Partner Article

Newcastle-headquartered ship insurer to trigger Brexit contingency plans

The North of England Protecting and Indemnity Association (North P&I Club) has revealed plans to launch an EU subsidiary based in Dublin, a contingency move incase Britain loses access to the single market.

The marine mutual liability insurer, headquartered in Newcastle, along with Sunderland Marine both rely on EU passporting rights which insure risks within the European Economic Area (EEA).

Many UK insurers operating in the market, a market which Britain largely leads, believe the decision to leave the EU will result in a loss of passporting rights, which allow firms to trade in Europe without needed locally regulated bodies.

As well as Ireland being an EU member, North said the decision to locate the subsidiary in Dublin was down to its regulatory, legal and taxation framework being largely similar to that of the UK.

North released a statement today on the matter, which read:

*Details of the future UK/EU trading relationship and its implementation are currently unknown and subject to ongoing negotiations between the EU and the UK government. However, our expectation is that North and Sunderland Marine’s existing passporting rights will ultimately be lost either immediately upon termination of the UK’s EU membership or at the end of any agreed transition period.

*Due to the ongoing uncertainty surrounding the future regulatory landscape, and a realistic prospect that passporting rights could be lost as early as 29 March 2019 on expiry of the current two year Article 50 notice period, it was agreed at a meeting of the North Board of Directors on 8 November 2017 that a subsidiary insurance company should be established in Ireland to underwrite all future EEA business of North and Sunderland Marine with effect from 20 February 2019.

The structure and local operations of the Irish subsidiary are subject to on-going investigation and a future announcement will be made in respect of these issues during implementation phase of our contingency plans, which is expected to commence during the first quarter of 2018.

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