BREXIT: CERTAIN OF A PERIOD OF UNCERTAINTY

Most of us involved in shipping-related activities have heard of Lloyd's of London, one of the world's best-known insurance and reinsurance markets.

However, not everyone, as it was in my case, knew the story of Edward Lloyd, nor the reason why his surname was taken to name this market, without which it is impossible today to understand the evolution of freight transport in the last two centuries.

The idea of this visionary innkeeper was brilliant in its simplicity, installing in his Coffee House on Lombard Street a "black board" on which the cargoes and ships were inscribed, he offered his customers the possibility of insuring or betting on the maritime expeditions that were inscribed.

Whenever news of the ships listed on the black board reached London, Mr. Lloyds would ring his bell to announce the success or failure of the maritime expedition.

In this way it was intended to avoid fraud by double insurance, something common at the time (18th century), although adapting this dynamic of publicity and trial and error, inherited from the "Chambers of commerce", to the European fashion of the cafés, epicenters of political and social life and the main meeting place of a flourishing bourgeoisie.

Although our current context is somewhat different and it may seem anachronistic to speak of a "maritime adventure", Lloyd's of London continues to play an important role in the world insurance market and is a reference for the City of London, the nerve center of the international maritime business.

RELATIONS BETWEEN THE UNITED KINGDOM AND EUROPE

The end of the transition period foreseen for the United Kingdom's exit from the European Union framework was reached on January 31, 2021, giving rise to a phase of significant changes in the legal and institutional relations between the two bodies.

During the transition period between January 2020 and January 2020, the United Kingdom has maintained its submission to European legislation and its main institutions, and the individual rights of citizens and companies have not been significantly altered.

However, from January 1, 2021, when Brexit became fully effective, an intense period of negotiations and agreements will begin again and is still in the making.

Thus, in the absence of updated insurance regulations, most UK insurance companies have responded to this legislative gap by setting up subsidiaries in EU member countries; clear examples of this response include Lloyd's Group, which moved part of its operations to Belgium, and Gallagher, which has set up a branch in the UK through Nordic Försäkring & Riskhantering AB.

Despite the obvious barriers presented by Brexit, it does not seem that the UK insurance industry is willing to abandon a large part of its natural areas of influence from its "black slate", seeking to maintain its former position, so it will have to adapt to the new circumstances and bet on 10 Downing Street to ensure good relations with Europe, given the risk of losing weight and influence in the international sphere.

¡Open your bets!

By Borja Quereda Rueda
ITL LAWYERS Contributor