Lloyds, IUA, Fidelis say Brexit puts 34,000 insurance jobs at risk

Stately, grand old Lloyds, along with a few others, would like folks in commercial insurance to know that when it comes to Brexit… No, you’re not covered for this.

On Friday, the major insurer, along with  the International Underwriting Association of London and the group executive officer of Fidelis, Richard Brindle, released a joint paper with a list of dire predictions. The report says many of the 34,000 people employed in London’s commercial insurance sector would likely be sacked (that’s Britspeak for “lose your job.”). And more job loss is also expected for the tens of thousands who work in an indirectly related field.

Even as these warnings came in, The Telegraph reported that JP Morgan said it may have to move many UK-based jobs to other spots in Europe.

Read: Lloyd’s Chairman says Brexit ‘will be no regulatory nirvana’

The report also found that underwriting companies are already making contingency plans to move outside of Britain. Meanwhile, those that decide to stay will be put in a difficult position: they will still be subject to EU regulations that they have no say in.

Watch: Patrick Stewart gets schooled on the whole Brexit, human rights debate

Chief executive of IUA Dave Matcham said, “Feedback from our members clearly shows that the benefits of EU membership are highly valued and the possibility of these advantages disappearing is of grave concern.”

Brindle said London is the world’s leading market in insurance because it is “outward-facing” and because businesses can easily access the EU and global markets. “Brexit would jeopardize our leading position, and bring no advantage from any perspective, whether regulatory, economically or for our reputation. It’s highly likely that if we were starting a business post a Brexit vote, we would be headquartered elsewhere in the EU.”

This story was originally published by Canadian Insurance Top Broker.