From: Captive International
The London Market Group (LMG) has called for policymakers to promote London as a centre for captive insurance companies, as part of a five point plan to develop the UK’s re/insurance industry.
LMG stressed the importance of increasing choice of buyers of insurance, and growing the market, by adapting the rules to make London a more attractive domicile for captive insurance companies.
More broadly, the LMG called for the development of a more proportionate approach to regulation that recognises the nature of the large complex risks covered in London, and the sophisticated corporate buyers the industry serves. It requested an international competitiveness duty for UK regulators, to ensure the London market retains its position as the most attractive jurisdiction for managing large risks, and for reform of the Solvency II regime.
Finally, LMG argued policymakers should promote London’s access to emerging markets, to help them build resilience against natural disasters and climate change events, through trade negotiations, regulatory dialogues and market promotion.
LMG noted the absence of captives in London, which has no specific regulatory framework for captives outside of Lloyd’s and treats them as it does other insurance companies. “There is no recognition within the UK’s regulatory system that captive insurers present a low risk to the overall financial system,” it said.