Lloyd’s of London CEO Inga Beale has warned of Brexit’s “hidden impact” that could trigger economic downturn in 2021 – companies going on a prolonged hiatus on investment and innovation.
Beale, who said in March that Lloyd’s will set up a new European insurance firm in Brussels, is expecting a “wave of similar moves” by companies which would affect the economy in four years.
Speaking to The Sunday Times, Beale said companies were using the time and resources that could instead be spent on innovation for their Brexit preparations. These preparations included application for licences to open new subsidiaries in Europe and relocation of workforce.
“We have to go on pause and that’s the hidden impact we’re not able to measure,” Beale was quoted as saying in the report.
“We have lots of excellent people who are working on [Brexit planning]. They can’t be working on something new,” she added. “You’re talking four years down the line — you’ll see some sort of impact.”
Lloyd’s will establish a new subsidiary on the continent to maintain access to the EU market when the UK leaves the trading bloc.
The new insurance company will be able to write risks from all 27 EU and three EEA states. According to Beale, the firm will be ready to write business for the January 01 2019 renewal season.
Related stories:
Lloyd’s heads to Europe with £2.1 billion profit
