He explained that if Lloyd’s can not access the EU single market, the business will need to be written both by the company and by others located within the European Union.
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Lloyd’s is the oldest insurance marketplace in the world, having been founded in 1688 as a maritime insurance market.
Nelson, who is setting out his concerns in a speech in the City on Monday evening, added: ‘Lloyd’s is Lloyd’s, it is not Lloyd’s of London.
The chairman of Lloyds of London has warned the insurer may be forced to move some of its business to Europe if passporting rights aren’t secured in Brexit negotiations.
However, his comments come as the chairman of Lloyd’s of London warned that losing single market access could mean the insurance market moving its operations out of the UK.
“At Lloyd’s we are very much of the view that retaining access to the European Union single market is fundamental, not just for Lloyd’s but for the City in general”, he said.
At Lloyd’s of London’s annual dinner on Monday night, the Financial Times reported that Nelson stressed the importance of the United Kingdom retaining the passporting rights that allow access to the single market.
The umbrella group said it is now looking at setting up “onshore” businesses that would include the establishment of various branches in European member states, a spokesman told the Irish Independent.
Passporting allows insurance firms and banks based in the United Kingdom to operate freely across the what is known as the European Economic Area (EEA), which is made up of the EU and certain other countries. including Norway. We operate right round the world.
The EU accounts for about 11 percent of Lloyd’s 25 billion pounds in gross written premiums, according to a spokesman. Ensuring that the United Kingdom financial sector remains competitive must be top of the [British] government’s post-Brexit plans. He pointed out that the insurance business is a mobile one and that if uncertainty remains for a long time, the industry will change locations seeking greater stability. He also warned that Lloyd’s could take a decision to leave the United Kingdom “more quickly than the renegotiation timetable” if exit plans are not clarified soon.
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The news comes as world leaders express concern over the impact of Brexit on the United Kingdom economy at the G20 summit in China.
