SHUTTERSTOCK / BIKERIDERLOND
The London Market and Lloyd’s have overcome many challenges in their long history and come out stronger. But with a potential exit from the EU on the horizon and intense competition from other global hubs, can the world’s historical centre for risk transfer remain ahead of the curve for much longer? Intelligent Insurer reports.
The word ‘Brexit’ strikes fear into the heart of many British citizens, including a number of insurers. By the end of 2017, the UK is expected to hold a referendum on whether to leave the EU. If the UK exits, insurers will be faced with a number of consequences.
A key advantage of membership, the passporting system that allows UK insurers to write insurance business in any EU country without the need to establish subsidiaries, is likely to be abolished. This means that UK insurers cannot passport business to Europe, and EU firms will not be able to write business in the UK via passporting rights.
David Gittings, chief executive officer of the Lloyd’s Market Association (LMA), believes life for insurers would be problematic if this system were scrapped. He is against the UK exiting the EU.
Lloyd's, LMA, S&P, Zurich, EFTA, LMG,