Insurance Market respond to Government’s Brexit white paper

Insurance-market-responds-to-Governments-plans-for-Brexit

Leading industry figures have responded to the Government's recently unveiled white paper on the future relationship between the UK and European Union post-Brexit:

Huw Evans, ABI Director General, said:

“Publication of the White Paper is an important step in the Brexit negotiations. Whatever the final outcome, the insurance industry is too important to be a rule taker. Having to comply with financial regulations we have no say over would be the worst possible scenario for our world leading insurance sector, so we will look to the Government to negotiate a better outcome than this.”

Dave Matcham, chief executive of the International Underwriting Association, commented:

“The IUA welcomes publication of the Government’s Brexit White Paper and is pleased that it recognises the importance of making cross border trade in financial services as efficient as possible."

“The proposed economic and regulatory partnership promises significant levels of dialogue and cooperation between EU and UK insurance supervisors. This will be important in establishing a secure and stable trading environment upon which companies and their clients can confidently rely."

“We hope that this proposal will allow for the continued cross-border transaction of both reinsurance and large scale wholesale risks for marine and aviation business and that it forms the basis of an enduring trading relationship.”

Christopher Croft, CEO, London Insurance and International Brokers Association said:

“We are disappointed that the Government has not reflected the strong feedback from our industry that both EU clients and UK business would be best served by a mutual market access regime.  We will work with our members to understand the full implications of what is being proposed.  As always, central to that effort will be a focus on how we ensure that the client is the one to suffer least from the disruption Brexit will cause."

"The issue of contract continuity must be resolved.  There is some doubt as to whether UK insurers will remain licenced to pay claims in a few EU countries without an agreement in place. We therefore support the call by the FCA Chief Executive Andrew Bailey for this to be resolved at official level.  The sooner the better.  Transition arrangements will only postpone the issue.”