Expert view: Lloyd’s outlines post-Brexit continuity plans

From trade deals to supply chain management, employment rights to exchange rates, there is still plenty of uncertainty over the nature and impact of Brexit for organisations based in the UK and the European Economic Area (EEA). 

Brexit preparations have affected all areas of operations including sales, regulation, corporate governance, legal, technology and staffing/HR. To deal with this uncertainty, risk managers need, more than ever, to stay flexible, ready to change at short notice, and to plan for the long-term. Preparation requires extensive portfolio assessments by geography of premiums, as well as a thorough review of profile exposures to navigate these changing outcomes.

Lloyd’s understands the need for such agility. Europe remains one of the largest established markets for Lloyd’s, with GWP of over €4bn Euros in 2018. We recognised early on that, amidst the uncertainty of Brexit, it would be imperative to provide our customers, our market and our EEA partners with continuity, certainty and a platform for future growth. That was the driving force behind the creation of a Lloyd’s subsidiary in Brussels – well ahead of the Brexit deadline.

How does it work? Lloyd’s Brussels is a locally capitalised and fully operational insurance company, which offers risk managers continuity of service, backed by specialist underwriting and claims expertise and the same financial ratings and security of the Lloyd’s market A.M. Best: A, Standard & Poor’s: A+, Fitch Ratings: AA.

So, in practical terms, Risk managers can continue to access Lloyd’s specialist policies as they have always done. To obtain global coverage for most risks, risk managers simply need to supplement their non-EEA cover from Lloyd’s with a separate Lloyd’s Brussels insurance policy which will cover risks based in the EEA.

In addition, we have kept the process for placing risks and managing claims simple. Risk managers can continue to transfer their risks through their Lloyd’s broker, coverholder, or service company; and claims continue to be managed by our specialists. We believe that nowhere is there a clearer demonstration of the value of insurance than in the payment of claims, and Lloyd’s Brussels holds strong to that commitment. Our trusted reputation is built on our promise to pay, and Post-Brexit, this will not change. We will continue to honour this commitment and have announced that Lloyd’s underwriters would continue to pay all valid claims regardless of the result of the Brexit negotiations. We will also be moving all legacy EEA business to Lloyd’s Brussels before the end of 2020, via a Part VII transfer.

So what next? Being prepared allows Lloyd’s and risk managers to remain focused on the areas of growth and the opportunities clients should be thinking about now and post-Brexit. Europe continues to be a driver for technology innovation around the world and new risks and protections are emerging as a result. Our emerging risks reports about ‘The Sharing Economy’ is just one example.

Lloyd’s Brussels is well positioned to develop in the EEA not least because of Lloyd’s technological investments into electronic placement and digital data capture– but also because we have launched and continue to develop products that meet the evolving needs of risk managers. So from protection against intangible assets, revenue loss and contingent business interruption – or indeed navigating the impact of Brexit – we aim to protect the future of the businesses our clients represent.

Guy-Antoine de La Rochefoucauld, France Country Manager, Lloyds