A straw poll of London-based insurance brokers has revealed a marked up-tick in premium volumes flowing into London from the US this summer.
According to a survey of its members conducted by broker body LIIBA, total premiums for US property & casualty business in July 2020 were 25% higher than July 2019. In the same month, US reinsurance business were 40% higher than in July 2019.
The figures chime with a recent study by the International Underwriting Association, which showed a 26.9% growth rate for premiums coming from the US and Canada. For business controlled by the London market but written elsewhere, the IUA commented that the one-third growth rate for US/Canadian business was ‘remarkable’.
Commenting on the results, Christopher Croft, CEO of LIIBA, said: “These are fascinating figures coming from our members. They seem, on the face of it, to show that Covid-19 has led to a tightening of the US domestic market, which is increasing the flow of complex risks into the surplus lines market with London as their ultimate destination It’s a combination of more business and higher rates due to the hardening market.
“This is a vote of confidence in London and its ability to handle the more challenging risks – even during these difficult times. Importantly, it shows that our market is ready and willing to help US clients and brokers when they are depending on us for solutions.”
Last year, the US surplus lines market reported premium growth of 11.2%.
The survey of LIIBA members was conducted in August 2020.