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While the UK remains in limbo ahead of its delayed departure from the European Union, one tiny nation is seeing its insurance industry lap up the benefits.
A release by Luxembourg’s insurance regulator, Commissariat aux Assurances (CAA), shows that in the first quarter of the year the insurance sector in the country enjoyed more than a 46% rise in combined premiums (life and non-life) compared to the same period in 2018. Of the €9.43 billion total, €5.6 billion came from life insurance which posted a 7% increase from last year.
Meanwhile the €3.8 billion in premiums from non-life insurance signifies a surge of 218% from the same three-month period in 2018. The massive growth in premium income was mainly attributed by the CAA to Brexit, with insurance companies choosing the likes of Luxembourg as their new European hub.
Earlier this year the Netherlands also reported reaping the fruits of the UK’s decision to leave the EU. According to the Netherlands Foreign Investment Agency, nearly 2,000 jobs were generated last year by 42 firms – including those in the financial sector – that were brought in by the Invest in Holland network as a result of Brexit.
“Prolonged uncertainty will mean more jobs, assets, and investment leaving the UK, with the real winners being financial centres outside the EU and the biggest losers being customers and citizens on both sides of the Channel,” stated TheCityUK chief executive Miles Celic in April when the Brexit date was moved to October 31.
