UK policymakers launch re/insurance regulatory review for London market post-Brexit
UK policymakers will launch a review of the post-Brexit insurance and reinsurance regulatory regime for the London market, hearing out the industry and mulling the right role for regulatory authorities.
The House of Lords Industry and Regulators Committee launched its inquiry into London market regulation for what it expects will be "a short inquiry, with a small number of public evidence sessions."
"The Committee will explore the extent to which regulatory policy is well-designed and proportionately applied and the possibilities for optimising policy following Brexit," the committee said in its call for opinions.
On the table: the regulatory role of the Bank of England and the FCA, the proportionality of their regulatory interpretations and actions, the appropriateness of regulation in content and implementation, the impact on "ease of business" and pricing, and the balance between market competitiveness and customer protection.
The London Market Group (LMG) industry lobby hailed the announcement as a long-awaited opportunity to press for a regulatory stance more supportive of the London market's global competitive position.
“This is one of the first times that Parliament has looked closely at the regulation of the London insurance market and is an opportunity to highlight the market’s value to the economy," Sean McGovern (pictured), chief executive officer of UK and Lloyd’s at AXA XL and sponsor of LMG’s government relations work, said in a comment from the organisation.
Given the "sophisticated" nature of the London market's corporate clients vis-a-vis the consumer-focus of the broader insurance market, the inquiry provides "a great opportunity to advance the case for more proportionate regulation and a better remit around global competitiveness," McGovern said.
The committee appears to start with a strong view to the industry, calling the London market for commercial and wholesale specialty risks "a world leader" offering "some of the City of London's major exports."
Market players and industry insiders have until February 11 to put forward their views.
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