03 February 2017

Commercial Risk Europe: Lloyd’s sees Brexit as opportunity in France

Lloyd’s underwrote more than €550m of gross premium in France during 2016, which included a 10% increase in direct insurance. Growth has been particularly good in specialty lines like cyber, political risk and event cancelation, according to Mr Rochefoucauld.

“Let’s be absolutely clear: Lloyd’s is committed to bringing more capacity and service to the French market,” Mr Rochefoucauld said.

The Lloyd’s representative is confident that Brexit will not affect the London-based insurance market’s ability to provide cover for French companies.

In March, the UK is due to begin a two-year negotiation process to leave the EU. The process is expected to see London-based insurers lose passporting rights, which enable them to sell policies directly into Europe without the need for branches. It is hoped that a trade deal between the UK and EU can be reached that will include financial services.

Lloyd’s has been working on a contingency plan for Brexit. It is now in the process of deciding in which European city it will establish a legal entity to front direct EU business of Lloyd’s syndicates.

A decision on the location of the new platform is expected in March, while Lloyd’s will begin working with regulators from April.

“It is a tight schedule, but we will do it. Clients will expect us to continue services. We remain committed to the market and therefore a solution will be in place to provide continuity of business,” he said.

Rather than viewing Brexit as a problem for the market, Lloyd’s believes it as an opportunity to revisit its approach to Europe.

“We see Brexit as an opportunity. It could be a real opportunity for Lloyd’s to improve its footprint in Europe and to be better recognised as a partner in Europe,” said Mr Rochefoucauld.

Full article on Commercial Risk Europe (subscription required)

© Commercial Risk Europe