Pressure is set to mount on the government to lower the level of corporation tax even further despite promises to enhance the UK's competitiveness.
City leaders and prime minister-in-waiting, Gordon Brown, have pledged to improve the capital's attractiveness by introducing new measures, including a dedicated London insurance university.
But the proposals, which come in the face of increasing competition from low-tax insurance centres, such as Bermuda, are unlikely to quell calls for a further cut in the 28% level of corporation tax.
One senior industry figure, told Insurance Times: "We are still seeing a significant number of departures to Bermuda, so, although [these measures] are an endorsement, an 'I love you' and here is a card saying that, as far as tangible things [the government] must continue to look at tax, light touch regulation and the City's infra-structure."
He added: "Gordon Brown accepts that where the UK does very well is financial services.
"Insurance is a major chunk of that.
"As a result, there is a readiness to listen to UK company complaints and worries, so someone like Lloyd's chairman Lord Levene [who sits on Gordon Brown's high-level working group] gets a fair hearing.
"Whether this is window dressing or not is yet to be seen, but it is very helpful that [Brown] recognises that the cash cow has to be nurtured."
The measures, which were presented by Levene at the second high-level meeting of Brown's working group, would also introduce electronic trading to the insurance sector.
Under the measures, London would also host a global risk summit to boost the capital's reputation for wholesale general insurance.
The proposals come as economic secretary to the Treasury Ed Balls launched the International Centre for Financial Regulation (ICFR).
The research centre, the first of its kind in the world, will receive £2.5m of funding from the Treasury over the next three years.
Set up by a committee chaired by Standard Chartered chairman Mervyn Davies, its aim is to influence regulatory developments and offer training on international regulation.
