Broker and insurance technology group Ensurance will begin operations in the UK next month as part of its drive to enter the huge European Union market.

The Australian Securities Exchange-listed company has embarked on a capital-raising exercise via a $3 million convertible note placement to finance the expansion and other initiatives, including growing the domestic operations.

“Our expansion into the UK is an important milestone for the company because the country is recognised as the global hub for the insurance industry,” MD Stefan Hicks said.

“What is just as significant for investors is that our international expansion is built on our strong and growing domestic operations.

“We are constantly adding new insurers, products and distribution partners to our network, and we anticipate we will make a number of exciting announcements over the next few months.”

“We will be obtaining a licence firstly to operate in the UK, and later applying for a licence in the EU,” Mr Hicks told insuranceNEWS.com.au. “The Brexit effect is completely unknown at this stage as nothing has changed. 

“It will depend on future negotiations. The industry is saying ‘business as usual’.”

Global insurers have voiced fears that Brexit means companies in the UK will lose the right to provide financial services throughout the EU, commonly known as passporting.