London Market Group unveils new post-Brexit trade priorities
The London Market Group (LMG) has unveiled a number of key priorities that it will seek to work on in order to take advantage of the new trading opportunities that may emerge in the post-Brexit environment.
LMG has called on the UK government to use its network of embassies and consulates to promote the London insurance market, and "liberalise" access to key markets such as the US, Switzerland, MENA and Latin America.
“The London Market can play a critical role in supporting the economic development of countries across the world, growing trade in existing markets and opening new ones," said Malcolm Newman, managing director of SCOR’s EMEA Hub and sponsor of the workstream to create the right business environment.
In collaboration with market participants, the LMG has identified a number of priority markets that it will seek to work on with the Treasury and the Department of International Trade. These include a potential new trading arrangement with Switzerland; maximising alignment with the US market; promoting the value of the London Market in key ASEAN economies such as Indonesia and Malaysia; and supporting the work of the Islamic Insurance Association of London to promote London’s (re)takaful offer.
Newman said: “Some of this will clearly depend on the Brexit discussions which are currently ongoing, but we feel we can make progress now using many of the existing trade fora.
"Our target markets include the US, Switzerland, ASEAN, Latin America and the MENA countries. We would like the UK Government to develop an approach to third countries that seeks to liberalise access to such markets. Using its embassies, consulates, and the many trade discussions and dialogues it is having, the UK Government can also help London to promote insurance and support the message that it helps foster sustainable economic and social development.”
Newman added: "We believe that to make the most of these opportunities, we should move the conversation on insurance away from simple indemnity and focus on how the industry can support economic growth and resilience across the world. Insurance has a positive economic impact: a 1% rise in insurance penetration translates into a 13% reduction in uninsured losses, a 22% reduction in taxpayers’ contribution following a disaster and increased investment equivalent to 2% of national GDP."
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