How to retain London’s position as the world’s leader in risk

Across industry conversations over the last year – whether at conferences, in meetings, through discussions with market participants (or in Insurance Post!) – one question has come up time and again: how does the market deliver growth as conditions begin to soften?

As rates begin to ease, achieving top-line growth inevitably becomes more challenging. At the same time, those conditions can enhance London’s appeal to global clients reassessing where and how they place risk. 

That increased attractiveness matters, but it does not automatically translate into growth. To convert opportunity into sustained momentum, London must continue to evolve, becoming faster, more efficient and more closely aligned with client needs – which, arguably, has not been at the heart of its core skillset in recent years.

This creates both a challenge and an opportunity as the market looks ahead to 2026.

Significant progress has been made over the past quarter century. London has moved from paper-based processes to predominantly electronic placement and claims, with data and modelling now central to underwriting decisions.

Christopher Croft, London and International

Brokers sit at the centre of that equation, connecting clients with capital, shaping solutions and enabling risk transfer across borders. 

Liiba’s focus for the year ahead is therefore built around two priorities: reinforcing London’s position as the leading market for complex risk, and ensuring it is equipped to respond to the next phase of global demand.

Vision vacuum

The first priority is grounded in how the market operates in practice. Clients increasingly expect access to London capacity to be straightforward and efficient, while still benefiting from the depth of expertise that defines the market.

Significant progress has been made over the past quarter century. London has moved from paper-based processes to predominantly electronic placement and claims, with data and modelling now central to underwriting decisions. 

Even so, it would be difficult to argue that the market has fully realised the vision of a seamlessly digitised trading environment.

With Blueprint Two now ‘sunsetted’, there is an opportunity to reflect on the lessons of the past 25 years. 

Large, cross-market programmes have often struggled to deliver at pace, competing with firms’ day-to-day priorities for scarce specialist resource. 

Whatever form the next incarnation takes, it should absolutely consider smaller, modular builds, clearer commercial incentives and governance that drives delivery rather than delay.

Throughout the remainder of the year, Liiba will lead a broader discussion about what digital trading should look like in practice. 

That conversation must be shaped by the traders directly involved in placing risk as too often attention has focused on technology and operations, rather than how risks are introduced, negotiated and bound.

At the same time, not every aspect of trading can or should be digitised. 

London’s strength lies in its ability to handle complex and nuanced risks, and while some placements may lend themselves to digital execution, others will continue to rely on human expertise and interaction.

London’s role

The second pillar of Liiba’s agenda centres on innovation and London’s role in addressing emerging risks that increasingly dominate boardroom discussions.

As set out in Liiba’s report, Innovation Imperative – why brokers matter more than ever, a key barrier to progress is mobilising capital for new and unfamiliar risks. 

In the absence of historical data, the default response has too often been exclusion rather than solution. That approach does little to support clients or drive growth and must change.

The global risk landscape is evolving rapidly. Cyber incidents carry significant financial consequences, extreme weather events are increasing in both frequency and severity, and intangible assets now account for the majority of corporate value. 

At the same time, geopolitical tensions are reshaping global trade, brought into sharp focus by recent developments in the Middle East.

These are precisely the types of risk where London has both the expertise and the opportunity to lead.

Delivering on that opportunity will require closer collaboration between brokers, carriers and clients, alongside a willingness to approach risk differently. 

During 2026, Liiba will develop a framework to support innovation and enable capital to engage more confidently with emerging risks, building on the recommendations set out in Innovation Imperative.

Regulation critical

Regulation and public policy will play a critical role in shaping the market’s ability to deliver on these ambitions. 

If a clear vision for digital trading is to be established, the regulatory environment must support its implementation.

Recent moves by the Financial Conduct Authority to distinguish more clearly between consumer and commercial business are welcome. 

However, this must be reflected in a proportionate supervisory approach. Firms operating in the wholesale market present limited risk to UK consumers, and regulatory engagement should recognise that.

International engagement will also remain a priority. Liiba has already shared its work on innovation with organisations such as the International Association of Insurance Supervisors, Organisation for Economic Co-operation and Development and European Commission, and will continue to build on those relationships. 

In an environment of increasing protectionism, ensuring that capital, expertise and risk solutions can move freely across borders is essential.

There is also significant potential for closer collaboration with government. 

Brokers have a clear role to play in supporting major projects, facilitating trade and improving the use of insurance across the public sector. Strengthening these relationships will form an important part of Liiba’s work.

Growth in a softening market will not be straightforward, but London has consistently demonstrated its ability to adapt. By combining expertise, innovation and openness, it has maintained its position as the market where the world comes to place its most complex risks.

Liiba’s focus for 2026 is to ensure that continues.