Cyclists should consider buying insurance to protect themselves and pedestrians, said John Neal, the CEO of Lloyd’s of London, the world’s largest insurance marketplace.
Neal’s comments come in response to a series of serious accidents involving cyclists, reigniting debate about the need for mandatory insurance.
Neal described the idea of insurance for cyclists as not ‘such a crazy idea’ and emphasized the importance of protecting all road users. The suggestion comes after a drunk cyclist recently avoided jail despite punching 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 some protection as well,” he noted. Stressing the importance of safety, he added: “I can’t understand why anyone wouldn’t wear a crash hat while cycling.”
Currently, British cyclists are not legally required to take out insurance or register their bicycles, as road laws only apply to “mechanically powered” vehicles. However, calls for change are growing, especially as the government plans to introduce stricter laws against cyclists who cause fatalities and injuries to pedestrians. These measures were initially proposed by the previous Conservative government but were shelved before the general election.
Proponents of mandatory bicycle 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, founded in a 17th-century coffee house near the Thames, does not currently offer bicycle insurance. The company recently reported £4.9 billion in pre-tax profits for the first half of 2024, an increase of 25% compared to the same period last year.
As well as discussing cycling safety, Neal warned the Labor government of excessive tax increases and regulatory changes that could deter investment in Britain. With Chancellor Rachel Reeves expected to increase business taxes in the upcoming October Budget to tackle a £22 billion shortfall in the public finances, Neal stressed the need for a balanced approach.
“We just want Britain to be sensible, fair and competitive,” he said. “Fiscally speaking, we have to pay taxes, both individually and collectively. And from a regulatory perspective, it is important that markets are closely monitored, properly monitored and managed. But we must ensure that we can remain competitive. We must be an attractive proposition in financial services globally.”