Ireland is experiencing an influx of financial investment – and it’s all thanks to Brexit. Dublin is competing with Luxembourg, Brussels, Paris and other European financial centres.
On June 6, insurer QBE, a big international player based in Sydney, said it was to follow Lloyds and set up its EU base in Brussels. RSA and CNA Hard have both this week chosen Luxembourg.
As reported by The Irish Times, a vital few months now lie ahead as the remaining major players finalise their plans.
Dublin has had its insurance “wins” in recent months. Standard Life selected Dublin to serve as its base in the European Union. Also, Legal & General is boosting its investment management operations Ireland and Aviva will reinstate its Irish operation as a fully-fledged subsidiary.
But Ireland has lost some battles, such as AIG’s decision to choose Luxembourg and the call by Lloyds of London (the big insurance syndicate) turned to Brussels.
According to The Irish Times, hope that Dublin would be the first choice for most insurers based in London now looks misplaced.
Ireland’s Minister of State Eoghan Murphy said other EU countries were engaged in “regulatory arbitrage” – in other words, soft regulation in return for investment. However, they are all bound by the same rules – the Solvency II Directive that harmonises EU insurance regulation.