The City of London and Bermuda should work together to grow the insurance-linked securities market, an expert said.

Steve Evans, who owns the respected specialist online magazine Artemis, said that accusations by Inga Beale, the CEO of Lloyd’s of London, that Bermuda “stole” the market from London were unhelpful.

Mr Evans wrote: “The London insurance and reinsurance market is perhaps the origin of risk transfer business models and therefore it is natural that ILS or capital market investor-backed insurance and reinsurance be underwritten and transacted there.

“But through collaboration with the likes of Bermuda, surely London can leverage what is done so well in other domiciles, while focusing on doing something really well that brings it revenue and also offers a chance for the likes of Bermuda to broaden its offering in turn, by leveraging London?”

Mr Evans added: “Bermuda has been highly successful in ILS and catastrophe bonds for over a decade, with a longer history in catastrophe reinsurance and insurance generally.

“Meanwhile, London has a huge platform, deep experience and global reach, with the highest degree of insurance and reinsurance specialism around.

“There are clear opportunities for the two markets to work closely together for the greater good of each other, the broader risk transfer market and society as a whole.”

And he said: “In our opinion, it would be considerably better for the ILS market if a collaborative approach was taken as that will drive greater market growth, ultimately benefiting all global players.”

London and other jurisdictions should look to bring “something new or different” to the ILS market, he added, rather than just copying Bermuda in a bid to claw back business from the island.

“Technology now provides an opportunity for others to come along and through innovation offer new ways for risk and capital to be connected, ways which may not depend on geography or domicile at all.

“That is a threat to all incumbents, no matter how established, as insurtech start-ups look to take the risk transfer business model to new places.

“Rather than fighting over the existing pie, finding ways to make sure that pie is a great deal bigger, while taking a good and profitable share, would be a much better use of London’s reinsurance and insurance and risk transfer intellectual capital.”

Ms Beale ruffled feathers on the island after she said at an industry meeting in Germany that Bermuda was “eating our lunch” in terms of ILS.

The remarks came despite an admission last year by then-British Chancellor of the Exchequer George Osborne that Britain did not have the tax and regulatory regime in place to capitalise on the multibillion dollar ILS market.

Mr Evans said that Ms Beale may have spoken with “a dash of irony.”

He added: “But it does highlight there is an increasingly competitive tone developing as London targets becoming a centre for ILS business.

“There are bigger threats coming to traditional and insurance and reinsurance markets.

“Staying ahead of the game, through innovation and leveraging what is unique and successful about a marketplace is far more critical to market hubs than catching up and trying to retrieve what was never theirs in the first place and, to be frank, no one owns.

“There are also bigger threats coming to the domicile business model as well, as regulators already sit down to discuss what it will mean when corporate structures are stored in the cloud and which regulatory or tax regime they should follow.”