As the UK triggers the process of leaving the EU, its insurance and risk management association Airmic has said there should be only a minimal impact on insurance buyers.
The UK fired the starting gun on the Brexit process this week, triggering Article 50 of the Lisbon Treaty by notifying the EU of its intent to leave.
While not catastrophic, Brexit is likely to prove an irritation for the UK insurance sector, Europe’s biggest insurance market and home to the world’s largest international insurance hub. Many European companies underwrite international and specialty risks in London, while multinational companies from around the global, including those in Europe, place risks in the market.
Crucially, Brexit could see insurers in London lose passporting rights, which enable carriers to underwrite throughout the EU.
“Whilst members would support the continuation of passporting, the insurance market has well developed plans to enable them to continue to provide an equivalent service for clients even if passporting rights are lost in the negotiations,” John Hurrell, chief executive of said.
“There may be some additional administration costs but the overall impact should be minimal on buyers,” he said.
Insurers are working to pre-empt the negative implications of Brexit – such as the potential loss of passporting.
Those currently operating out of London are looking to establish EU carriers and platforms, and at potential for fronting arrangements, according to Mr Edwards.
Similarly, EU insurers are also looking to obtain UK licences and/or fronting arrangements, he said.
Full article on Commercial Risk (subscription required)
© Commercial Risk Europe
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article