Is the insurance industry Brexit ready?

John Shepherd, Chief Executive – Shepherd Compello

Our CEO, John Shepherd, wrote an article for Insurance Day on the Brexit readiness of the insurance sector. Some of the main points are below and you can read the full article here.

While the world has been gripped by a global pandemic, the UK’s departure from the European Union has understandably slipped from the front pages.

The mainstream media has been focussing on trade deals, lorry parks in Kent, and fishing rights in our coastal waters. At the same time, the insurance industry has largely been ignored.

Yet, the UK insurance industry is the largest in Europe, at over £1.6 trillion with tax contributions of £75bn making it the largest contributor of any sector in the UK. My concern, based on my own experience, is that, like other parts of the economy, our industry is not ready for Brexit.

Lloyd’s moved early so did we

Lloyd’s Brussels was set up in preparation for departure from the European Union. I also took the decision to prepare our business to be ready for the future.

October is the real Brexit date for Lloyd’s

When the UK entered the transition period in January, it also signalled the deadline to put plans and facilities in place to continue trading in EEA countries. As a result, Lloyd’s will not renew European business from 1st October with non-complaint firms. Worryingly, I hear there are still brokers and coverholders who are not aware of this.

The time to act is now

For brokers and coverholders who want to renew business after 1st October and into 2021, I would urge them to act quickly.

We prepared by setting up a compliant European facility based in the Netherlands with a reverse branch in London. This has allowed us to collaborate with one European coverholder to ensure that risks are renewed. We have also been approached by others, including brokers, who want to do the same.

While the deadlines have passed to do it yourself for Lloyd’s, there is still an opportunity to be Brexit ready. We just need to collaborate.

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