London
11 May 2017
Reporter: Becky Butcher

Decreasing global reinsurance premiums continue in London


London’s global reinsurance premiums declined from 13.4 percent in 2013 to 12.3 percent in 2015, according to a new report.

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.”

More Industry news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Funds approved for ‘crumbling foundations’ captive
21 February 2018 | Connecticut | Reporter: Ned Holmes
The Connecticut State Bond Commission has approved $350,000 to set up a non-profit captive insurer, which is a state government solution for an issue impacting a reported 5000 homes in the state
Crawford launches workers compensation service
20 February 2018 | Atlanta | Reporter: Ned Holmes
Crawford & Company has expanded its service portfolio in Australia to include workers’ compensation.
Tax shelter micro captives bubble set to burst, says Adkisson
16 February 2018 | Las Vegas | Reporter: Ned Holmes
The tax shelter micro captive bubble is set to burst in 2018, resulting in large numbers of such companies to surrender their licenses, as many did last year, predicts Jay Adkisson, partner at Riser Adkisson
Second cat bond issued on ILSBlockchain
13 February 2018 | St Peter Port | Reporter: Ned Holmes
Solidum Partners has issued the second catastrophe bond on ILSBlockchain, a private blockchain set up by their incorporated cell company Solidum Re
RRGs remain financially stable, says Powell
12 February 2018 | Ohio | Reporter: Ned Holmes
RRGs collectively reported almost $2.8 billion of direct premium written through Q3 last year, a 3.5 percent increase over the same period in 2016, according to a report by Demotech's senior financial analyst Douglas Powell
Carey Olsen and Michael Hanson launch Bermudian firm
08 February 2018 | Hamilton | Reporter: Ned Holmes
International offshore law firm Carey Olsen and Bermudian attorney Michael Hanson have joined forces to establish Carey Olsen Bermuda, a new law firm for the island’s international finance market
Barbados welcomes 20 new captives
08 February 2018 | Bridgetown | Reporter: Ned Holmes
Barbados licensed 20 new captive insurance companies last year, an increase on the 13 that were licensed in 2016, according to the Barbados Financial Services Commission