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18 February 2016

Commercial Risk Europe: Brexit would hurt UK insurers and European rivals in London


Commentators warned that a UK vote to leave the EU will likely result in huge uncertainty and a weaker position for its insurers and European rivals operating in London. This could have a severe knock-on effect for insurance buyers.

Lloyd's has entered into the debate saying that a vote to leave the EU could affect its £6bn business in Europe.

For example, a Brexit may make European insurance buyers think twice before placing business with UK-based insurers. Law firm Cooley warned that some international insureds might start to select against UK insurers in order to protect themselves against Brexit risk and uncertainty.

Last week, Lloyd's chief risk officer, Sean McGovern, predicted "rarely experienced" levels of financial market turmoil should the UK vote to leave the EU. He also predicted political uncertainty because a UK exit might set a precedent for other countries to leave the union.

Speaking in London, Mr McGovern said that the benefits of EU membership are critical to the success of the London insurance market. In particular, he flagged up access to the single market, foreign direct investment and international trade delivered by EU membership.

Full article on Commercial Risk Europe



© Commercial Risk Europe


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