In the wake of Brexit, AIG in April 2018 announced it has established and received authorization for new insurance companies in the U.K. (American International Group UK Limited) and Luxembourg (AIG Europe S.A.). AIG Europe S.A. will have branches across the European Economic Area and Switzerland. The existing carrier, AIG Europe Limited, will transfer all of its existing insurance business to the new entities well ahead of the U.K.

Much has been made of borders in the speculation around Brexit. While focus has been on the Irish border, there is a generalised desire to limit the imposition of so-called “hard” borders after the UK leaves the European Union. These discussions focus on trade barriers, and what remains very much in the air is how people movement will be affected. While limiting free movement is in essence a political problem, it does have very practical repercussions.

In an assessment of the business costs of Brexit published in March 2018, Oliver Wyman and Clifford Chance have calculated the impact of tariffs and non-tariff barriers on companies if the EU27 and U.K. revert to a World Trade Organisation (WTO) trading relationship with each other. The cost of Brexit in red tape alone could total around £31 billon for EU exporters and around £27 billon for U.K. exporters,

A pioneering study from Source Global Research and published in March 2018 by Odgers Connect, shows evidence of a growing ‘professional gig economy’ of highly-skilled, independent workers that is flourishing in both the U.K. and Europe. This growth is driven by companies that have cut back on core staff and which increasingly rely on outsourced professionals. Brexit and new regulations are the two factors that favor independent consultants because

British insurer Britannia’s plans in relation to Brexit include a location in Luxembourg. A P&I club, Britannia is one of the leading U.K. marine insurers. Its contracts generally cover pollution risks and accidents at sea. 40% of gross written premiums is in the E.U. market, which it cannot cut itself off from. The company in December 2017 announced that the board of directors, after consulting with experts, had mandated

Japanese insurer Sompo in November 2017 announced it would set up its new European headquarters in Luxembourg in the wake of Brexit, citing in particular the potential loss of E.U. passporting right and looming uncertainty. The new entity, SI Insurance Europe, is to be owned by Bermuda-based Sompo International Holdings and will offer both insurance and reinsurance. Sompo is mainly a specialty provider of property and casualty insurance. The

MS&AD Insurance Group Holdings, owners of Japanese insurer Aioi Nissay Dowa, in November 2017 announced they would move their London-based subsidiary Aioi Nissay Dowa Insurance Company of Europe (ADE) to Luxembourg. The move is expected to be implemented in early 2018. ADE today operates an insurance business in Europe centered on automobile insurance. In light of Brexit, Aioi Nissay Dowa has decided to restructure its European business organization. The

Chubb in September 2017 announced that the company intends to locate its European Union headquarters in France if the United Kingdom leaves the E.U. as expected in March 2019. The company wants to remain well positioned to serve clients, regardless of the ultimate terms of the U.K.’s exit from the European Union. According to Chairman and CEO Evan Greenberg, France was the logical choice as Chubb’s E.U. headquarters as

In the context of the impending Brexit, Tokio Marine Group in September 2017 announced plans to set up an insurance company in Luxembourg for writing European business. For decades, the group has been active in the European Economic Area through several of its subsidiaries, principally Tokio Marine HCC and Tokio Marine Kiln. Tokio Marine is aiming to have the new insurance company incorporated and capitalized within the first half

American International Group (AIG) in March 2017 announced that they will open offices in Luxembourg to ensure operations in the European Economic Area (EEA) and Switzerland after Britain leaves the European Union are not affected in any way. AIG has long written business in Continental Europe from the U.K. under the umbrella of AIG Europe Limited, which has branches across the EEA and Switzerland. By 2019, AIG will have

The Association of British Insurers (ABI) published an analysis of how EU legislation impacts on the U.K. insurance and long term savings industry after BREXIT. The analysis, titled EU Exit: EU Legislation Mapping Exercise, identifies legislation that ranges from key consumer protections, such as the European Health Insurance Card and Data Protection regulations, to EU-wide prudential regulations like Solvency II. The mapping exercise identified 80 “relevant” pieces of EU

The United Kingdom following its referendum, in June 2016, decided to leave the European Union. From the perspective of global employee benefits and global mobility, the consequences are unknown as of June 24, the day when “Brexit” was announced. Not least because the modalities and the details of the forthcoming separation of the United Kingdom and the European Union are still to be negotiated according to the Treaty of Lisbon,