Allianz UK, one of the largest insurers in the nation, is warning the government that the insurance industry is a risk of a dramatic loss in business. Britain is currently home to the third largest insurance sector in the world. However, many insurance companies that once called the UK home are now moving to Bermuda and Switzerland, hoping to take advantage of the various incentives those nations offer.
Allianz officials say that the issue is no simply what the UK has to offer insurers, but what insurers in the UK can offer the rest of the world.
Chairman of Allianz UK, Clement Booth, says that global competition needs to be a focus for Britain’s insurance groups to prosper. To this end, the UK has to come up with new ways to facilitate competition. While the nation has recently changed its tax laws so that the insurance industry could take advantage of the European Union Insurance regulations, Booth says there needs to be more leadership from politicians in making changes.
Since Allianz arrived in the UK nearly thirty years ago, Booth claims that no globally-influential insurance groups have been formed within the UK. Instead, they are being birthed in Bermuda. So far, an estimated $65 billion in revenue and nearly 10,000 jobs have been funneled into the small island.
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Booth argues that if regulations on global insurance companies operating in the nation are not loosened, Britain’s place as one of the most lucrative sectors in the world will be in jeopardy.