The association’s CEO, Steve White, said: “Millions of clients who rely on insurance cover to comply with the law, to fulfil conditions of contract and to protect their businesses, themselves and their families will be affected if the ability to continue trading freely with both UK and EU firms is lost.”
He explained that BIBA has been lobbying several of its government’s departments and regulators to express the concerns of its members, find an official solution and deliver clarity.
Separately, market solutions are being put forward, but BIBA explained there is no silver bullet. For example, some multinational insurers are using the International Underwriting Association of London’s (IUA’s) Brexit clauses, which may prove to be an effective solution in many cases, Mr White said.
However, individual contracts of insurance will vary and insurance providers will have differing circumstances, approaches and solutions, he continued.
“Each scenario will need to be considered on its own merits and any insurance buyer can seek advice from their insurance broker about their specific insurance arrangements,” said BIBA’s CEO.
“What is clear, is that there are many uncertainties around Brexit and many different models raise many different risks. Circumstances and degrees of concern will vary from insurance buyer to insurance buyer and from insurer to insurer, so there is not one single solution to mitigate these risks,” he explained.
Making sure insureds enjoy contract certainty in the increasingly likely scenario of a no-deal Brexit is a growing concern, London market representatives have previously warned. Some fear that a watertight market solution might not be feasible and are lobbying regulators to come up with an official response.
Ongoing disagreement on the Northern Ireland border and lack of consensus within its government on Brexit has increased fears of a disorderly UK departure from the EU.
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