The London Market Group has today published a five-point plan asking for regulatory and legislative change to help support the industry’s competitive position, grow exports and deliver increased levels of foreign inward investment into the country.

Sean McGovern, CEO of UK and Lloyd’s at Axa XL and sponsor of LMG’s government relations work, commented: “Right now, the UK government is looking at how financial services should evolve in a post-Brexit world, and the London market wants to seize the moment while there is a willingness to support positive change that can benefit the insurance industry.

“The LMG has taken part in various government consultations on the future regulatory framework and Solvency II. This document will form the backbone of a comprehensive campaign by the LMG, working with ministers, parliamentarians and the regulators to reinforce the importance of the insurance market and to ask for what it needs to continue to grow globally.”

The five-point plan calls for government, the regulators and industry to work together to recognise the nature of the large complex risks it covers and the sophisticated corporate buyers it serves, through a “more proportionate approach to regulation”.

It is calling for support to help ensure that the London Market remains the most attractive home for large risks through an international competitiveness duty for UK regulators; and for reform of the Solvency II regime, so that London becomes the “natural home" for foreign re/insurance companies.

The LMG is also calling for promotion of a UK captives market; and finally for trade negotiations, regulatory dialogues and market promotion to help the industry gain access to emerging markets.

Commenting on the proposals, Jonathan Drake, partner and head of non-contentious insurance at law firm, DWF, said: "The LMG's Plan is a laudable and ambitious attempt to drive post-Brexit regulatory change for the London insurance and reinsurance market. However, it remains to be seen whether its de-regulatory tone will find traction, particularly given that the FCA is currently pushing ahead with a range of interventionist proposals for the insurance sector.

“But there is a recognition that the loss of passporting rights has had a noticeable impact with a shift of senior management roles to EEA jurisdictions. Post-Brexit there are opportunities for regulators and the Treasury to create a more flexible and attractive regulatory regime and take advantage of opportunities for insurers and reinsurers in the new UK trading arrangements."

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