Regulatory changes resulting from the UK’s withdrawal from the European Union will threaten nearly half of the premium currently written in London, according to the International Underwriting Association (IUA).
The industry body’s
London Company Market Statistics Report revealed that gross premium written in London totalled £15.15 billion in 2015.
Another £6.49 billion was written in other locations but was overseen by London operations, the report said.
Of the premium currently written in London, £7.33 billion will potentially be directly affected by a change in rules governing UK participation in the EU single market and its financial services passporting regime.
The amount includes £1.36 billion of European premium written in London by firms which are either headquartered in the UK or are using their London office to access EU business.
It also comprises £5.97 billion of international business written in London by firms with a parent company or principle European base located elsewhere in the EU.
The IUA figures highlight the importance of an open trading relationship between Europe and the London market, according to Dave Matcham, chief executive of the industry body.
“It is vital that a level playing field is maintained, so that companies can operate freely without any need for local licences, regulatory collateral obligations or other special requirements,” he said.
“The arrangement must be reciprocal,” Matcham added.
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