The North Protection & Indemnity Club is preparing for post-Brexit possible fallout by
creating a European Union subsidiary in Dublin, according to their press
release at the end of November.
The North fear that Britain may lose access to the EU single
market after Brexit. As a result, they and many other British-based insurers, are making
contingency plans in case they lose "passporting rights" that allow U.K. financial service
firms to trade in Europe without the need for locally-regulated entities.
The North is one of the first to announce the location for an EU
subsidiary and it is expected to start implementing its contingency plans in
the first quarter of 2018, according to their release.
The firm said that due to "regulatory uncertainty and a
realistic prospect," passporting rights could be lost as early as March
2019 upon the current two-year Article 50 expiration. Therefore, its board
agreed that a subsidiary insurance company should be established in Ireland.
“The decision to locate the subsidiary in Ireland follows an
extensive horizon-scanning
exercise during which a number of possible locations were considered,” said The
North. They cited the regulatory, legal and taxation framework, a mature
regulatory system, a strong talent pool, easy travel connections and lack of
language barriers as the motivation for their choice of Dublin.
For more information, their press release is online at: http://www.nepia.com/news/press-releases-area/statement-from-north-pi-club-regarding-brexit/
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