Can the City survive Brexit?

[TreasonousBastard]

2. This is all too true. When I was an insurance underwriter I regularly dealt with London insurers...

and they were unique in the world. They had hardly any competition in excess, surplus and reinsurance lines. There are American reinsurance companies, but they reinsure themselves in London. I used to remark that everything on the planet was ultimately covered by one little guy in a bowler hat and a heart condition.

This happened largely as a result of the Empire. As the Brits controlled much of trade, they also controlled much of the financing of trade, including insurance. Their banks were worldwide, as were their insurers, and managed to squeeze pretty much everyone else out.

Much of our current maritime law and practice is firmly rooted in British law, and that led them to places even Americans couldn't go. We tried to use our overall economic dominance to set up American P&I clubs, hull syndicates, and even local Lloyd's groups, but the effects were ultimately laughable and largely limited to American flagged shipping, of which there is very little. London had no such limitations, either corporate or legal, and sources of funding we didn't.

Things are changing, but slowly. Japan, China, and Korea have drawn inward as their capital pools have expanded, and heavyweights like India and Australia may not be as reliable as markets any more, so their place in the EU is more important to them now. They will still be there, but as an outsider with no special access.