Lloyd’s will move some business out of London if the UK fails to maintain passporting rights to the EU during Brexit negotiations, Chairman John Nelson says.

“We are very much of the view that retaining access to the EU single market is fundamental, not just for Lloyd’s but for the City in general,” he told the annual Lloyd’s City dinner last week.

“If we are not able to access the single market, either through passporting rights or other means, the inevitable consequence for Lloyd’s… will be that we will transact the business onshore in the EU.”

London’s insurance powerhouse status is due in no small measure to EU passporting rights –the freedom to provide services to an affluent market of 500 million consumers and 21 million SMEs.

About 11% of Lloyd’s business comes from the EU, and the bloc’s importance cannot be overstated, Mr Nelson says.

“I think what we have to remember is that London, the UK, is the global hub for specialist insurance and reinsurance,” he told the BBC.

“It is one of the very few industries where the UK is right at the forefront, and from our point of view, obviously London being open for business for everybody is extremely important.”

He says what the business community needs is decisiveness from the UK Government.

“If there is uncertainty for a prolonged period of time, then people and the industry will vote with its feet. If we do not see a clear direction… we will have to invoke our contingency plans and that would mean moving business or business leaving London in a quicker way than, say, the renegotiations timetable.

“So, therefore, clarity is important, clarity fairly soon.”