Lloyd’s confirms Brussels as its new EU hub location

London-centred specialist re/insurance market Lloyd’s said that it will be setting up a new European insurance company to be located in Brussels to secure access to the EU market after Brexit.

The move comes one day after the UK officially notified the EU that it is leaving the union.

As the country is leaving the EU, London, as an important re/insurance hub, is worrying that it might lose EU passporting rights. The mechanism provides a company authorised in one member state the ability to conduct cross-border business without being required to apply for any additional authorisation or hold assets locally.

Lloyd’s CEO, Inga Beale, said that the intention to create a corporation in Brussels is to allow the company to be ready to write business for January 1, 2019 renewal season, subject to regulatory approval.

The new company will be able to write risks from all 27 European Union and three European Economic Area states after the United Kingdom has left the EU, providing customers and partners continued access to the Lloyd’s market, according to a statement.

“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,” Beale said.

“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.”

Whilst the UK Government has triggered Article 50, which starts the official negotiations, the country remains a full member of the European Union for at least two more years, Lloyd’s noted. Therefore, there is no immediate impact on existing policies, renewals or new policies, including multi-year policies, written during this period of time, according the the statement.

Beale added: "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.”

The Lloyd’s market focuses on specialist re/insurance underwriting and includes more than 50 insurance companies, over 200 registered Lloyd’s brokers and a global network of over 4,000 local coverholders.

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