UK Insurance Industry Post Brexit – Maintaining Our Competitive Edge
15 February 2018- by Laura Gifford
We all continue to debate and speculate about what will happen post Brexit. For the UK insurance industry there is a great deal to be positive about.
Insurance is one the of the UK’s great export success stories and holds an important position globally as a leading insurance market. It contributes over £60bn to the economy. We are the largest hub for commercial insurance in Europe with in excess of £8bn of premiums flowing from the EU to the UK. In addition, £13.9bn of London insurance market premiums emanate from the US.
This important place on the global insurance stage will continue for the UK because of many important components that combine to create its competitive advantage. Let’s briefly examine three of the most important.
The UK continues to face strong competition on the global insurance stage. All of the insurance hubs across the world have regulators with duties to actively support the promotion of their local insurance markets.
The UK has led the world in the development of insurance regulation. By ensuring that we continue to lead the world in regulation we will help ensure that we continue to be seen as a safe pair of hands, especially when it comes to trade agreement negotiations with key insurance markets across the globe. Overcoming restrictions in certain economies on the amount of insurance that can be purchased from overseas providers is as much in the UK industry’s hands through global governance leadership as it is for Government negotiated trade deals to address.
The UK has always been a leader in terms of insurance product innovation. For example, cyber insurance has been a leading light in the London market in recent times. This is not only because of growing business awareness of its importance, but also because the UK market has developed sophisticated cyber products geared to client needs, such as swift breach response and comprehensive third-party cover.
The UK insurance industry is actively engaging with its high-flying tech start-ups to create disruptive innovation. The UK is making huge advances to both revolutionise the insured’s customer experience and to utilise technology to improve risk management. Recently, Lloyd’s of London have openly committed to pushing forward with electronic placement to further ensure efficiency reducing costs and ultimately improving customer service.
By continuing to be a market leader in product innovation, governance and new technology, the insurance sector can continue to attract foreign investment and remain one of the major powerhouses of the United Kingdom post Brexit.
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Source: Lloyd’s of London/Bloomberg