‘Insurance market in London contributes £50bn to UK economy’

The London Market contributes nearly £50 billion to the UK economy, indicating 2 percent of the overall Gross Domestic Product (GDP).

Employing 60,000 people, the world’s largest specialty insurance market is almost twice as large as its nearest competitor, and earns £126 billion in income every year, almost three quarters of which is from overseas.

These figures are among the findings of the London Market Group’s 2024 London Matters research, which reviews the size and performance of the London insurance market and gives insight on the key issues it faces today.

Sean McGovern, chairman of the London Market Group, was quoted by cirmagazine.com having commented thus: “Although the London Market remains the largest hub of direct insurance and reinsurance when compared to other centres, its rate of growth has been slower than some of its key competitors and over the last decade its market share has remained broadly stagnant. So, we cannot take our place in the world for granted.

“London has historically been a hub of innovation, developing market-leading solutions in areas like cyber. As domestic markets develop their own solutions, however, business tends to migrate from London. To maintain its status, London needs to continue to drive new product innovation in areas like green technology and to ensure it can offer the full range of risk transfer tools.

“To continue to punch above our weight there is an urgent need to create a regulatory environment that facilitates UK domiciled captives, demonstrating both at home and abroad that the market can respond swiftly and effectively.”