In a survey undertaken by the London & International Insurance Brokers’ Association (LIIBA), nearly a quarter of broking houses have chosen Belgium as their hub. Ireland and France were the next most popular locations, accounting for 16 per cent each.
Christopher Croft, CEO of LIIBA commented: “Brokers have worked hard to ensure that they are prepared for Brexit. Our members have taken prudent and positive steps to ensure that they have ‘reverse branches’ in place to be in a position to continue to support their clients in the EU. We are confident that whatever the outcome of the negotiations, London will still be able to play a key role in helping European businesses to manage their risks.”
Brokers left to make their own arrangements
Croft added that he is not surprised Belgium was chosen as a location for many brokers’ EU entity, since the Ministry of Finance there took a proactive and pragmatic approach to creating a regulatory, tax and employment framework. “Deal or no deal is unlikely to make any difference for brokers because there is no equivalence framework for insurance distribution.
“The almost complete focus on the concept of equivalence by both our government and EU has meant we have always known we would need to make our own arrangements to carry on acting in the best interests of our clients. It is good to see that our members have done that challenging and expensive work and that their clients can look beyond the end of the year with confidence.”