London Market sees 'fascinating' rise in US premiums amid COVID-19

A recent survey of London-based insurance brokers has revealed a marked uptick in premium volumes flowing into the London Market from the US.

The total premiums for US property & casualty business in July 2020 were reported to be 25 percent higher than July 2019, while the US reinsurance business were 40 percent higher than in July 2019, according to the London and International Insurance Brokers' Association (LIIBA).

Meanwhile, a recent study by the International Underwriting Association (IUA) showed a 26.9 percent growth rate for premiums coming from the US and Canada.

For businesses controlled by the London market but written elsewhere, the IUA commented that the one-third growth rate for US/Canadian business was ‘remarkable’.

Christopher Croft, chief executive of LIIBA, said: “These are fascinating figures coming from our members. They seem, on the face of it, to show that COVID-19 has led to a tightening of the US domestic market, which is increasing the flow of complex risks into the surplus lines market with London as their ultimate destination. It’s a combination of more business and higher rates due to the hardening market.

“This is a vote of confidence in London and its ability to handle the more challenging risks – even during these difficult times. Importantly, it shows that our market is ready and willing to help US clients and brokers when they are depending on us for solutions.”