A Treasury minister has invited the (re)insurance industry to feedback in detail how to make the UK a more attractive place to transact business in the wake diminishing trade.
Economic secretary to the Treasury Andrea Leadsom yesterday delivered a speech at an Insurance Institute of London lecture held in Lloyds of London's Old Library.
In her speech, she said she wanted to celebrate one of Britain's 'great and enduring' industries, but also urged delegates to do more to ensure 'insurers play a fundamental role in the economy' of the UK.
'My message today is: if you want to expand, we will help you do so,' she said.
Leadsom stated that, although the formal implementation of the Insurance Growth Action Plan (IGAP) - a industry and government partnership aimed at increasing the sector's contribution to economic growth - had been completed, 'our commitment to the insurance industry remains'.
'Increasingly, the proportion of business actually traded in London by groups [including, Amlin, Brit, Hiscox, Beazley and Novae and huge distributors like AON, Marsh and Willis] is diminishing - so we need to understand why this happens and work out what can be done to ensure "London" is the preferred trading domicile,' she said.
'So behind the chancellor's [George Osborne's Autumn] statement is the question - how can the UK be a more attractive place to transact this business? What are the barriers? How do we create these more favourable conditions in London?
'And this is where each of you can help the UK government - by making your views known in detail so that they can be examined and assessed.'
A Treasury spokesman told The Actuary that it was working with the London Market Group (LMG), which was coordinating the feedback. LMG provides information on the modernisation programme being run in the London insurance market.
He said insurers had about four to six weeks to make their views known in detail so that they could be examined and assessed.
He added that the Treasury was looking to produce interim findings for the March 18 Budget. 'Anyone with views to share should speak to the LMG,' he added.
In total, the London market transacts £58bn in premiums per year, which is equivalent to over a fifth of the City's contribution to UK gross domestic product.
Of the £58bn, £6.8bn is from the reinsurance of non-UK domiciled insurance and reinsurance companies, and £23.2bn relates to the insurance of overseas commercial enterprises.