Brexit and Lloyd's: Is This the Beginning, or Is It the End?

 
International Perspectives | Industry Applications | Michael Maglaras | Principal | Michael Maglaras & Company 

Brexit refers to the withdrawal of the United Kingdom from the European Union. Michael Maglaras, president of Michael Maglaras & Company, considers what this means for the Lloyd's of London market and for those with captive insurance companies in the Lloyd's market. While Mr. Maglaras believes that Lloyd's is not going anywhere, he expects changes. For instance, some London-based meetings may move to Dublin or Brussels. Likewise, if you have a base of risk in the United Kingdom, "passporting" insurance between EU countries may become more difficult. However, he says the talent will not change and will not leave the London market. Also, the amount of facultative and treaty capacity currently provided by Lloyd's cannot be absorbed by the US and Bermuda markets. Further, he believes that the way in which the Lloyd's market has responded creatively, succinctly, and cogently in a supportive way will not change.