North P&I Club and its subsidiary Sunderland Marine have announced plans to establish a subsidiary insurance company in Ireland to ensure passporting rights following the UK’s vote to leave the European Union (EU).
In a statement, North P&I and Sunderland Marine underlined their reliance on EU passporting rights to insure risks located in the European Economic Area (EEA), and with Brexit negotiations seemingly stalling and widespread uncertainty surrounding the future UK/EU trading relationship, the insurer has taken steps to prepare for a post-Brexit world.
The firm expects that its passporting rights will be lost either immediately as the UK leaves the EU, which is scheduled for March 2019, or at the end of any transition period that’s agreed.
In response to the widespread uncertainty, it was agreed at the North Board of Directors on November 8th, 2017, that an Irish insurance subsidiary would be established, to underwrite all future EEA business of both North and Sunderland Marine, effective 20th February, 2019.
According to the statement, Ireland was chosen because its regulatory, legal, and taxation framework is similar to the UK, the country’s regulatory system is mature and is Solvency II experienced, the region hosts a strong talent pool, and has the ability to conduct business in English.