UK P&I at “advanced stage” in Brexit plans, plans EU subsidiary

UK P&I Club is at an advanced stage with its Brexit plans, with the current assumption being that passporting rights will be lost, Club chairman Alan Olivier writes in his foreword to the review of financial year 2016/17.

Olivier said that “although the precise trading relationship between the UK and the EU remains uncertain, the Club is at an advanced stage in its Brexit response plan”, adding that the Club now assumes that its passporting rights, which currently allow insurers based in the UK to conduct business throughout the single market, will be lost when the UK leaves the European Union.

“The Board has determined that the Club should be in a position to continue providing services to Members throughout the EU and that a subsidiary insurance company be established in Europe for this purpose”, said Olivier, adding that the club was currently in discussion with regulators and advisors to determine the most appropriate location for the new facility, “with a view to commencing the establishment process during 2017”.