The script for the future, confidently written in the early months of 2016, promised a decade of predictable growth and regulatory calm for London’s insurance market, a world where prevailing wisdom was the safest currency. This carefully constructed narrative, however, was destined for the shredder. What followed was not an evolution but a revolution, a ten-year period where geopolitical, technological, and societal certainties were systematically dismantled. For the London and International Insurance Brokers’ Association (LIIBA), which operates at the very heart of global commerce by underwriting the world’s most complex risks, this was more than just a series of challenges. It was a real-time test of the industry’s foundational resilience, forcing an adaptation that has been both painful and profoundly successful. This is the story of how an industry built on anticipating risk navigated a future that refused to follow any script.
When the Future Refused to Follow the Script
Looking back from the vantage point of 2026, the assumptions of 2016 appear almost quaint. The prevailing expectation was that Prime Minister David Cameron would secure a victory in the Brexit referendum, just as he had in the Scottish independence vote. Across the Atlantic, the political establishment widely dismissed the presidential aspirations of Donald Trump, anticipating a more conventional contest. Within the European Union, regulators were finalizing the Insurance Distribution Directive (IDD), a framework expected to govern UK insurance brokers for the next two decades. This collective forecast, a bedrock of strategic planning, proved to be fundamentally flawed, imparting a singular, powerful lesson for the decade: never trust wide expectations.
The subsequent years delivered a relentless cascade of unforeseen events. The United Kingdom not only voted to leave the European Union but also entered a period of profound political instability that saw five different Prime Ministers take office. The IDD, once a long-term regulatory anchor, became irrelevant to UK brokers just five years ago as EU law fell away, replaced by the domestic focus of the Financial Conduct Authority (FCA). Beyond the political sphere, the world was reshaped by a global pandemic that enforced a nearly two-year period of remote work, a major war erupted in Europe, and populist movements gained traction across the globe. Compounding this, the abstract concept of Artificial Intelligence leaped from science fiction into a tangible force poised to redefine civilization itself, presenting both existential risks and unprecedented opportunities for the insurance sector to manage.
Navigating Chaos and Forging Strategic Victories
The most immediate and intricate challenge of the decade arose from the regulatory fallout of Brexit. A fundamental conflict emerged between UK and EU regulators over the legal definition of where a cross-border insurance transaction “takes place.” This seemingly technical disagreement posed an existential threat, risking the severance of European clients from the deep expertise and vast capacity of the London market. For European corporations reliant on London for complex and specialty coverage, the potential disruption was immense, threatening their ability to manage critical operational risks. This regulatory chasm demanded an urgent and innovative solution to prevent a catastrophic market fragmentation.
In response to this critical impasse, a key strategic innovation was conceived: the “reverse branch model.” This novel mechanism was designed to create a legally compliant pathway for EU clients to continue accessing the London market. While acknowledged as a “cumbersome, ugly and expensive” solution, it served as a vital lifeline, ensuring the uninterrupted flow of business and allowing European enterprises to secure the specialized insurance they could not find elsewhere. The creation of this model stands as a testament to the market’s problem-solving capacity, though the ambition remains to replace it with a more elegant and efficient framework built on improved regulatory cooperation between the UK and EU, a key goal for the coming years.
Amidst these external pressures, the London market also achieved a monumental internal triumph in modernization. The journey of Placing Platform Limited (PPL), the market’s electronic trading solution, exemplifies this progress. From its humble origins—an initial application as “Insurance Platform Limited” was rejected for using the word “insurance” without FCA approval—the platform faced a difficult infancy. Its early years were characterized by a constant scramble for funding to keep the company afloat and a concerted effort to persuade a traditionally-minded market to embrace digital adoption. Today, that fledgling startup has transformed into the dominant market utility. An overwhelming majority—over 80%—of risks written in the London market are now bound on the platform, a statistic that underscores a profound operational shift. This success has not only solidified PPL’s role but also catalyzed a competitive ecosystem of electronic trading solutions, marking a special achievement in the market’s long-term modernization journey.
