Press Release - JANUARY 31, 2019
AM BestTV: Gibraltar Insurers Prep for Impact of Brexit, UK Motor Changes, Says AM Best Senior Director
FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 31, 2019
Thomas discussed how Brexit will impact the market.
“Gibraltar is a member of the EU by virtue of its U.K. membership. Once this is relinquished by the U.K., Gibraltar will lose the benefits of EU membership, such as passporting rights. For the majority of Gibraltar insurers, this will not be a significant issue, as almost 90% of premium emanates from the U.K. For those insurers that are writing business in the other 27 EU countries, they will either have to put contingency plans in place or cease to underwrite this business,” she said.
Thomas also discussed the state of the Gibraltar insurance market.
“The overall earnings for Gibraltar insurers generally have been good in recent years with return on equity measures being in the high single-digits, helped by ancillary underwriting income,” said Thomas. “U.K. motor, the principal market in which they operate is subject to considerable competition, which has meant considerable pricing pressure in recent years.”
To access a copy of this market segment report, titled, “Gibraltar Insurance Market Enjoys Solid Performance but Brexit Creates Uncertainty,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=280313 .
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