Approximately 70 percent of London market insurers, brokers, and service providers contacted in a new survey believe Lloyd’s of London faces harm or severe damage if the U.K. leaves the European Union.
Slightly more than a quarter (25.1 percent) believe it will have no impact, while only 6.2 percent believe Brexit, or a British EU exit, would benefit Lloyd’s, according to the survey conducted by Haggie Partners, a London-based public relations consultancy.
Haggie Partners surveyed 259 active participants in the London market in March. The respondents include Lloyd’s insurers (39.4 percent), brokers (25.1 percent), service providers (29.1 percent), and non-Lloyd’s insurers (6.4 percent).*
The survey found that 69.9 percent of respondents sell directly into the EU, 58.2 percent sell indirectly into the EU, while only 12.7 percent sell nothing into the European Union.
These sales are reflected in the respondents’ workplaces: 70.3 percent of London market practitioners said they work with colleagues from other member states of the EU. Nearly 59 percent “believe that the EU single market for insurance is the best realistic international regulatory regime” for Lloyd’s insurers, the survey said.
As Lloyd’s expands its international presence, 45.8 percent of respondents chose the EU as the top priority for development, while 23.7 percent selected China, 16.2 percent selected Latin America, 10.7 percent India, and 5.5 percent 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 Dr. Adrian Leonard, who constructed the survey for Haggie Partners.
Survey respondents believe the replacement for Lloyd’s current chairman, who steps down next year, should be an insurance industry veteran. Just over 58 percent believe the next chairman should be either a Lloyd’s insider (24.1 percent) or an insurance professional from outside Lloyd’s (34.0 percent). Nearly 42 percent would prefer a professional from another area of business.
* Lloyd’s insurers surveyed include senior management and executives of firms underwriting more than half of Lloyd’s business. Service providers include Lloyd’s investors, Lloyd’s members’ and managing agents, non-executive directors of Lloyd’s agencies, Lloyd’s coverholders and managing general agents (firms which underwrite on behalf of Lloyd’s syndicates), equity analysts, professional advisers, and software and IT consultants.
Source: Haggie Partners
*A version of this story previously appeared in Insurance Journal.