The participants of the London Market Group (LMG) and HM Treasury industry task force that has been established to look at progressing initiatives to make London a more attractive hub for catastrophe bonds and ILS, have been revealed.
Following the first meeting of the task force, the LMG has revealed who is participating in the group to work with the UK government on making London a more attractive place for the growing insurance and reinsurance linked securities (ILS) market to do business.
London has an opportunity to attract more of the ILS, catastrophe bond and collateralized reinsurance business to its shores. This task force has been set up to look at what London could do that might differentiate it and help to ultimately grow its share of the ILS business.
It is to be hoped that the work will also look to grow the overall ILS and collateralized reinsurance market, rather than simply hoping to win business from offshore. As Artemis wrote recently, the task force is an opportunity for the UK to think bigger on ILS.
According to the LMG, the group will assess potential changes to tax, regulatory and company law regimes that could help to make the UK a more attractive domicile for ILS business and managers.
Initially, the task force will target the production of a series of recommendations that might be included in the UK Chancellor’s Autumn Statement later this year.
Malcolm Newman, CEO of SCOR’s Paris/London Hub, who is sponsoring the work on behalf of London Market Group (LMG) commented; “Our research – London Matters – highlighted the extent to which London’s role as the global centre of excellence for specialty insurance is under question. In part, our research showed, this is because we are losing our reputation for innovation.
“ILS is very much the innovative end of our industry. It is vital for London’s future therefore that we ensure that the expertise surrounding these vehicles is attracted to be part of our unique cluster. We are delighted that the government is joining us in this work. We need to do all we can to ensure we have the right business environment in the UK to allow ILS to prosper here.”
Harriett Baldwin, Economic Secretary to the UK Treasury and City Minister, added; “The Government recognises the vital contribution the London Insurance Market makes to UK GDP and to our export strength. The Government will do what it can to support growth in this area of our economy. We look forward to working with the London Market to develop a regulatory and tax structure which will achieve this.”
The current task force membership has been revealed as:
- Malcolm Newman, Scor, Chair.
- Christopher Croft, LMG Secretariat, Secretary.
- Michael Wade, Crown Representative, Insurance, Government.
- Des Potter, Guy Carpenter, Broker.
- Chris Parry, Aon Benfield, Broker.
- Paresh Thakrar, Hiscox, Insurer.
- Rob Procter, Securis, Fund Manager.
- Joanna Buckenham, Lloyd’s, Association.
- Dave Matcham, International Underwriting Association of London, Association.
A number of UK government representatives will also attend the meetings as observers:
- Lee O’Rourke, HM Treasury.
- Michael Stark, HM Treasury.
- Alison Walters, FCA.
- Ishtiaq Faiz, PRA.
The ILS task force group is also being advised by PwC and Clifford Chance.
It’s encouraging to see the level of transparency, as the LMG reveals the participants. It’s also encouraging to see some names involved who are instrumental in the London and European ILS market, both from brokers on the structuring and issuance side, as well as investing with the participation of Securis.