London’s commercial and specialty re/insurance market has doubled in size in a decade, lifting its global share to 8.7%, but the LMG warns that faster-growing rivals and an emerging talent gap could threaten its position.
The London market has reached $187bn in gross written premium, up 17% from 2022, and now accounts for 8.7% of the global re/insurance market in 2024.
That compares with $90bn in 2013, meaning the market has effectively doubled in size over the past decade, according to the latest London Matters report.
It contributes £61bn to UK GDP, up from £49bn in 2020, and represents 37% of “City” GDP, the London Market Group (LMG) reported.
Chris Lay, chair of the LMG, said: “London remains the global leader in risk transfer, demonstrated by its growth in absolute size and market share.
“Yet we cannot be complacent as, whilst much smaller than London, some other jurisdictions have grown faster in recent years.”
London remains “the market of choice” for marine, aviation and energy risks, the paper claimed, where it holds a 45% market share, as well as underwriting $5.3bn of cyber premium annually, a 23% increase from 2020.
Lay said: “To reinforce our position, the London market needs to focus on three core things: making our market an attractive place for new capital; targeting opportunities to cover new threats on the risk landscape, including AI, energy infrastructure and intangible assets, along with the continuing opportunity for growth in cyber; and, finally, investing in the quantity and quality of young talent to allow the industry to expand.
“Our data points to an alarming shortfall in this third area,” he added.
Demographic shift
The market currently employs around 61,000 people, up from roughly 59,000 in 2022.
However, the workforce is projected to require 82,200 full-time equivalents by the end of 2034, with the average age rising to 46.
“The age profile of the London Market is estimated to shift significantly over the next ten years,” said Caroline Wagstaff, CEO of the LMG.
“This is most dramatic in the under 30s, whose share of the total workforce is predicted to fall from 24% to 7% in that period. Even as the debate continues around the potential for AI and other systemic shifts in the way we work and the skills we need, this potential imbalance in our market demographic should ring alarm bells,” she said.
“In order to continue to grow, we must have talented teams in place and fully trained, and that takes time. Graduate and entry level employment needs to increase to meet demand in the next decade, but this is not being reflected in current hiring,”
In fact, graduate job postings in insurance fell 18% YoY in September 2025. This is an industry-wide problem that needs industry-wide attention,” Wagstaff added.
Capital and competition
The London Matters report also highlights the importance of alternative capital.
Since its launch in 2022, London Bridge 2 has grown at around 150% per annum to reach approximately $1.9bn of deployed capital, about 2% of global alternative capital.
London Bridge 2 was set up in 2022 as a protected cell company to enhance the accessibility of Lloyd’s for new investors, with the objective of growing institutional capital investment in the market.
Lay said: “The London Market was not present in the alternative capital space prior to 2022. While the UK ILS regime has stalled, the success of London Bridge 2 has demonstrated that London can efficiently connect investors to diversified risks.”
He added: “It is clear that the London Market needs to build on this success and do more to attract alternative capital through structures such as captives and ILS. There is a real opportunity here, and the government and regulators are crucial to the process of simplifying access, streamlining processes and promoting our market as a great home for external capital.”
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