Lloyd's of London CEO Has Two Brexit Contingency Plans

The video discusses the impact of Brexit on the insurance market, highlighting a 22% profit increase due to exchange rate changes. It outlines contingency plans for maintaining EU market access, including setting up subsidiaries or obtaining branch licenses. The Bank of England advises against cutting rates, emphasizing risk management. The video also addresses challenges like increased claims and administrative costs, and the rise in broker fees affecting profitability.

What was one of the main reasons for the increase in Lloyds' profits?

• A rise in domestic insurance demand

• Favorable foreign exchange rates

• Reduction in administrative costs

• Expansion into new markets

What is one of the contingency plans mentioned for maintaining access to the EU market?

• Establishing a subsidiary in an EU country

• Increasing domestic market share

• Reducing operational costs

• Merging with another insurance company

Which factor significantly impacted the Lloyds market due to large claims?

• Hurricane Katrina

• European floods

• Alberta wildfires

• California earthquakes

What did the Bank of England advise against in the Lloyds insurance market?

• Expanding into Asian markets

• Cutting rates to secure business

• Increasing investment in technology

• Hiring more staff

What trend has been observed in broker fees over the last five years?

• A steady decline

• Fluctuating rates

• No significant change

• A steady rise