Talanx : “London is strategically important for HDI”

29 March 2017
Richard Taylor, Managing Director of the British branch office of HDI Global SE, talks about the consequences of Brexit for the insurance business

When a majority of the people living in the British Isles voted to take the United Kingdom out of the European Union, what was going through your mind at the time?
Richard Taylor: That was an absolute shock. I asked myself: Do the people in the United Kingdom truly understand the consequences of their actions?

Financial service providers leaving London could be one of the first tangible changes resulting from Brexit. After all, a lot of banks need to have unrestricted access to the European single market in order to carry out their business.
The speculation will continue until such time as the terms of Brexit have been finalised. I would expect all the affected businesses in the United Kingdom to be considering their contingency plans for all possible eventualities.
What is the position with the presence of HDI in the United Kingdom?
Naturally, our business will be affected by Brexit. But until the terms of the United Kingdom leaving the EU are known it is difficult to articulate to what extent. Individual insurers and in particular Lloyds of London are reviewing the impacts that leaving the EU will have on their business. Lloyds has already announced that it will be transferring part of its operations to another country. Nevertheless, there will still be demand for industrial insurance in the United Kingdom. London is one of the most sophisticated and competitive insurance centres in the world. As such it is strategically important for HDI. For us as an insurer with global operations there is absolutely no question about our retaining a presence in this market.

What are the consequences of Brexit for HDI Global SE - UK?
The majority of our clients are domiciled in the UK. That means we write local and regional business - that will continue to be the case. Many of our customers work and operate beyond national borders. And our clients will still need insurance post Brexit. If we are able to find appropriate solutions - which I am certain we will - then the impacts on HDI in the United Kingdom will be minimal. Quite the contrary, we are even able to see a number of potential opportunities. Even after Brexit and the potential loss of the privilege of 'Freedom of Service', the HDI Global Network will enable us to write European risks for our international customers through the network partners of the HDI Global network. The network is represented with dedicated HDI Global units in the key European countries. What's more, the situation has been positive for many companies because of the weaker British pound sterling. This is favouring imports of British goods into other countries.

People in Scotland voted overwhelmingly for the United Kingdom to remain in the EU. This is why the Scottish government have said that they will possibly start a new referendum about the independence of Scotland from the United Kingdom. What would this mean for your business?
The UK government has already ruled out a second referendum for an independent Scotland. However, should this happen in the future HDI is very well positioned to support its clients and brokers. We recently opened an office in Glasgow to be closer to our Scottish clients and the local insurance market there.
What makes this region so attractive for HDI?
Scotland as a country has its own insurance market. The most important sectors are the oil and gas sectors, and the food and drink industry. The construction industry and whisky distilleries are still seeing significant growth potential. Without a local presence, HDI is not able to effectively service existing customer relationships and penetrate the local market to develop new business.

What opportunities do you see for additional growth?
HDI in the United Kingdom is looking for steady growth in its core disciplines of Property/Casualty, Engineering Insurance and Motor. This year, we are seeking to build on the successes of 2016 by focusing on the needs of our clients and by delivering solutions across all lines of business where we can. Naturally, we are also hoping to enhance the customer experience with the assistance of digitalisation.

Can you give an example for this?
Four years ago, we set up the Motor Fleet Team writing insurance business for clients with fleets greater than 250 vehicles - if clients embrace the application of vehicle telematics. We focused on this area because we want to attract clients who are aware of the risks and want to manage these risks. Last year, we developed tools that enable HDI to deliver to our clients information about the driving behaviour of their fleet drivers on a daily or weekly basis. At the moment, this telematics solution is unique in the UK insurance market.

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