The need to attract talent is a primary concern of London market re/insurers choosing a European subsidiary to maintain EU business after Brexit, American International Group (AIG) has said.
Speaking at the International Insurance Society's global insurance forum meeting in London, Anthony Baldwin, AIG's chief executive for Europe, Middle East and Africa, said the ability of a location to attract skilled workers was a critical factor in the firm’s decision to choose Luxembourg.
AIG's choice of Luxembourg in March has been followed by several other insurers choosing Luxembourg to relocate EU business presently done from their London offices, making it the most popular Brexit destination for London market insurers; CNA Hardy, FM Global, Hiscox, Liberty Mutual and RSA have all opted for Luxembourg
As well as highlighting the country’s developed insurance advisory sector, Baldwin pointed to the benefit of the country’s broader financial advice sector.
The experience of Luxembourg’s insurance regulator, the Commissariat aux Assurances (CAA) also played a key role in AIG’s choice of location, the executive said.
In the first quarter of 2017 Luxembourg registered 46,816 employees on the payroll of insurer and financial services firms, up from 23,549 in the first quarter of 1997.
Meanwhile, the number of insurance companies based in Luxembourg increased from 76 to 97 between 1994 and 2014 as gross premiums written in the country jumped from €1.5bn to €26.9bn over the same period.