Two thirds think Brexit bad for business - FREE

Two thirds think Brexit bad for business - FREE

BrexitMore than two-thirds of insurers, brokers, and service providers in London’s £60bn market say that Britain leaving the EU would be bad for business, according to Haggie Partners.

Brexit would ‘hurt’ or ‘severely damage’ Lloyd’s of London as many as 68.7% of market practitioners believe, it was reported in research commissioned by the London-based re/insurance-focused public relations consultancy.

Slightly more than a quarter (25.1%) believed a Brexit would have no impact and 6.2% said it would benefit Lloyd’s.

Of the respondents, 69.9% sell directly into the EU. Of the remaining percentage, 58.2% sell indirectly into the EU. Only 12.7% sell nothing into the EU.

Meanwhile 70.3% said they work with colleagues from other EU nations.

Nearly 59% believe that the EU’s single market for insurance is the best realistic international regulatory regime’ for Lloyd’s insurers, Haggie reported.

As the Lloyd’s market continues to expand its international presence, 45.8% of respondents chose the EU as the top priority for development, compared to 23.7% selecting China, 16.2% Latin America, 10.7% India, and 5.5% the Middle East.

“Lloyd’s centrally has clearly stated its preference for Britain to stay within the European Union, and this research shows that, from a business perspective at least, the vast majority of companies in the London market agree,” said Adrian Leonard, who constructed the survey.

John Nelson, Lloyd’s chairman is due to step down next year. When questioned on who his replacement should be, the majority of respondents said an insurance industry veteran.

The next chairman should be a either a Lloyd’s insider, said 24.1%, or an insurance professional from outside Lloyd’s (34%).

However, 41.9% said they would prefer a professional from outside re/insurance, from another area of business.

“As well as the obvious – but far from unanimous – support for remaining in the EU, the survey has uncovered some tensions at Lloyd’s,” Leonard said.

“Brokers may not be looking for business in the places where insurers want it to come from. More important, perhaps, the strategic objectives of Lloyd’s leadership don’t seem to be entirely in harmony with what underwriters want.

“Most believe the chairman should be an ambassador for the market first and foremost. There is less support for strategic decision-making from the top floors of Lime Street,” he added.

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