John Neal, chief executive of Lloyd’s of London, the world’s largest insurance market, says cyclists should consider taking out insurance to protect themselves and pedestrians.
Neil’s comments come in response to a series of serious accidents involving cyclists, which have sparked renewed debate about the need for mandatory insurance.
Neil described the idea of cyclist insurance as “not a ridiculous idea” and highlighted the importance of protecting all road users. The proposal comes after a drunk cyclist recently managed to avoid jail despite colliding with two women, leaving him with serious injuries including the loss of a finger.
Neil, a keen cyclist, shared his personal experience of falling off his bike two and a half years ago. “I know what it feels like to be hit by someone. So I think he might need some protection too,” he said. He stressed the importance of safety, adding: “I can’t understand why anyone wouldn’t wear a crash cap while riding.”
Currently, cyclists in the UK are not legally required to have insurance or register their bikes, as road laws only apply to “mechanically propelled” vehicles. However, there are growing calls for change, particularly as the government plans to introduce tougher laws targeting cyclists who cause death and injury to pedestrians. These measures were initially proposed by the previous Conservative government but were shelved before the general election.
Proponents of compulsory bike insurance argue that it would improve road safety by making cyclists more accountable and discouraging reckless behaviour, such as running red lights. Despite this, Lloyd’s, which was founded in a 17th-century coffeehouse near the River Thames, does not currently offer bike insurance. The company recently reported pre-tax profits of £4.9bn for the first half of 2024, up 25% on the same period last year.
As well as discussing cycling safety, Neil warned the Labour government against excessive tax increases and regulatory changes that could deter investment in the UK. With Chancellor Rachel Reeves expected to raise corporation tax in October’s budget to address a £22bn deficit in the public finances, Neil stressed the need for a balanced approach.
“We just want the UK to be rational, fair and competitive. From a tax point of view, we have to pay taxes, both individually and corporately. From a regulatory point of view, it is important that the markets are well monitored, looked after, supervised and managed. But we need to ensure that we can remain competitive. We need to be an attractive global offering for financial services.”