Malcolm Newman from SCOR and the Chairman of the IUA made many excellent points when addressing “London Matters – one year on” at ITC 2015 in London. One I want to highlight is his reference to regulation, and to trade barriers in particular.
Business tends to be against trade barriers as a default position. But Malcolm reminds us insurance has very specific reasons for opposing them. Trade barriers restrict the risk pool. This reduces value for everybody and distorts the market. The collaborative underpinning of insurance – the sharing of risk – is undermined by unnecessary trade barriers.