April 16, 2021

65 British insurers study how to stay in Spain if there is hard Brexit | Companies

65 British insurers study how to stay in Spain if there is hard Brexit | Companies



Hundreds of thousands of Spaniards have received an email in recent months from their British insurer: "Dear customer, as a result of the decision of the United Kingdom to leave the European Union, our intention is to transfer your policy to our new insurance company " This is one of the messages repeated by companies that used their matrices in London to subscribe the policies in Spain. The threat of Brexit has made them look for the best formula to continue serving here.

In the Directorate General of Insurance and Pension Funds (DGSFP) there are about 70 British companies that were operating in Spain under a regime of freedom to provide services. That is, since they had the authorization to operate by the supervisory authorities of the United Kingdom, they could operate directly in other countries of the European Union without being accountable to local supervisors.

Some of these companies have already taken measures to cover their business should the negotiations between London and Brussels wreck to achieve a friendly divorce. This is the case of the Admiral group. A few months ago he registered the companies Admiral Europe Insurance Company and Admiral Intermediary Services, to continue giving service to the clients of their brands Balumba.es, Qualitas Auto and Rastreator.com. In its case, in addition to creating new subsidiaries, it has opted to transfer part of its British operations to Spain, where its current business amounts to 73 million income from premiums.

They have also sent notifications of assignment of portfolios (from British companies to subsidiaries in other EU countries), the Prudential group, Hiscox Insurance, Domestic & General Insurance (which offers insurance for appliances acquired in Mediamark and Master Chain), AIG Europe, QBE Insurance and Tokyo Marine Kiln.

"The purpose of the transfer is to be able to continue lending the coverage of your policy and conduct business in Europe after the Brexit. We assure you that the transfer will not imply any change in the costs of your policy and that there will be no variation in any of its characteristics, ensure these letters sent to customers.

In addition to the aforementioned companies, there are another 55 insurers that are based in the United Kingdom and that have the authorization to operate in Spain under the regime of freedom to provide services. Among them, there are several groups specializing in reinsurance, others in marine insurance and several life insurance subsidiaries of major international insurers (Berkshire Hathaway International Insurance, Scottish Widows, Scor …).

Other registered companies have little activity, or have other European subsidiaries through which they can continue to provide service in Spain.

The case of Gibraltar

In the Directorate General of Insurance there are also registered five Gibraltarian companies that would also have limited capacity to operate in Spain in the event of a drastic break with the European Union.

The most significant case is Millennium Insurance Company, which now operates under the trademark to MIC Insurance. This company is one of the leaders in surety insurance (a policy that must be signed by almost all the companies that contract with the administration).

In a letter addressed to his clients and collaborators, he explained that in case of hard Brexit, "the most suitable solution that ensures the service, with the same level of quality and security that is currently provided, both to customers and brokers who currently work with the Company ".

MIC Insurance issued surety insurance in 2017, worth 13.2 million euros, and maintains a market share close to 22%.

Another company that has taken action is the Lloyd's group, the largest insurance and reinsurance market in the world, which moved part of its operations to Belgium. "After the establishment of Lloyd's Brussels, our partners in Spain and throughout the continent will continue to have the same and unparalleled access to the specialized policies provided by the Lloyd's market," explains Juan Arsuaga, Lloyd's president and CEO for Spain. .

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