The International Underwriting Association, Lloyd’s of London and Fidelis Insurance have published a joint position paper1 warning that Brexit represents a “grave threat” to the London insurance market.
The position paper comments that there is a real concern that if the electorate chooses to withdraw from the European Union on 23 June 2016 a large number of jobs in the market could be at risk. The London commercial insurance sector employs around 34,000 people and approximately 16% of the market’s business comes from other EU countries and this business is only increasing. Membership of the EU enables the London market to sell insurance to 443 million EU citizens who live in the EU and it also allows European insurance companies to invest in the London market. Brexit would likely lead to competing regulatory regimes between Britain and could result in European companies choosing to do business elsewhere with competitors such as Bermuda or Switzerland rather than in London.