The Unsung Expertise at the Heart of the Market
Beyond the strategic battles and technological advancements, the enduring strength of the London market is rooted in its people. A retrospective of the decade reveals a deep affection for the “brilliant but equally lovely people” who populate the LIIBA executive team, board, and wider membership. The true value proposition of London lies in the extraordinary, often unseen, expertise that professionals bring to crafting bespoke risk management solutions. This is an industry where deep, niche knowledge is not just an asset but a necessity for protecting clients from complex and evolving threats.
This specialized expertise is best illustrated through compelling real-world examples. One such anecdote involves a LIIBA chair who possessed a “disturbingly detailed knowledge” of how to construct a fertilizer bomb. This was not for any nefarious purpose but because his client operated a fertilizer warehouse, and understanding the worst-case scenario was fundamental to preventing it. This level of granular insight is what distinguishes the commercial insurance sector. The industry’s impact is broad and surprisingly integrated into the cultural and economic fabric. Brokers have played indispensable roles in enabling the iconic Glastonbury festival, facilitating the complex repurposing of offshore oil rigs into sustainable energy hubs, and even acting as a “key cog” in the production of the popular television show Real Housewives of Cheshire. These examples challenge the staid perception of insurance, revealing it as a dynamic and glamorous industry essential to entertainment, energy transition, and global events.
Forging Alliances and Influencing Policy
Navigating the complexities of the past decade would have been impossible without the power of collaboration and strategic alliances. LIIBA’s international affiliations proved to be exceptionally valuable. The support and leadership from BIPAR, the European Federation of Insurance Intermediaries, were instrumental in maintaining a functional and constructive relationship with the EU in the tumultuous years following Brexit. Similarly, access to global peers on the Executive Committee of the World Federation of Insurance Intermediaries (WFII) provided a critical resource for resolving countless queries related to overseas regulations, allowing the association to truly live up to the “International” component of its name. These global networks formed an essential support system, providing insight and leverage in an increasingly fragmented world.
Concurrently, the relationship with the UK government has undergone a dramatic transformation. In 2016, the London market was largely invisible to policymakers in Westminster. A turning point came with the influential London Matters report, which began the long process of educating the government on the sector’s significant contribution to the UK economy. Over the past ten years, a concerted and persistent effort has successfully raised the profile of commercial insurance. The crucial breakthrough has been achieved: the government now has “heard of” the sector. This initial awareness represents a major victory, laying the groundwork for a more sophisticated and impactful dialogue about the market’s role in a post-Brexit global Britain.
An Agenda for Innovation and Future Growth
With awareness now established, the next crucial phase of government engagement has begun, shifting from recognition to deep education. The primary objective is to help policymakers understand not just that the market is important, but how it works, what makes it globally competitive, and what specific actions can support its continued success. The recently published Innovation Imperative: why brokers matter more than ever report is designed as a key educational tool to drive this next stage of engagement. It provides a clear blueprint for how the government can partner with the industry to foster an environment that encourages innovation and reinforces London’s position as the world’s leading insurance hub.
This forward-looking agenda is also focused on tangible regulatory improvements. A primary ambition is to render the “reverse branch model” obsolete by fostering a new era of goodwill and pragmatic cooperation between UK and EU regulators. The goal is to replace the current cumbersome system with a more streamlined and efficient solution that benefits clients on both sides of the Channel. Furthermore, the future of market modernization is centered on leveraging the successes of PPL. With its vast repository of collective market data, the platform holds immense potential. The exploration of “pretty exciting” ideas to unlock this data for enhanced risk analysis, product innovation, and market insights represents the next frontier in the industry’s digital evolution.
The decade from 2016 to 2026 was one of relentless challenge, a period that tested the resolve and adaptability of the entire London market. Yet, through strategic innovation, unwavering expertise, and powerful collaboration, the industry not only endured the tumult but emerged stronger and more modern. It was a decade of defiance and progress, a testament to the resilience of an industry that underpins global commerce. Reflecting on the period, with all its shocks and successes, one could borrow the understated assessment of former U.S. President Ronald Reagan in his final address: “All in all, not bad. Not bad at all.”
