RSA's UK business will transfer all of its passported business for commercial customers to its recently approved post-Brexit hub in Luxembourg.
The business, which equates to less than 5% of the insurers total UK income, is to be transferred from RSA Insurance PLC to RSA Luxembourg next year in a move to ensure contract continuity for the insurers commercial clients in the wake of the UK’s exit from the European Union.
Tony Buckle, managing director of Global Risk Solutions at RSA, described the amount of premium coming from the European Union that will need to be transferred to the insurers new European hub as an “incredibly small amount”, and said that he did not expect any jobs would be lost as a result of the transfer.
Speaking on the sidelines of the Association of Insurance and Risk Managers conference in Liverpool, Buckle told Post that all of the overseas business from RSA’s European branches is currently written through the insurers UK entity. However, this will change once the Luxembourg hub becomes the European headquarters.
“All of that business will be transferred to Luxembourg,” he said. “We have freedom of services business written out of the UK into Europe but this represents an incredibly small amount of total RSA UK business – approximately 4%.
“The branch business is relatively substantial but the amount of direct business lost to Luxembourg is tiny. This is particularly true when seen in the wider context of the size of our personal lines business in the UK.”
Buckle’s comments follow news that RSA’s post-Brexit Luxembourg hub has been granted approval by the country’s regulator, the Commissariat aux Assurances.
The MD added that business would be written from the new European base from 1st January 2019, just in time for the 1/1 renewal period.
Originally announced in June last year, RSA’s Luxembourg decision came off the back of moves by insurers AIG, FM Global and Hixcox.
The locations central location in the EU bloc, ready access to clients and its regulators ready relationship with European insurance bodies such as the European Insurance and Occupational Pensions Authority were all deciding factors in Luxembourg being the tope choice, Buckle said.
The new office will originally house up to six people with this figure climbing to the “young double digits over time”. It will become the headquarters for the insurer’s existing EU offices in Belgium, France, Germany, Spain and the Netherlands, Buckle said.
“This is where the direction will come from, there is no ambiguity there. We’re moving our real management to Luxembourg with Richard Turner leading our European business. This is not a front – it will become our European headquarters,” he said.
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