O2 Broking ApS has been approved as the first Lloyd’s Registered Broker in Denmark as part of the re/insurance marketplace’s preparations for Brexit.
Lloyd’s previously established a hub in Brussels to help it transition smoothly as the UK exits the European Union.
However, subject to current negotiations between UK and EU about the future trade agreement, the London-based Lloyd’s brokers will most likely no longer hold the requisite insurance or reinsurance intermediary licenses to work with clients within the EU.
Lloyd’s is thus looking to register locally established brokers within the EU to increase its presence in local markets and enable these brokers to access Lloyd’s re/insurance capacity.
O2 Broking – now the first broker to be registered in Denmark – operates as an insurance and reinsurance broker in the Scandinavian market, with a focus on reinsurance, supporting agents and coverholders providing capacity for their insurance activities.
The firsm was established in 2016 and is co-owned by executives in O2 and Independent Broking Solutions Limited (IBS).
IBS is itself a Lloyd’s registered broker in London and administers a network of appointed representatives (ARs), owned by client operations, providing access to Lloyd’s and the Global Company market.
In connection with the establishment of O2 Broking as a Lloyd’s registered broker the company will become a subsidiary of IBS who will take over a majority ownership of O2 Broking.
As a registered Lloyd’s Broker, O2 Broking is able to act as an intermediary and place insurance and reinsurance business directly into both Lloyd’s and Lloyd’s Insurance Company in Brussels as well as assisting IBS clients to support the EU market through co-operation with O2 Broking.
This will take place through the firm’s recently established branch in London which, together with its office in Copenhagen, will transact the business in co-operation with local clients.
Nick Readings, Executive Chairman of the IBS Board, commented: “The EU is 13% of the total market activity in Lloyd’s and, as such, is an important part of the economics of the Lloyd’s market. However, for some brokers and coverholders the EU market is an even greater share of their income.”
“With Brexit now a certainty and negotiations being delayed by Covid-19 there is an increasing risk that UK based companies will lose access to the EU market,” Readings continued.
“These companies will need to find a solution quickly. Using our entities in Denmark and London, we will be able to assist such companies and, at the same time, create a market opportunity for O2 Broking ApS in Copenhagen.
Henrik Skafte, CEO and Partner at O2 Broking, also stated: “Since 2016 we have been focusing on the Scandinavian market and have been able to work with local agents and insurers in the development of international insurance solutions into this market.”
“O2 Broking ApS will not only continue to focus on the agency and coverholder market but will also facilitate business in the very specialised markets where Lloyd’s are uniquely qualified to deliver risk solutions for clients in Europe,” Skafte added.