19th January 2022
The house of Lords Industry and Regulators Committee is today launching an inquiry into the regulation of the London Market–the UK’s commercial insurance and reinsurance market. These markets, focused on commercial and wholesale speciality risks, are world-leaders and its services are some of the City of London’s major exports. The Committee will explore the extent to which regulatory policy is well-designed and proportionately applied and the possibilities for optimising policy following Brexit.
The inquiry will consider the roles of the Bank of England and Financial Conduct Authority(FCA) and the appropriateness of regulation–the content of regulations as well as their implementation and application by regulators– elative to the risks posed by the London Market. The Committee will also assess the effects of regulation on customer interests and the market’s global competitiveness. The Committee will conduct a short inquiry, with a small number of public evidence sessions; written submissions should therefore serve as standalone items.
The London Market Group welcomed the announcement. Sean McGovern, ceo of UK and Lloyd’s at AXA XL and sponsor of LMG’s government relations work, comments “This is one of the first times that Parliament has looked closely at the regulation of the London Market and is an opportunity to highlight the market’s value to the economy. The inquiry will also allow us to work with peers and parliamentarians to show clearly the impact that regulation can, and does, have on the future success of the market.
“The London Market serves a sophisticated group of corporate global buyers, and its regulatory needs are different to more consumer-focused businesses. We launched our five-point plan in June last year, which asked for regulatory and legislative changes to enhance the London Mmarket’s competitive position, and we welcome the decision by Parliament to take a deep dive into the issues we’ve raised, via this inquiry. This is a great opportunity to advance the case for more proportionate regulation and a better remit around global competitiveness. Above all, it will help our market to serve its global clients as effectively as possible.”
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