The report, London Matters 2017, which was conducted by the London Market Group and the Boston Consulting Group, found that London premiums from emerging markets declined from $10.5 billion in 2013 to $9.3 billion in 2015.
It suggested that the decline was underpinned by a number of factors, including increased competition from emerging market reinsurers, markets with lower cost of capital and expense, and jurisdictions that have actively supported the growth of alternative capital.
Asia remains the highest growth market globally, but was also the region in which London lost most ground between 2013 and 2015.
London’s global share of commercial insurance premiums “remains steady” at 5.8 percent. Growth was underpinned by a strong performance in the mature markets such as the UK and North America.
Nicolas Aubert, chairman of the London Market Group, commented: “Despite the Market’s continued strengths, many of the key challenges identified in the first London Matters report in 2014 remain, and this should give us all cause for concern.”
“The 2015 data is too recent to reflect the tremendous effort that has been committed in the last 18 months to grow and modernise the market. However, this latest intelligence confirms that things are not improving and we cannot afford to be complacent.”
“Now is the time to maintain our focus and, indeed review and revisit our plans, so that we can build momentum in our work to protect and enhance the pre-eminence of the London market in an increasingly global and competitive market.”