Lord Mayor renews City of London ties with (re)insurance market
Lord Mayor Nicholas Lyons has called for closer ties between the London (re)insurance market and the City of London Corporation, with the veteran investment banker and insurance executive noting the centuries-old institution is perfectly placed to help the sector meet its growth and competitiveness objectives.
Speaking to The Insurer on the sidelines of the Rendez-Vous in Monte Carlo, Lyons, a current board member of London-Bermuda carrier Convex and chair of Phoenix Group, acknowledged that the London P&C market has always gotten “rather short shrift” from the City of London Corporation.
And while he acknowledged that the lack of engagement was not a conscious decision by any mayor or member of the (re)insurance market, Lyons said steps were now being taken to ensure the mayoralty and the Corporation have the industry’s needs front and centre.
“Coming to the Rendez-Vous in Monte Carlo is a really good way of demonstrating the support of the City of London for the sector,” Lyons said, noting that he is already using his role as a global ambassador for UK plc to extol the role the London market can play in protecting businesses, governments and communities across the globe.
“London has a pre-eminent reputation as a leading financial centre and the reputation that Lloyd's has as a bespoke market is absolutely symbolic of that. We have a reputation for finding solutions in London, that's what we do best, and that's what the world needs us to do.”
He added: “That's why it's such an opportunity for us and that's why this is a really topical time for me to come and bang the drum for the insurance and reinsurance industry, and to be able to demonstrate that this market is a critical part of the ecosystem of our financial sector.”
Despite representing a major component of London’s financial economy, the UK insurance industry has long been woefully under-represented when it comes to residents of Mansion House, and Lyons’ presence in Monte Carlo marks the first visit by a sitting Lord Mayor to the annual industry conclave since the City of London’s formation in 1189.
Lyons – London’s 694th Lord Mayor – said the timing is significant and should be seen as the start of a renewed partnership at a time when Britain’s government and regulators are looking to bolster the UK’s economic ties.
“I believe very strongly that the UK financial services sector and London as a global financial centre is about to have a renaissance. And this is not a result of Brexit. This is because the City of London is reinvigorated to try and be as competitive as possible,” he said.
His comments follow the publication of a report last week that saw the City of London call for a new council which would allow Britain's financial sector to drive through the changes needed to boost the economy by £225bn by 2030.
The report, a joint project with Marsh McLennan-owned consultancy Oliver Wyman, said the proposed council would be chaired by the finance ministry with industry officials and regulators as members.
Led by HM Treasury and the Bank of England, Britain is currently in the process of implementing a range of financial reforms designed to cut red tape and bolster the City’s international competitiveness after its exit from the EU.
The regulatory revamp includes an overhaul of the UK’s Solvency II insurer capital regime, which the market hopes will free up capital for investment in green infrastructure and growth companies.
Lyons said the proposed body could make sure that regulators implement the much-anticipated reforms and prevent any U-turn from policymakers in the run-up to the next general election.