Media Release 8 September 2023
LONDON COMPANY MARKET PREMIUM INCREASES TO £44BN
Total premium income for the London company market in 2022 was £44.071bn, a new report by the International Underwriting Association (IUA) has revealed. The figure represents an increase of around one quarter on the previous year when an aggregate of £35.654bn was recorded.
The overall intellectual and economic premium for 2022 comprises £37.626bn written in London (up from £30.114bn in 2021), plus a further £6444bn (£5.540bn in 2021) written in locations outside the City, but overseen and managed by London operations.
The latest annual edition of the IUA’s London Company Market Statistics Report includes significant enhancements to provide a more detailed analysis of activity in the sector. New lines of business, such as commercial crime, specie and surety have been added to the research. There is also a new breakdown of marine premium.
Premium growth has been largely driven by inflationary price increases, but new business acquisitions following investments in underwriting talent have also been important. The invasion of Ukraine has led to risk-adjusted price increases in certain classes such as political violence, but has also reduced income for other accounts due to a cessation of Russian-exposed business.
Dave Matcham, Chief Executive of the IUA, said: “Our research this year once again provides concrete evidence of a thriving and unique community of insurers and reinsurers. IUA members continue to grow their operations across a wide range of business classes and geographies.
“This report shows the full extent of international speciality and wholesale coverage provided by companies in London. The income generated by such firms is significant, and an important contributor to the UK economy.”
Property remains the largest class of business for premium written in London, accounting for 27% of the company market total. Liability and professional lines business each account for a further 15%. Both property and marine premium grew significantly in 2022, the former by a quarter and the latter by a third. Other notable growth rates were observed in professional lines and cyber.
North America is an increasingly important source of business for London companies, generating overall premium of £9.454bn in 2022, up from £7.207 the previous year.
For a full breakdown of premium statistics, copies of the London Company Market Statistics Report 2022 are freely available to download from the IUA’s website here.
Ends
Contact:
Scott Farley
Director of Communications
International Underwriting Association
Telephone: 0207 617 4449
Mobile: 07921 699218
E-mail: scott.farley@iua.co.uk
Notes to Editors:
About the IUA
The International Underwriting Association of London (IUA) is the representative body for companies in London providing international and wholesale insurance and reinsurance coverage. Its mission statement is to secure an optimal trading environment for London insurance companies.