London Market Group (LMG) said that while the size of the London market has doubled over the past decade to a global warming potential (GWP) of $187 billion, contributing £61 billion to UK GDP, some smaller jurisdictions have reportedly grown faster in recent years, highlighting the need for new capital, high-quality young talent and technological innovation to seize emerging opportunities.
Commenting on the new London Matters 2026 data, which assesses the size and performance of the London insurance market, LMG Chairman Chris Lay stressed that focusing on these three priorities is vital to strengthening the market’s global position.
“London remains a global leader in risk transfer, as evidenced by its absolute size and growth in market share. However, we cannot be complacent as some other jurisdictions, despite being much smaller than London, have grown faster in recent years,” Ray observed.
Regarding the need for new capacity from multiple sources to underwrite rising risks and help close the protection gap, LMG noted that London Bridge 2 has grown approximately 150% annually since its launch in 2022, with deployed capital reaching approximately $1.9 billion, accounting for approximately 2% of global alternative capital.
“Prior to 2022, the London market did not exist in the alternative capital space. While the UK ILS regime has stalled, the success of London Bridge 2 shows that London can effectively connect investors to diversified risks,” Lay said.
He continued: “It is clear that the London market needs to build on this success and do more to attract alternative capital through structures such as captives and ILS. There are real opportunities here and government and regulators are vital to simplifying access, streamlining processes and promoting our market as a good home for external capital.”
LMG also said further market growth will come from the consolidation of London’s position in traditional risk areas and its record of innovative thinking.
The trade body explained that London remains the leading center for marine and aviation insurance, with a 45% market share, and accounts for nearly 20% of the property market.
At the same time, it has reportedly become Europe’s largest cyber insurance hub, with more than 800 companies offering cybersecurity products and services, an increase of around 30% since 2022.
Looking ahead, with renewables accounting for around 20% of total energy use by 2030, premiums in this sector in the London market could grow by as much as $800 million between 2024 and 2030.
Finally, the rapid development of AI capabilities is said to provide the market with an opportunity to better understand emerging risks and create new products to address the changing risk exposures of insureds.
Commenting on how staff and talent shortages are becoming increasingly acute, LMG CEO Caroline Wagstaff commented: “The age structure of the London market is expected to change significantly over the next decade. This is most noticeable among the under-30s, whose share of the total workforce is expected to fall from 24% to 7% over this period.”
“While debate continues around the potential of artificial intelligence and other systemic shifts in the way we work and the skills we require, this potential imbalance in our market demographics should set off alarm bells.
“To continue to grow, we must have great teams and be adequately trained, and this takes time. Graduate and entry-level employment will need to increase to meet demand over the next decade, but this is not reflected in current recruitment. In fact, graduate job postings in the insurance industry were down 18% year-on-year in September 2025. This is an industry-wide issue that requires industry-wide attention.”
Michael van der Straaten, chief executive of insurer Antares, who attended today’s data launch alongside finance minister Lucy Rigby and LMG chief executive Wagstaff, reflected on the company’s own experience of market talent, saying: “As a mid-sized London market company, we feel these talent pressures every day. Experienced staff are harder to find, but the real risk is the growing gap in graduate and graduate recruitment.
“At Antares we have seen first-hand the importance of early career talent and have been very proactive in finding and hiring the best graduates and graduates. Without continued investment in nurturing new entrants, we risk limiting our own growth and the long-term strength of the London market.”
“London Matters also shows the huge growth trajectory of specialist insurance as a sector within the City of London. In ten years we have gone from accounting for less than a quarter of London’s GDP to over a third.
“We are growing faster than every other industry in financial services, yet we are taking on far fewer graduates and apprentices. Imagine how much more we could grow if everyone in the industry focused on bringing in the best talent from all sources to help us lead the City and the world in this area.”
