Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • January 2015
01

'We must fight for our base in London,' says crown representative for insurance  

Open-access content Tuesday 27th January 2015 — updated 5.13pm, Wednesday 29th April 2020

Insurers urged to act in order to save the future of the London insurance market.

2

Michael Wade, crown representative for insurance in the Cabinet Office, pointed out several threats London faces as a global financial centre, particularly in the insurance market, including: lack of growth, surplus capital, other competing hubs, competition from local insurers and London's "adversarial" regulatory environment. 

At a conference in London on the future of the UK insurance sector, organised by the Westminster Business Forum, Wade explained how surplus capital affected the city. Wade said: "You have a surplus of capital, particularly in the reinsurance areas, where prices are being driven down; too much capital chasing too little business."

On competition from other cities as aspiring insurance hubs, Wade explained: "The hubs are developing. That's been one of the most interesting aspects in the past 10 years. You have Zurich, Singapore, Dubai and many other aspirants to create insurance hubs worldwide."

Raising the question of the regulatory environment of the London market, he said: "Some would say here in London we are too bureaucratic and adversarial.

"If you want to set up in Bermuda, you are offered lunch with the regulator and you are set up in a few weeks. That is not always the case in London." 

In order to retain London's reputation as a financial hub, Wade stressed the quality of underwriting. Wade said: "It's not about a price war. The quality, therefore analytics and modeling expertise, these are absolutely fundamental."

Wade also urged insurers to actively promote London overseas. He said: "Even if your product is good, you can't compete unless you promote London. You have got to be out there promoting the London market. It will not flow naturally to London."

Meanwhile, a report on London's insurance market has found the regulatory burden in London puts the city at a disadvantage, with London's costs 9% higher than its peers in 2013.

Published by the London Market Group (LMG) and the Boston Consulting Group (BCG), the report London Matters: The Competitive Position of the London Insurance Market addressed the current issues London faced as a global hub. 

Interviews with more than 120 market participants also revealed customers preferred buying insurance in their local market or region where underwriting expertise was available locally. 

Pia Tischhauser, senior partner and BCG's global lead for commercial insurance said: "This study provides a broad view of the challenges and opportunities for London market participants. The growth of regional hubs such as Singapore, Zurich and Bermuda is challenging the traditional structure of the global insurance industry and London's role within it."

This article appeared in our January 2015 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

Insurers must prepare for Ebola, warns the World Bank

Insurance companies need to work with governments and NGOs to build a system to help all countries prepare for health disasters such as Ebola, according to the World Bank.
Wednesday 28th January 2015
Open-access content

Only 6% of insurance workers got a pay rise in the past year

In the last 12 months, 6% of people working in the insurance sector have received a pay rise, according to a survey.
Friday 30th January 2015
Open-access content
2

LASPO reforms cut motor insurance legal fees, IFoA finds

Legal fees for third party motor insurance damage and injury claims last year fell by two-thirds since reforms to whiplash claims were introduced in 2013, actuaries said today.
Monday 19th January 2015
Open-access content

Motor insurance prices down over 2014

The average cost of a new comprehensive motor insurance policy fell by £51 in 2014 to £594, despite late year price increases, according to price a comparison website.
Monday 12th January 2015
Open-access content

4.8 million people at risk of making poor pension decisions after reforms

Nearly five million people aged 50-70 are at risk of making poor decisions with the new pension freedoms taking place this April, research shows.
Tuesday 27th January 2015
Open-access content
2

7% of people would take their pension as cash, says survey

Some 7% of people would take out their pension savings as cash when new freedoms come into force in April this year, according to a survey.
Monday 26th January 2015
Open-access content
Filed in
01
Topics
General Insurance
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