David Cameron will fight to ensure the regime does not put UK (re)insurers at a disadvantage
The UK Prime Minister David Cameron has again been outspoken about the impending Solvency II regime and how it will impact insurers and reinsurers in the UK.
Cameron sparked a debate earlier in the year when he described Europe’s new regulatory regime for the industry as “ill thought-out”. His comments came after The Prudential announced in March that it may move its headquarters from London to Hong Kong if the regime over penalises its US business.
Speaking at Lloyd’s on Friday, he said the UK would block any attempt from “jealous” Europeans to constrain or tax its financial services industry, reported Bloomberg.
“The threat is always there,” he said. “If I can’t get the safeguards I need for the single market, for financial services, for the things that Britain cares about, you’ve got to be quite prepared to say ‘no’.”
He was speaking during the launch of the Lloyd’s market’s 2025 Vision as it outlined its ambitions to become a major global hub for the insurance and reinsurance industry.
“I welcome the drive and ambition with which Lloyd’s is pursuing plans for where it wants to be in 2025,” said Cameron. “This is a great example of the bold and dynamic approach we need as we work to foster sustainable economic growth across the country.”
As part of its vision, Lloyd’s has a clear focus on rapidly-developing emerging markets such as Brazil, India and China.
“The essence of this strategy is to make sure that Lloyd’s becomes the true global hub for specialist insurance and reinsurance,” said Lloyd’s chairman John Nelson. “We are the only physical insurance market in the world, but the majority of our business comes from the English speaking world.”
“The challenge we have is to grow the Lloyd’s footprint into the emerging growth countries,” he continued. “To support this, we want the capital base for Lloyd’s to be more diversified, with a greater contribution coming from the high quality insurers in those growth countries.”