UK faces taxing issue

The growing allure of Bermuda as the location of choice for not only new capital but traditional London market insurers has served as a wake-up call to the regulator and government. Both are concerned enough about the threats to London’s competitive position to make changes to the regulatory policy and begin talking about the UK’s fiscal regime. IR&A looks at the events that are raising questions about London’s competitive position.

The London insurance market was undoubtedly rattled when it was over-looked by new capital entering insurance and reinsurance after the losses from the 2005 hurricane season. Of the £20bn+ new capital raised, none of it found its way to London and instead Bermuda became the location of choice for the new start-ups.