Majority of London execs think Brexit will be bad for Lloyd’s
More than two thirds of insurers, brokers, and service providers in London’s £60 billion international insurance market say leaving the European Union would be bad for Lloyd’s of London.
The report, by Haggie Partners, found that 68.7 percent of market practitioners believe Brexit would ‘hurt’ or ‘severely damage’ Lloyd’s, slightly more than a quarter (25.1 percent) believe it will have no impact, while only 6.2 percent believe Brexit would benefit the market.
Some 69.9% of respondents sell directly into the EU. Of the remainder, 58.2 percent sell indirectly into the EU. Only 12.7 percent sell nothing into the European Union.
These sales are reflected in the respondents’ workplaces: 70.3 percent of London market practitioners said they work with colleagues from other member states of the EU. Nearly 59 percent ‘believe that the EU Single Market for insurance is the best realistic international regulatory regime’ for Lloyd’s insurers.
As Lloyd’s expands its international presence, 45.8 percent of respondents chose the EU as the top priority for development, compared to 23.7 percent selecting China, 16.2 percent Latin America, 10.7 percent India, and 5.5 percent the Middle East.
“Lloyd’s centrally has clearly stated its preference for Britain to stay within the European Union, and this research shows that, from a business perspective at least, the vast majority of companies in the London market agree,” said Dr Adrian Leonard, who constructed the survey.
He added: “As well as the obvious – but far from unanimous – support for remaining in the EU, the survey has uncovered some tensions at Lloyd’s. Brokers may not be looking for business in the places where insurers want it to come from.
“More important, perhaps, the strategic objectives of Lloyd’s leadership don’t seem to be entirely in harmony with what underwriters want. Most believe the chairman should be an ambassador for the market first and foremost. There is less support for strategic decision-making from the top floors of Lime Street.”
