A message from Lloyd's Chairman to the market on the Brexit referendum

Now that the Brexit referendum has been set for Thursday 23 June 2016, I wanted to write to you regarding Lloyd’s position.

The Council of Lloyd’s and the Franchise Board have carefully considered the question of British EU membership in the context of the interests of the Lloyd’s market. We have unanimously concluded that the best outcome is for the UK to remain a member of the EU.  As you may be aware, we have been developing contingency plans in the event that the referendum results in the UK leaving the EU.  We are seeking to ensure that in such circumstances the Lloyd’s market can continue to access those markets.   Inevitably, that access will not be as attractive as the single market access we currently enjoy.
Our Chief Risk Officer, Sean McGovern, recently gave an excellent speech at Lloyd’s which clearly sets out the consequences of leaving the EU for the London insurance market.  Here is the link to his speech (https://www.lloyds.com/news-and-insight/press-centre/speeches/2016/02/the-implications-of-brexit-for-the-london-insurance-market).

For many of us this will be one of the most important votes we will have ever cast. It is for this reason that I signed a letter along with other business leaders stressing the importance of remaining inside the EU and I intend to continue putting forward the case for UK membership whenever I can.

The UK choosing to leave the EU will be an irrevocable decision.  Membership of the EU is a significant attraction for direct investment into the UK   - and indeed into Lloyd’s.  As a market, membership of the EU not only provides us with passporting trading rights with the other 27 member countries, but Lloyd’s also benefits directly and indirectly from the many trade agreements that the EU has in place with other countries and may negotiate in the future.  

Membership of the EU will be a crucial element in London being able to retain and reinforce its pre-eminent status as the global hub for insurance and re-insurance.

With Best Wishes

John Nelson
Chairman of Lloyd’s

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