North America had replaced the UK and Ireland as the London Market’s biggest source of income ahead of the coronavirus pandemic, according to an updated version of the London Market Group’s London Matters report. The news comes as the US heads towards the largest recession in its history as a result of COVID-19.

The report, produced in partnership with consultancy McKinsey, details London’s position in the global re/insurance industry between 2010 and 2018.

The report shows that London remains the largest global re/insurance hub and that the gap between London and the total amount written in Bermuda, Switzerland and Singapore widened from US$16bn in 2015 to US$23bn in 2018. The report also shows that whilst the size of the global specialty market declined by 10% between 2010 and 2018, the London market grew its share despite pricing and profitability challenges.

Matthew Moore, LMG chair commented: “This report finds the London Market in good shape. Nevertheless, some of the underlying challenges from the first London Matters report in 2014 remain. Our share of reinsurance business is shrinking, our share in emerging markets remains small, we need to replace an ageing workforce and there is more work to do on closing the gender pay gap.”

In terms of the coronavirus pandemic Moore added: “However, the effects on market structure, products, processes and working practices caused by the COVID-19 crisis are likely to be profound and long-lasting.”

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