As North Club and Sunderland Marine mention, they rely on EU passporting rights to insure risks located in the European Economic Area (EEA).
Following Brexit, their expectation is that the existing passporting rights will ultimately be lost either immediately upon termination of the UK’s EU membership or at the end of any agreed transition period.
Because of these developments, the North Club will hold a meeting of the North Board of Directors on 8 November 2017 that a subsidiary insurance company should be established in Ireland to underwrite all future EEA business of North and Sunderland Marine with effect from 20 February 2019.
The key reasons for choosing Dublin include:
- The regulatory, legal and taxation framework in Ireland is similar to the UK, where North is an experienced operator,
- A mature regulatory system with substantial experience in the supervision of Solvency II insurance companies,
- A strong talent pool within the financial services sector,
- Easy travel connections from Newcastle,
- The ability to conduct business in English.
The plan's implementation phase is expected to begin in the first quarter of 2018.
Furthermore, according to sources, another P&I Club will launch a subsidiary in Ireland.
The Standard Club is planning to install a new European Union subsidiary in Dublin, as a measure in case Britain loses its access to the market after Brexit.
Moreover, this year other P&I clubs as well have been exploring new locations possibilities including Luxembourg and Cyprus.
Finally, in order to ensure that these Members are not unduly inconvenienced by Brexit, the UK P&I Club will establish a subsidiary in the Netherlands.
The decision was made during UK Club's meeting on 30 October 2017.