Carney: UK is ‘investment banker for Europe’

The governor of the Bank of England has repeated his calls for a “smooth and orderly” UK exit from the EU, saying that a transition out of the bloc will happen, it was just a case of “when and how”. Responding to the BoE’s latest bank stress tests, where lenders overall emerged with more resilient […]

Continue Reading


China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

Continue Reading

Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

Continue Reading


Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

Continue Reading


China stock market unfazed by falling renminbi

China’s renminbi slump has companies and individuals alike scrambling to move capital overseas, but it has not damped the enthusiasm of China’s equity investors. The Shanghai Composite, which tracks stocks on the mainland’s biggest exchange, has been gradually rising since May. That is the opposite of what happened in August 2015 after China’s surprise renminbi […]

Continue Reading

Categorized | Insurance

Insurers want a voice in Brexit talks

Posted on June 30, 2016

Lloyds of London for the big page. Underwriters and brokers cut deals on the trading floor at Lloyds where face to face negotiations still rule.

Underwriters and brokers cut deals on the trading floor at Lloyds

The insurance industry is stepping up its lobbying efforts to prepare for Brexit as it faces losing business to other parts of the EU.

John Nelson, chairman of London’s commercial insurance market, Lloyd’s, met the prime minister’s business advisory group on Thursday and will speak to Sajid Javid, the business secretary, next week in an effort to push the industry’s case.

    The London Market Group, which represents insurers and brokers in the commercial market, is also meeting parliamentarians.

    The industry is keen to make sure its voice does not get lost in the clamour of groups pushing their case ahead of the exit talks.

    Financial services are expected to play a big role in the negotiations, but insurers are concerned banking will dominate.

    “We’re all singing in the same choir, but our harmonies are slightly different,” said Huw Evans, director-general of the Association of British Insurers this week.

    “We need to recognise that there are sector specific issues, not just generic financial services sector issues,” he added. One of those specific issues is regulation of the insurance industry. Mr Evans believes there is scope for regulators to help UK insurers become more competitive.

    Lloyd’s, which campaigned for a Remain vote, has outlined its plans as it prepares for life outside the EU. In meetings with the insurers that operate in the market, chief executive Inga Beale laid out a twin-track approach.

    Lloyd’s is campaigning to retain “passporting rights” — which allow insurers to operate across the EU — but is also putting in place plans for how the market can operate in the continent if those rights are lost.

    Lloyd’s says that only about 4 per cent of its £27bn worth of annual premiums are at risk because of Brexit. It has been keen to stress that policies written before any formal exit — including multiyear policies — would remain valid.

    The commercial insurance market is a big part of the City’s economy. According to London Matters, a 2013 report, it employs 34,000 people and contributes about a fifth of the City’s gross domestic product. Many of the big insurers who have set up shop in London have done so because of the UK’s passporting rights into the EU.

    Without those rights, insurers say they would have to set up new operations within the EU. An executive at one insurer says that his company might be forced to send up to two-fifths of its London workforce to other cities over the next five years.