Britain’s impending departure from the European Union has prompted UK-regulated ship insurers to look at the possibility of establishing new bases elsewhere in the trading bloc.
Citing industry sources, Reuters reported that marine insurance firms including protection and indemnity (P&I) clubs – insurers owned by shipping companies – are planning to open new outposts in other EU countries such as Luxembourg and Cyprus.
Anthony Jones, a director at London Club, said that the P&I insurer was “actively exploring our options for a post-hard Brexit operating scenario.”
“We have prepared a shortlist of potential jurisdictions from which we could write EEA (European Economic Area) business, and our investigations are continuing as we attempt to identify which of these might best suit our requirements,” Jones told Reuters.
The news agency reported that P&I insurer North Club was “working on a range of contingency plans,” which included a new EU base. Britannia Club said it was “considering its options” while West of England Club would have “some form of dialogue with regulators like Luxembourg.”
Luxembourg has emerged among the potential top destinations for relocating UK insurers, according to Reuters, which cited information from a spokeswoman for the country’s national financial development agency.
Another likely contender is Cyprus, which has recently attracted more shipping companies, including those previously based in London. A country official told the news agency that there had been “early communication” over potential interest by clubs to open an outpost there.
Other possible destinations are Ireland, Germany, and Greece, according to Andrew Bardot, executive officer of trade body International Group of P&I Clubs.
“‘Wait and see’ is not an option given the time that it will take (to set up) a regulated subsidiary within an EU member state,” Reuters quoted Bardot as saying.
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