As the debt crisis in Europe trundles on the risk of a member state exiting the Eurozone remains a real threat. Whilst it is not entirely clear what the effect of a member state exiting the Eurozone would be on the wider world economy or specific contracts it is expected that economies and businesses will feel a significant, potentially negative, impact, at least in the short term.

Insurance companies should now be considering what the impact of a Eurozone exit would be on their business by considering what their investment exposure is to the Eurozone (particularly those countries at higher risk of an exit) and also what the potential impact on their contracts will be.

Any exit will most likely be sudden, potentially happening overnight and as such businesses will need to be able to respond immediately to minimise the disruption to their business.

Clyde & Co can assist insurance companies with their contingency planning in this area and will also be ready to assist immediately in the event of a Eurozone exit.

At Clyde & Co we have an in depth understanding of the potential issues which face insurance companies in the event of a Eurozone exit. We have experience of assisting insurance companies prepare for a potential exit and have been working with the LMA to consider the contractual issues which may arise.

In addition to the above substantive assistance we can also provide the following:

  • Presentations to increase the understanding of the issues a Eurozone exit creates for insurance companies
  • We would like to offer to host a forum to enable insurance companies to talk to one another about this issue to facilitate an industry approach

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.