US tech giant Google is reportedly in talks to participate in the City’s insurance and reinsurance market via a captive.
The tech giant, it was reported by The Insurer , is said to be looking for approval to establish a captive via Lloyd’s captive syndicates. It was also noted that managing agent Apollo was involved in these discussions.
There are several ways to participate in the Lloyd’s market including to be managed by a managing agent, establish a special purpose arrangement (SPV), become a syndicate or join its captive.
Lloyd’s published a guide on its captive syndicates for applicants back in January 2023, where it was noted that application fees are £100,000.
This framework allows companies to operate a captive within the world’s oldest speciality insurance market.
Lloyd’s outlined the benefits of being a member of its captive syndicates which includes the use Lloyd’s international underwriting permissions. This includes the ability to underwrite direct insurance in 80 countries and to use fronting partners where Lloyd’s does not have insurance permissions.
On the news of Google, the company, Apollo and Lloyd’s were contacted for comment. Lloyd’s declined to comment.
Elsewhere, the UK insurance industry has urged the Government to adopt a lighter regulatory regime for captive insurance companies to fill the gap in London’s specialist insurance market. It came after London Market Group research found lighter-touch regulations could see almost 700 captive insurers either moved onshore, from jurisdictions such as Guernsey and Bermuda or set up in the UK.
Jeremy Hunt, the Chancellor, announced in his Autumn Statement that the Government plans to consult on a new framework to encourage the establishment of captive insurance companies in the UK this Spring.