Cyclists should consider insurance to increase their safety, says Lloyd’s boss

According to John Neal, chairman of Lloyd’s of London, the world’s largest insurance market, cyclists should consider taking out insurance to protect themselves and pedestrians.

Neal’s comments come in response to a series of serious accidents involving cyclists and have sparked renewed debate about the need for compulsory insurance.

Neal described the idea of ​​insurance for cyclists as “not such a stupid idea” and stressed the importance of protecting all road users. The proposal comes after a drunken cyclist recently avoided a prison sentence despite hitting two women, resulting in serious injuries including the amputation of a finger.

Neal, who is an avid cyclist himself, shared his personal experience of being knocked off his bike two and a half years ago. “I know what it’s like to be hit by someone, so I think you could use a little protection too,” he noted. Stressing the importance of safety, he added, “I can’t understand why someone wouldn’t wear a helmet when riding a bike.”

Currently, cyclists in the UK are not legally required to carry insurance or register their bikes, as the Highway Code only applies to ‘mechanically propelled’ vehicles. However, there are growing calls for a change, particularly as the Government plans to introduce tougher laws for cyclists who are responsible for the death or injury of pedestrians. These measures were originally proposed by the previous Conservative Government, but were shelved ahead of the general election.

Supporters of compulsory bike insurance argue that it would improve road safety by holding cyclists accountable and discouraging reckless behavior, 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 pretax profits of £4.9 billion for the first half of 2024, up 25% on the same period last year.

As well as talking about cyclist safety, Neal warned the Labour government against excessive tax increases and regulatory changes that could hamper investment in the UK. With Chancellor Rachel Reeves expected to increase corporate taxes in the upcoming October Budget to address a £22 billion deficit in the public finances, Neal stressed the need for a balanced approach.

“We just want the UK to be sensible, fair and competitive,” he explained. “From a tax perspective, we should pay taxes, both individually and as a company. And from a regulatory perspective, it’s important that the markets are monitored, maintained, well supervised and managed. But we need to make sure we can remain competitive. We need to be an attractive proposition for financial services globally.”