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Lloyd's, the specialist insurance and reinsurance market, has announced that it will be setting up a new European insurance company to be located in Brussels, following Brexit.
Lloyd's chief executive, Inga Beale, said in a statement that Lloyd's intends to be ready to write business for the January 1, 2019 renewal season, subject to regulatory approval.
'Carry on without interruption'
Once approved, Lloyd's 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.
Ms. 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 U.K. 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.
"I am excited about the opportunities this venture will offer the market by providing that important European access efficiently."
No immediate impact on existing policies
Although the U.K. government has triggered Article 50, it remains a full member of the European Union for at least two more years and, Lloyd's said, there was no immediate impact on existing policies, renewals, or new policies, including multi-year policies, written during this period of time.
Ms. Beale added, "It is now crucial that the U.K. government and the European Union proceed to negotiate an agreement that allows business to continue to flow under the best possible conditions once the U.K. 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."
Learn more: www.lloyds.com/lloydseurope.
Related: Inside Lloyd's: Writing a reinsurance risk at Lloyd's of London [video]
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