There has been some discussion within the insurance industry as to the effect of Brexit upon the rating of insurance carriers based in the United Kingdom (UK), including Lloyd's of London.
Our market leading General and Professional Errors and Omissions Policy is placed with underwriters at Lloyd's and some concern has been voiced that one of the effects of the upcoming Brexit could be a downgrading of the Lloyd's rating. For those of you that do not follow events in the UK with the same interest as I, Brexit relates to the potential withdrawal by the UK from the European Union.
To take effect, Article 50 of the EU constitution would need to be triggered by the UK after which there would ensue 24 months of negotiations. The UK is not at present showing any immediate desire to hit the trigger until at least some time in 2017. You can therefore see that nothing that could effect Lloyd's rating will occur prior to some point in 2019 and I see no immediate concerns.
At this time, I am not concerned, but will continue to monitor the situation and provide you with periodic updates. For more information on this or any other aspects of our insurance programs, please contact me, Paul Barnard, at paulbarnard@csia-insurance.com or (610) 507-6595.