UK brokers give Brexit confidence boost to London insurance market

80% of brokers are confident London insurance market will retain its global position

49% expecting double-digit growth in their business over the next 2-3 years

Only 2% have contingency plans to move business to EU post Brexit

The latest business confidence survey conducted on behalf of DAS UK Group, the UK’s leading legal expenses insurer, has found that 80% of UK insurance brokers expect London to retain its place as a leading global insurance market, despite the country’s decision to leave the European Union.

The ‘DAS Market Barometer’ of 250 brokers also found that a similar number were bullish about business prospects over the next two to three years, with 79% expecting their company to grow. Almost half (49%) of those surveyed were even more optimistic, expecting revenues to grown by more than 10% over the next two to three years.

Growth optimism amongst brokers was highest in the South East of England and London with 87% and 85% respectively expecting to grow. The least optimistic region was Wales with 58% responding positively, followed by Scotland and Northern Ireland at 69%. Overall, only 2% of brokers surveyed expected to downsize over the next two to three years.

Over a year after the Brexit referendum vote, the research shows that, not only does confidence remain in London’s position in the global insurance market, but few brokers have plans to leave the UK. Of the 250 brokers surveyed, only five have made contingency plans to move part or all of their business operations to the EU once the UK has withdrawn from the European Union.

DAS’s latest Market Barometer also shows that brokers are more optimistic than their clients. Of the 250 SME’s who were surveyed in the previous quarter, 55% SME owners expecting to grow and 9% to downsize over the next two to three years*.

James Henderson, Managing Director Insurance UK & Ireland, DAS UK Group, said: “It’s clear from our latest quarterly survey that broker confidence both in their own business performance, and London’s ability to facilitate it, remains very buoyant. Furthermore, with only a small number making any form of contingency plans to set up in the EU, I hope this optimism is rewarded by the government’s negotiating team as they consider the needs of brokers and the wider UK insurance industry.”