QBE does not expect the UK government to be able to retain existing EU access arrangements for UK based insurers.
At the AGM QBE chairman Marty Becker explained, "While the impact of Brexit on the economy of the United Kingdom will take some time to become clear, with Article 50 now having been triggered the two year period for the UK to formalise its exit is now underway. We need to prepare our business for this reality, and we are doing so on the assumption the existing access arrangements enjoyed by UK domiciled insurers to the other 27 European Union countries will not be preserved. This impacts QBE Insurance Europe Limited and QBE Re in addition to our Lloyd’s business, which will be subject to a separate Brexit response plan being put in place by Lloyd’s."
Becker continued, "We are well advanced with our plans and negotiations for the establishment of a new location for our EU business, and expect to have a solution in place for 2018 renewals."
Australian insurer QBE has 1950 employees in Europe of which 1350 are in London.
In Europe QBE have offices in many cities including- Brussels, Copenhagen, Madrid, Milan, Munich, Paris, Stockholm and Strasbourg.
CEO John Neal says, “The UK’s decision to exit the European Union adds a little bit of complexity to our operations. It does not involve the meaningful movement of staff. Policy holders won’t see any difference in the way we deal with them.”
Ian Youngman, leading insurance analyst and author of new report BREXIT and Insurance 2017 market research report comments, "Politicians may believe their own hype that they can strong arm the EU into getting an insurance access deal as good as we have now, but most insurers doubt this can be done - so have to be prepared."
BREXIT and INSURANCE: What BREXIT Means For Insurers And Brokers Operating In Or Planning To Operate In The UK And Europe
Learn more about passporting and everything else you need to know right now about BREXIT and Insurance in the brand new report from leading insurance analyst Ian Youngman.
With 200 pages of critical insurance business intelligence, this new market research report from leading insurance analyst Ian Youngman looks at what BREXIT means for insurers and brokers operating in or planning to operate in the UK and Europe.
For those UK insurers, EU insurers, brokers and agents selling- or planning to sell- into the UK and/or European markets; BREXIT is a legal and logistical nightmare.
UK regulators have demanded that every UK insurer now doing business in the EU/EFTA - whether by passport or local subsidiary- and every EU/EFTA insurer doing business in the UK on a passport or full basis -must show them their contingency plan that covers all options including the nuclear one of a UK exit with no deals.