London's insurance market is ready to tackle any competition from Bermuda - that is according to British Government Treasury minister Kitty Ussher.

The minister is quoted in leading UK business newspaper, the Financial Times, as saying the insurance sector in London requires no special tax concessions to deal with the threat of the Bermuda marketplace.

But, her comments will prove a knockback for chairman of Lloyd's of London, Lord Levene, in his bid to establish a more level playing field with Bermuda and other jurdisdictions by calling on the British government to provide a more favourable corporation tax regime.

Ms. Ussher said: "London has, and continues to have, a huge comparative advantage in terms of skills, experience and prudential requirements.

"It's growing and we can't see any reason why it won't continue to grow under the current regime."

Despite realising that Bermuda is expanding as a financial centre, a Treasury consultation believes there is little relation comparing that growth with Britain's corporation tax levels, much to the disappointment of Lloyd's, which has been campaigning for more favourable tax treatment.