OREANDA-NEWS. The United Kingdom has been at the centre of insurance and risk management since maritime trade and shipping was insured at Lloyd’s in the City of London more than 325 years ago. And while the City and the Corporation of Lloyd’s are British institutions, insurance in the UK continues to dominate because it harnesses the best the world has to offer: talent, markets and innovation.

In 2015, the insurance industry contributed billions of pounds directly to the UK’s gross domestic product; and the services sector as a whole comprised 80% of the UK economy. This marketplace does not thrive in isolation. Talent is a true differentiator for the City of London, and to create a barrier between the industry that addresses the world’s most complex risks and the global talent needed to do this will reverberate far beyond the Square Mile. If Britain votes to leave the European Union, foreign investment, trade, and supply chains may be constrained. And in the event of a Brexit, the centre of excellence driven by innovation that has set London apart in the insurance space will be deeply challenged.
 
For these reasons, I believe the UK should remain in the EU.

First, it is absolutely vital for our business to attract and retain the best and brightest talent from around the world. The Lloyd’s and London insurance marketplace directly employs 34,000 experts, and thousands more when you consider the broader professional services industry. This is a key asset for this country, and would be challenged if the UK were to become isolated from Europe. A Brexit discourages the flow of talented professionals from Europe into the UK, and sends a message to global experts – the people London has historically attracted in droves – that the UK values its sovereignty more than its expertise.

Second, in today’s interconnected world, the risks of disruption are multiplied by the globalisation of even individual transactions. While a client’s insurance programme may ultimately be placed in London, today’s risks are truly borderless. It is a daily occurrence for my colleagues to work with complex multinational clients: say, a German client to insure risks in Malaysia undertaken by an Italian subsidiary. The most challenging of these programmes are placed in the London market, based on the innovative approach to underwriting and risk transfer led by talented professionals from all over the world.

We believe that clients could potentially lose coverage options in a post-Brexit world. As an example, UK-based insurers may be disadvantaged by their lack of ability to easily do business with the European Union, a freedom they currently enjoy, and a general environment of uncertainty regarding solvency requirements after a Leave vote. Leaving the EU jeopardises the UK’s leading position in the epicentre of our global service economy.