Steamship Mutual, a British ship insurance company, is reportedly planning to establish a new Netherlands subsidiary in response to the UK’s vote to leave the European Union (EU), according to Reuters.
Widespread uncertainty still surrounds the Brexit process, and in response a number of insurers and reinsurers have announced plans to launch an EU subsidiary outside of the UK and the London market, in order to ensure continuity post-Brexit amidst uncertainty surrounding single market access and an apparent lack of transitional plans.
Now, according to Reuters, Steamship Mutual is the latest UK insurer taking measures to ensure continuity when the UK leaves the EU, which is expected to happen on March 29th, 2019.
According to Reuters, the ship insurer’s Executive Chairman, Gary Rynsard, explained in an email that the firm is “about to apply for a licence to establish a subsidiary company in the Netherlands,” continuing to explain that it would choose the city of Rotterdam.
Rynsard told Reuters that it was important to act now as to ensure the firm could continue underwriting business in the bloc at the renewal date of February 20th, 2019, which is just before the Brexit date.
“We cannot rely on transitional plans and will take action assuming a worst case scenario,” Rynsard reportedly told Reuters.
Furthermore, it was revealed that the ship insurer expects to have five staff members in the Netherlands by the end of 2018, so the firm is clearly taking steps to ensure continuity of business if passporting rights are lost.
