Majority of re/insurance execs want UK to remain in EU

A majority of re/insurance industry executives will be hoping the UK remains in the European Union (EU), according to an online poll carried out by Intelligent Insurer.

Today (June 23, 2016) the UK votes on whether or not to leave the European Union (EU), after a long and at times deeply contentious debate that has been labelled ‘Brexit’. Both sides have accused the other of exaggerations; both sides have stressed the benefits of their own positions.

Intelligent Insurer carried out its own online poll on voting intentions amongst readers, all of whom work directly or indirectly in the re/insurance industry.

The poll showed that 64 percent want to remain and 36 percent to leave, a result that is markedly different from recent polls of the electorate as a whole, where the numbers are so even that the predicting the actual result is difficult.

It does, however, tie in with the view of several big re/insurance organisations that have expressed their view that they would prefer the UK to remain including Lloyd’s of London.

We also asked for participants to comment on why they voted the way that they did on our poll – and we got a wide range of answers.

Many of those who said that they were against a Brexit stressed the economic implications. One reader said: “Brexit would be self-inflicted wound to the UK, and the City and its banking and insurance interests, who would lose the benefit of passporting and cross-border reach. It would also seriously weaken the EU itself and set a precedent others might follow.”

Another echoed this by saying: “The UK leaving the EU is a potentially major destabilising factor for Europe and others could follow. A disintegrating Europe is not in our interests and this trumps any potential benefits of leaving.”

Others said that leaving would be “a bigger gamble, better the devil you know!” and that it would be an economic nightmare if the UK left as it gains a lot from being inside. The economic cost was mentioned by many others, who were all concerned about the impact on the London insurance market.

And one reader covered multiple angles, saying: “In [a] time when the world is so interconnected and interdependent, ‘sovereignty’ is largely in name only and around the margins. The whole exercise of leaving in short to medium term would simply increase cost, increase uncertainty and destabilize for an eventuality which will not be materially improve [the] fundamentals of the country.”

On a slightly more light-hearted note they concluded: “Plus, more importantly, it'll wreak even further havoc on our Eurovision points tally.”

However, there were also readers who were passionate about their desire that the UK leave the EU. One reader said: “The issues of security, control of our borders and self-determination and primacy of our judicial system are of paramount importance. I do not accept the economic argument put forward by the Remain camp.

“The UK is the fifth largest economy in the world. We also have a huge balance of trade deficit with the EU. The idea that we cannot negotiate our own advantageous trade deal with Europe is, in my opinion therefore palpable nonsense. Germany in particular will continue to want to sell its goods to the UK. Will Europe really want for us to impose huge tariffs on their goods and services when they are a significant net exporter to the UK? I think not.”

Others were equally critical of the EU, saying that they thought that the EU in its present form will not survive over time, that they had issues over EU interference in legal matters and immigration, as well as: “Too much Red Tape currently.”

Another said: “[The] EU is now too imposing on strictly national matters. It is also an over-bureaucratic organisation working for its own empowerment.

Another specifically addressed the worries of the insurance market: “Lloyds transacted insurance without being part of a supranational jurisdiction from 1688 - 1973 - it could again. Better we control our own destiny.”

With the results of the vote due on Friday June 24th, many will be watching the outcome worriedly – on both sides of the debate.