LONDON — The tiny state of Luxembourg is fast becoming the go-to destination for UK insurers looking to set up subsidiaries in the European Union after Brexit, with several more firms eyeing the country as a possible location, the head of the country's finance lobby claimed.
ADVERTISEMENT
Luxembourg is emerging as the go-to destination for insurers fleeing London post-Brexit
Nicolas Mackel, the head of Luxembourg for Finance, a lobbyist promoting Luxembourg as a finance hub, believes that more insurers will announce new EU offices.
Luxembourg City in the winter.
ADVERTISEMENT
Recommended articles
"pro-business position, strong financial services experience and well-respected regulator," adding that it is also "close to many of our major markets."
Several UK-based ship insurers are reportedly making plans to set, while Royal Sun Alliance (RSA) is "
While much of the focus on the future of the City of London since Britain voted to leave the EU has been on banks, insurers are also set to be heavily impacted by the expected loss of financial passporting once Britain leaves the European Single Market.
ADVERTISEMENT
The passport is a system of common financial rules that allow UK based financial firms to access customers and carry out activities across Europe. The Financial Conduct Authority (FCA) said last year that 5,500 UK companies rely on passporting rights, with a combined revenue of £9 billion.
Without it, doing business in the EU from London will be very tricky, so plans are being put in place for establishing or extending European offices to cope with the looming rule changes.
FOLLOW BUSINESS INSIDER AFRICA
ADVERTISEMENT
Recommended articles
Hackers test their ransomwares in less protected regions like Africa before striking richer nations: Report
Top social media platforms used for agriculture in Kenya - Survey
African countries with the fastest-growing military strength in 2024
3 African countries could play host to Russian diplomatic missions
Trends in online casino gaming in New Zealand
10 African countries with the highest number of migrants
PHOTOS: Inside the hostel in Rwanda set to house migrants from the UK in July
10 African countries with the weakest governments
