As Brexit negotiations enter a second phase to focus on a trade deal once the U.K. leaves the European Union, Lloyd’s Chief Executive Officer Inga Beale reiterated concerns over the impact on business of remaining Brexit uncertainties at the World Economic Forum (WEF) in Davos.
She told the CNBC; “the government has made some inroads, we’re that by the end of the first quarter of 2018, the U.K. government would offer more clarity on whether there would be any implementation period and transitional arrangement once the U.K. leaves the bloc in March 2019.
“This will give some comfort to business, but it’s not going to be providing any legal certainty.
“Do we have another 2 years, 3 years, 4 years, to implement the exit? That’s not necessarily going to help us, and we need the certainty.
“At Lloyd’s we’ve taken our future into our own hands as much as we can, we’re opening up a subsidiary in Brussels in Belgium. That’s because about 2 billion of our business has to go through an EU-licensed entity.”
Beale recently confirmed that the Lloyd’s marketplace is set to begin operations in Brussels next January.
Lloyd’s announced in March 2017 that it had selected Brussels, Belgium, as its European Union home with the aim being to be ready to underwrite business there for the 1st January 2019 renewal season.
Beale has been an active advocate for the need for a settled business operating environment within the UK, having previously called for certainty after the UK government and the EU announced the next phase of Brexit talks, saying “the priority must be to ensure mutual insurance and reinsurance market access once the UK leaves the EU. If the LMG’s proposals are adopted neither the EU nor UK would have to sacrifice market access or control over their respective regulatory regimes.”