Brexit: UK businesses 'can't live' with uncertainty, Lloyds of London boss warns

Inga Beale says the insurance market firm will open a subsidiary in Brussels to continue trading within the EU

Inga Beale fears for businesses in the UK as Brexit looms (REUTERS)

Brexit negotiations are causing anxiety for UK businesses, many of whom “can’t live with this uncertainty”, according to Lloyd’s of London boss, Inga Beale.

The insurance market’s chief executive told CNBC on Wednesday that it had “taken its future into its own hands” by opening a subsidiary in Brussels to continue trading within the EU.

She said that approximately €2bn (£1.7bn) of Lloyd’s of London’s business must pass through an EU-based subsidiary and that the insurer will lose all of its European licensing once Britain leaves the European Union.

"The uncertainty is really not helping the population at large, and people want to know what's going to happen, but of course we've just started to see the pound start to recover a little bit against the dollar so it looks like there could be a bit of confidence coming back”, said Ms Beale.

Ms Beal said Brexit debates were “difficult to have out in the open, in other words, there's a lot of posturing having to go on”, she said. “So business doesn't know the inner workings and what's really being negotiated behind the scenes so we're still living with uncertainty."

Ms Beale added that more clarity before the end of the first quarter would “give some comfort” but warned that clarity is not the same as legal certainty.

“In spite of what they might be able to negotiate in terms of 'do we have another two years, three years or four years to implement the exit?' but that's not necessarily going to help us and we need certainty", she said.

Brexit Secretary David Davis indicated on Wednesday that the UK will not refuse to abide by new EU rules passed during the transition period, when the UK has no power to shape them.

Ireland has touted itself as a potential base for UK businesses worried about selling products and services to the EU after Brexit.

Ireland’s financial services minister Michael D’Arcy said on 14 January that it could be “part of the solution” for London-based finance firms looking to continue trade with clients across the bloc without restrictions.