What does the term 'invisible exports' refer to in the context of the London Market?

The term 'invisible exports' in the context of the London Market specifically refers to services provided by the insurance industry, particularly insurance sold to foreign clients. This concept is crucial as it highlights the role that London plays as a global hub for insurance and reinsurance services.

When insurance companies in London sell policies to clients located outside the United Kingdom, these transactions contribute to the UK's balance of payments, classified under invisible exports. This term designates exports that are not tangible goods but rather services, encompassing various sectors, with the insurance sector being a significant player.

Understanding this context helps illustrate the importance of the London Market in the global insurance landscape and aligns with the broader economic idea that service-based interactions can also generate revenue akin to traditional goods exports.