Credit rating agency Fitch has warned that the UK’s decision to leave the European Union may lead to a loss of business for Lloyd’s of London.
In a new report, Fitch said Lloyd’s could lose business unless the UK succeeds in negotiating passporting rights to retain access to the European Economic Area (EEA).
Without passporting rights, UK insurance firms wanting to underwrite risks from the EEA would need to establish entities in the area, Reuters
“We believe this could lead to business moving away from the Lloyd's platform,” the news agency quoted Fitch Ratings as saying.
According to Fitch, the EEA accounted for £2.9 billion or 11% of Lloyd’s gross written premium in 2015.
A spokesman for Lloyd’s maintained that “it is in the best interests of Lloyd's and the specialist insurance sector” that the UK is able to maintain access to the EU’s single market, preferably with passporting rights.
Lloyd’s will continue to make that case to the government, the spokesman assured.
“However, we are progressing the options available to us to ensure the Lloyd's market is able to continue trading with the EU and take advantage of the new opportunities that will arise,” the Belfast Telegraph
quoted the spokesman as saying.
“We believe that the quality and expert underwriting provided by the Lloyd's market that has been attractive to European customers over the decades will continue to be so in the post-Brexit environment,” the spokesman added.
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