Brexit has caused many changes to the metropolis of insurance, the London market. The underlying insurance issue with Brexit was to find a formula that would allow insurance companies/mutual associations etc. to
continue to have an automatic access to the EU market.
In EU terminology "Passporting" is the exercise of a firm’s right to carry on permitted activities in another EU member state, on the basis of its home state authorisation. To the best of our knowledge, virtually all insurance providers, including insurance companies, IUMI, Lloyd's of London, International Group's P&I Clubs and P&I fixed premium providers are already using EU companies to continue to benefit from passporting rights. For example, Lloyd's of London have set up an insurance company in Brussels which re insures all business in the Lloyd's of London. This way there appear to be no changes to the assureds but minor compliance changes to the way that Lloyd's of London operate. At the same time, most insurance providers' employees did not have to relocate to EU countries to comply with regulations.
At the end of the day, business is as usual in the London insurance market and we do not expect any surprises in the near future. Unfortunately, other sectors in the UK may not have found a workable fronting solution and the results could prove to be less than encouraging.