The UK will leave the European Union at the end of March 2019.

From an insurance market perspective, one concern is the possibility of ‘loss of passporting rights’ (the ability of an insurer or broker to carry out business across the EU from a single country licence) and Freedom of Services (FOS) access (access to the single market that an EU member state enjoys.

Notably the world’s largest insurance market, Lloyd’s of London is opening an office in Brussels just in time for Brexit. This move is to continue serving clients in the EU after Brexit.

The European Union (EU) has trading rights with over 75 countries in the world and Lloyd’s of London underwrites €4 billion in gross written premium related to EU business.

Many insurers operate from a single licence in the EU as part of a concentrated business model. However, the UK insurance market is currently arranging local licences in the EU if these do not currently exist.

Insurers already domiciled in EU locations outside of the UK will continue to passport throughout the EU from that location post-Brexit.  A potentially fraught Brexit negotiation could mean political interference in passporting plans.

Many industry news stories have suggested large numbers of insurance buyers may be left with limited options but we think it’s safe to say the insurance market is here to stay.  Provisions being put in place will allow international clients to continue to be served.

If you have any questions relating to global insurance requirements, please contact GPS Insurance Brokers on 020 8207 7385.

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