My Lords, I am very grateful to be able to speak in the gap. The UK’s accession to the CPTPP is a golden opportunity to usher in a new era of trade relations in some of the world’s more dynamic and fast-growing economies. This Bill is to be welcomed.
I will focus on the specialty insurance sector, and I refer to my interest as an employee of Marsh, as stated in the register. Without insurance, much of this trade would not be able to happen. The capital which comes into the London market of specialty insurance and reinsurance is highly international and highly mobile. Almost 70% of it is foreign owned and 85% of market income is earned by companies domiciled outside the UK.
Now, at the advent of this new trading frontier, is the time to consider what more government, regulators and industry could do together to both access these fast-growing markets and encourage and welcome investment from these countries to the UK. The UK has a unique offer to CPTPP nations, many of which are at heightened risk from natural disasters and other risks. We are the only market that has the concentration of capital and expertise to protect nations against existential threats to their economies and people. Our offer is not replicated anywhere else in the world.
The financial regulators were given an international competitiveness objective within the Financial Services and Markets Act. CPTPP membership now offers us the chance to put theory into practice, but this will happen only if the financial regulators play an active role in deepening the UK’s relationships with our CPTPP partners, co-ordinating with regulators and businesses to promote cross-border trade.
What the industry would like to see is a welcome mat, as described by my noble friend Lord Holmes and alluded to by the noble and learned Lord, Lord Goldsmith: a dedicated and joined-up function within government that can create a coherent and co-ordinated pathway—a one-stop shop—for overseas investors wanting to come to the UK, set up businesses, create jobs and invest across the country. This is not some untried and untested idea; many of our closest competitors have teams with similar arrangements, including the Bermuda Business Development Agency and the Monetary Authority of Singapore. My home was in Ireland originally, where its foreign direct investment agency is making notable progress in encouraging high levels of inward investment and consequent employment—modest, maybe, by UK standards, but very important to Ireland.
Business as usual is no longer good enough. Let us seize the opportunity as the first new joiner of this dynamic trading bloc to welcome new and emerging economies to industries such as the London insurance market and show them exactly why we are a world leader in risk. I therefore ask my noble friend the Minister two questions. First, will he comment on what discussions he is having with UK regulators and what expectations he is setting about the role they will play within CPTPP structures to encourage cross-border trade in financial and professional services as our relationships within the bloc deepen? Secondly, will he
look at how we can build this welcome mat approach, as it will require cross-departmental working between his department and others?
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