London’s portion of global reinsurance premiums has shrunk once more with growing competition and protectionist trade policies the main reasons for the decline.
A report commissioned by the London Market Group (LMG) showed that London’s total ownership of global premiums were 12.3% in 2015 down from 13.4% in 2013 and 15% in 2010. The report did also highlight that London remained a world leading commercial insurance market within the UK insurance industry growing its market share in the traditional markets of specialty.
Areas identified as growing their global shares of premiums were Zurich, Bermuda and Singapore. During the period 2013 to 2015 the report found that there had been a growth in emerging market reinsurers and Bermuda as centres for alternative reinsurance capital. Singapore saw its global premium share increase 6.9% over the two year period.
The report concluded that the globalisation of carriers and the willingness of some London underwriters to walk away from risks they saw as having too low margin were reasons for the fall of London’s share.