The British government is still considering changes to insurance industry tax rules to enable UK companies to compete better with rivals in low-tax jurisdictions like Bermuda, Lloyd's of London chairman Peter Levene said.

Speaking to Business Insurance magazine this week, Lord Levene refuted recent British newspaper reports that British Treasury bosses had ruled out making any tax changes to boost the UK insurance industry.

"The issue has not been swept under the carpet. It is still very much on," Lord Levene told the magazine after making a speech in Madrid on Tuesday.

He said the government had ruled out changes to corporation tax, but not to insurance tax rules. UK corporation tax is currently levied at 30 percent, compared to zero in Bermuda, although that rate is due to fall to 28 percent from April next year.

Several Lloyd's of London insurers have redomiciled in Bermuda, or set up units on the Island, attracted by the Island's tax advantages, including Hiscox, Omega Underwriting and Amlin.

The effort to persuade the UK government to reconsider its taxation policy for insurance companies has been led by Lord Levene as head of the called High Level lobbying group.

The Lloyd's chairman flew to Spain to partake in the annual renewal conference organised by Spanish risk management group AGERS directly from a meeting of the High Level group. He said that the intention of the group is to continue to discuss "specific tax issues" with the government.