John Nelson, the Chairman of Lloyd’s, has issued a statement that, following careful consideration, the Council of Lloyd’s and its Franchise Board have unanimously concluded that the best outcome upon the forthcoming EU referendum, in the context of the interests of the Lloyd’s market, is for the UK to remain a member of the EU.
Notwithstanding this, Nelson explains that the market has been developing contingency plans in the event that the referendum results in the UK leaving the EU so as to ensure that in such circumstances the market can continue to access the EU markets. Nelson says that such access, following Brexit, would become less attractive than the single market access currently enjoyed, and that this change would be inevitable.
The statement followed a speech made in early February about the consequences for Lloyd’s of leaving the EU, in which Sean McGovern, Lloyd’s Chief Risk Officer, explained that aside from the “considerable uncertainty” that such a move would create, not least with regard to the regulatory regime, voting on 23 June 2016 in favour of leaving the EU would “fuel European financial markets turmoil” and set a precedent for EU countries to leave the union.
The message has broadcast Lloyd’s commitment that, despite the circumstances, they will work towards ensuring business continues to flow to London but will also continue to offer the opportunity to write business in local markets under the Lloyd’s structure.