UK-regulated ship insurers are looking to Luxembourg after fears Brexit will hinder access to the EU’s financial market, industry sources say.
Briton is a market leader in marine insurance and losing access to Protection and Indemnity (P&I) clubs will hit the multi-billion pound shipping sector.
With Article 50 yet to be signed Greek shipowners have already moved many of their operations out of Britain, fearing the loss of favorable “non-domicile” tax status.
Although many financial institutions have looked to relocate after Brexit the P&I clubs whose majority share of earnings come from the rest of Europe are looking to act sooner rather than later.
The greatest concern for the clubs is the loss of “passporting” rights which allows firms to operate across Europe under the rules of just one state regulator.
Whilst Luxembourg might be a landlocked country, two P&I clubs are already regulated here with businesses liking its regulatory and tax regimes. This has lead to insurance and shipping sources to say that the Grand Duchy is among the top contenders to take this business from the UK.
A spokeswoman for Luxembourg for Finance said numerous U.K. companies including insurers were currently considering Luxembourg for their post-Brexit set-up. Other possible jurisdictions included Cyprus, Ireland, Germany and Greece.
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Source: Luxemburger Wort
