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Several insurers, brokers and financial institutions established in the United Kingdom have announced their decision to set up an European subsidiary company in order to have access to the Old Continent following the Brexit [4].
Some have already settled there such as AIG, FM Mutual and Hiscox, choosing Luxembourg. Lloyd’s took the first steps by establishing “Lloyds of Europe”, a company due to start operating at the beginning of 2019 in Brussels. Admiral, Beazley and Royal London chose Ireland. In total, 100 companies are currently benefiting from the free trade passport between United Kingdom and Europe. The latter will be compelled to set up a subsidiary on the continent in order to gain access to the rest of the European market.
The inflow of British insurers is likely to trigger growing competition on the European market and prompt merger-acquisition operations. Analysts are also forecasting substantial regulatory reforms. United Kingdom’s official exit from Europe is due on March 31, 2019.