The London Market Group, the trade body for the specialty (re)insurance industry in London, has today published its 2026 London Matters data. which reviews the size and performance of the London insurance market and highlights the key issues that it faces today.
Chris Lay, Chair of the London Market Group, commented: “London remains the global leader in risk transfer, demonstrated by its growth in absolute size and market share. Yet we cannot be complacent as, whilst much smaller than London, some other jurisdictions have grown faster in recent years.
“To reinforce our position, the London Market needs to focus on three core things: making our market an attractive place for new capital; targeting opportunities to cover new threats on the risk landscape, including AI, energy infrastructure and intangible assets, along with the continuing opportunity for growth in cyber; and, finally, investing in the quantity and quality of young talent to allow the industry to expand. Our data points to an alarming shortfall in this third area.”
People and talent shortages become critical
The London Market employs c.61,000 people, 67% based in London – up from c.59,000 in 2022.
The London Market workforce is expected to require 82,200 FTEs by the end of 2034.
The workforce is ageing, with the average age expected to increase to 46 years in 2034.
Caroline Wagstaff, CEO of the London Market Group, said: “The age profile of the London Market is estimated to shift significantly over the next ten years. This is most dramatic in the under 30s, whose share of the total workforce is predicted to fall from 24% to 7% in that period. Even as the debate continues around the potential for AI and other systemic shifts in the way we work and the skills we need, this potential imbalance in our market demographic should ring alarm bells.
“In order to continue to grow, we must have talented teams in place and fully trained, and that takes time. Graduate and entry level employment needs to increase to meet demand in the next decade, but this is not being reflected in current hiring. In fact, graduate job postings in insurance fell 18% YoY in September 2025. This is an industry-wide problem that needs industry-wide attention”.
Targeting new and developing opportunities
Market growth will come from the consolidation of London's position in traditional risks as well as from its track record for innovative thinking. London remains the leading centre for marine and aviation with a 45% market share, and just under 20% of the property market.
The London Market is already the largest cyber insurance market in Europe, with over 800 firms providing cybersecurity products and services, a c.30% increase from 2022.
Renewables as share of total energy use will rise to c.20% by 2030. This could increase London Market renewables premiums by up to c.$0.8bn between 2024 and 2030.
Finally, the rapid development of AI capabilities presents an opportunity for the Market to understand the risks and create new products that address insureds’ new exposures.
New capital is needed to provide capacity and support growth
The London Matters data identified a need for diverse sources of new capacity to underwrite the growing level of risks and help bridge protection gaps. Since its launch in 2022, London Bridge 2 has grown at c.150% per annum to reach c.$1.9bn of deployed capital (c.2% of global alternative capital).
Chris Lay, Chair of the London Market Group, said: “The London Market was not present in the alternative capital space prior to 2022. While the UK ILS regime has stalled, the success of London Bridge 2 has demonstrated that London can efficiently connect investors to diversified risks.”
“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 is a real opportunity here, and the government and regulators are crucial to the process of simplifying access, streamlining processes and promoting our market as a great home for external capital.”
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