Managing agencies favour the use of the Lloyd’s Brussels subsidiary over their own European subsidiary when Britain leaves the European Union, according to a poll by the Lloyd’s Market Association (LMA).

In a study in which 71 percent of Lloyd’s managing agents’ chief operating officers participated, Brexit was deemed both an internal and market-level priority issue for 2018.

The poll found that following Britain’s departure from the EU,  53 percent of managing agencies would prefer the use of the Lloyd’s Brussels hub over the creation of their own EU subsidiary.

Alongside Brexit, market modernisation was another key priority for the 39 chief operating officers who took part in the study.

Delegated authority transformation was voted the top initiative, with 93 percent stating they would prefer a straight-through processing solution.

All participants said they are planning systems upgrades in 2018.

“It is widely understood that the Lloyd’s market faces an increasingly challenging environment, with COOs having a key role to play in this changing landscape,” Tom Payne, market operations director at the LMA, said.

Chair of the LMA operations committee (LMAOC) and head of international operations at Navigators, Sheila Cameron said the voice of the chief operating officer needed to be more clearly articulated in the context of market modernisation, operational improvement and expense management.

“This survey, the first of its kind to be commissioned, will help to achieve this,” Cameron said.

“For the first time, the views of Lloyd’s market COOs have been brought together, assessed and collated with the intention of articulating the business and operational challenges faced by managing agents,” she added.