Lloyd’s of London has announced it will be setting up a new European insurance company to be located in Brussels, Belguim.
Lloyd’s chief executive Inga Beale said the intention is for the company to be ready to write business for the 1 January 2019 renewal season. The company will be able to write risks from all 27 European Union (EU) and three European Economic Area states after the UK has left the EU, providing their customers and partners with continued access to the Lloyd’s market.
This announcement follows the signing of Article 50 by UK Prime Minister Theresa May, which officially set into motion the exit of Britain from the EU to be finalised in the next two years. While the UK government has triggered Article 50, it remains a full member of the European Union for at least two more years and, therefore, there is no immediate impact on existing policies, renewals or new policies, including multi-year policies, written during this period of time.
Beale said, “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.
“It is now crucial that the UK government and the EU 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,” explains Beale.