Lloyd’s of London may follow several insurance companies and financial institutions that are planning to relocate their operations to Ireland in a post-Brexit world.
The Irish Independent
reported that Lloyd’s could move some of its staff to Ireland if the UK loses its access to the EU single market as part of the Brexit negotiations.
The publication cited an unnamed Lloyd’s spokesperson who didn’t exclude Ireland as a probable destination for the insurer’s office outside the UK.
It was Lloyd’s chairman John Nelson who first revealed that the firm may quit London if access to the EU market will not be guaranteed, a warning which he reiterated during the Lloyd’s City Dinner on Monday.
Nelson said retaining access to the EU is “fundamental” for both Lloyd’s and London.
“If we are not able to access the single market, either through passporting rights or other means, the inevitable consequences for Lloyds - and indeed other insurance organisations - will be that we will transact the business onshore in the EU – and that obviously will impact on London’s competitive position,” Nelson said.
“Let me be quite clear though, Lloyd’s will always be centred in London,” he added.
While Lloyd’s continues to argue for single market access with the government, Nelson said work is also ongoing around the alternative options available.
Nelson also stressed that the post-Brexit environment would present new opportunities for London’s insurance sector, including the chance to review “overly burdensome” regulations.
“There is an opportunity for us to look at our regulatory framework objectively and ask ourselves: is it giving us every chance to succeed?” Nelson said.
“A strong, prudential regulatory regime – not light-touch – is an encouragement for firms and people seeking to invest. It brings confidence and reassurance.”
Lloyd’s of London could quit city – boss
Fitch: Lloyd’s may lose business due to Brexit
Ireland’s potential post-Brexit