicted that the next few years would be vital in establishing London’s long-term relationship with emerging markets in Asia and Latin America.
The report showed that between 2013 and 2015 the London Market’s share of business from emerging markets declined as premiums fell from $10.5bn to $9.3bn.
Mr Matcham said: “Clients naturally have a preference to buy locally if they can and many IUA member companies have increased their profile across a range of different markets in order to cater for this demand.
“However, London Matters shows that in recent years we have increased our already high share of global specialty markets, suggesting that for the most specialist risks our market is the place to look. As emerging economies mature their appetite for such cover will no doubt increase, so it is important that we push ourselves to reach beyond traditional markets.
“Similarly, London’s concentration of insurance expertise must be leveraged to innovate new solutions for emerging specialty risks. London Matters estimates that cyber premiums have grown by 74% over the past two years. If we can establish ourselves in the vanguard of such developing business, then our contribution to the global insurance industry can only be enhanced.”
Since the original London Matters report was published in 2014, the IUA has been a strong supporter of the London Market Group’s agenda to promote business growth. IUA staff and member representatives have participated on all four workstreams to help build a better business environment, make London an easier place to do business, promote the London Market story and develop a more diverse, dynamic workforce.
Mr Matcham added: “London Matters 2017 reaffirms the importance of projects already underway to modernise and enhance our marketplace. I hope the report will serve as a warning that we should not relax our efforts, but rather reinvigorate our determination to succeed.”