The specialist Lloyd’s of London insurance and reinsurance market has 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.
Lloyd’s has been looking for an EU base for a subsidiary insurance company, to secure its access to European markets in a post-Brexit world.
Lloyd’s announced previously that it was considering a number of new locations for its post-brexit EU subsidiary, with Ireland, Malta, Luxembourg, Belgium and Germany being possible domiciles. This was then shortlisted to Brussels and Luxembourg, reports subsequently said.
Lloyd’s Chief Executive Inga Beale explained; “It is important that we are able to provide the market and customers with an effective solution that means business can carry on without interruption when the UK leaves the EU.
“Brussels met the critical elements of providing a robust regulatory framework in a central European location, and will enable Lloyd’s to continue to provide specialist underwriting expertise to our customers.”
“I am excited about the opportunities this venture will offer the market by providing that important European access efficiently.”
The new Brussels base will allow Lloyd’s to underwrite risks from all 27 European Union and three European Economic Area states after the United Kingdom has left the EU, enabling the market to provide clients with continuity and ongoing access to underwriting products and services.
With Brexit taking two years to implement, even after Article 50 was triggered yesterday, Lloyd’s has two years before any impact is really felt, so having Brussels in place now will enable it to get the new base up to speed in plenty of time.
“It is now crucial that the UK Government and the European Union proceed to negotiate an agreement that allows business to continue to flow under the best possible conditions once the UK formally leaves the EU. I believe it is important not just for the City but also for Europe that we reach a mutually beneficial agreement. We stand ready to help and support the Government as best we can,” Beale said.