Following Britain’s decision to leave the European Union, British ship insurer Britannia plans to set up a subsidiary in Luxembourg, Reuters reported. It is to ensure it can continue to trade in Europe, the company said.
According to company data Europe accounts for over 40 percent of Britannia’s global business.
The report said that insurers are making contingency plans because when Britain leaves the EU on March 29, 2019, they could lose “passporting” rights that allow UK financial services firms to trade in Europe without the need for locally regulated entities.
So far Dublin, Luxembourg and Brussels have been most successful in wooing insurers setting up EU hubs.
Britannia P&I Club is one of 13 major global P&I (Protection and Indemnity) clubs. The six which are regulated in Britain are estimated to account for over half the revenue of an industry that insures about 90 percent of the world’s ocean-going tonnage.
“With the advice of third-party consultants and having engaged with various EU regulators, Britannia’s board has now instructed the managers, Tindall Riley (Britannia) Ltd, to focus on Luxembourg as the preferred option,” the company said in a statement.
Britannia has recently hosted European Members Forum in Athens. The Forum, now in its 21st year, which was attended by 52 Members from across Europe, underlined the Club’s commitment to remaining accessible while providing Members with a personalised service.