Luxembourg and Dublin have been competing in the battle for being the location of choice for reshuffling UK carriers following Brexit. Other EU countries in the running seem to be Belgium, the Netherlands and Malta. The verdict of Lloyd’s in establishing its European foothold in Brussels is also likely to impact the decisions of others entities and potentially cause them to follow suit or push the state further up the rankings for consideration.
Although Dublin initially stood out as the clear choice, given its proximity to London and recognised re/insurance market, following decisions by FM Global and AIG to establish a presence in Luxembourg, Hiscox is the latest insurer to endorse the same as its country of choice in the EU in order to retain access to the market following Brexit.
Hiscox announced Luxembourg as its preference “for its pro business position, strong financial services experience and well-respected regulator”. However, insurers should not be too quick to rule out Dublin, despite a less than welcoming statement from the Central Bank that applicants “engaged in an efficient, open and rigorous process”. It is reported that companies considering applications have a positive view of the jurisdiction and that Dublin has been listening to feedback and putting in the effort to entice insurers.