Building Block Insurance PCC Ltd (BBI), the Malta-based insurer, will deliver an optimistic message to brokers, insurers and MGAs uncertain about the impact of triggering Article 50 on their business, at this year’s BIBA Conference in Manchester.
Following the Prime Minister’s decision to trigger Article 50 of the Lisbon Treaty in March, BBI CEO Paul Brierley will urge delegates to think proactively about the opportunities from partnering with insurance businesses like BBI which have the advantage of being able to trade in the European Economic Area.
“We are keen to talk to progressive companies that want to build bridges to Europe, not tear them down, and at BIBA we will be there to advise insurers, brokers and MGAs how to go about it,” he said.
Brierley explained that Malta permits companies to passport their licence to write insurance business into any EU/EEA member state and its legislation enables the transfer of business of insurance by means of portfolio transfer in general insurance. Furthermore, he added: “Malta offers a well-regarded regulatory system, an English-speaking workforce and a competitive cost and tax system.”
He said that Malta is also building a reputation as a centre of expertise for Protected Cell Companies (PCCs), including BBI. A PCC is a structure which enables companies wishing to write insurance to come together within a protected cell framework to share overhead costs while being protected from each other’s liabilities.
Brierley said that another option would be fronting, where BBI could issue insurance policies to EU/EEA insureds with the risks transferred via reinsurance to captives, insurers or reinsurers situate in the UK, Gibraltar or elsewhere in or outside the EU.
“We offer a Brexit hedge for companies that don’t have the size and scale of an RSA or Aviva,” said Brierley, who added: “We are already experienced operators in the UK market, thanks to our own fast-growing UK operation, but our Malta heritage makes us EU-savvy, and we are keen to share our expertise and offer help at this year’s BIBA.
Brierley warned delegates not to wait another 12 months before getting good Brexit advice. “I’m sure Brexit will be on the 2018 BIBA conference agenda too, but by then it may be too late. Companies need help now and I urge them to visit Building Block at stand B42 to get practical support on how to thrive and prosper in a post-Brexit world.”