|
|
Risk managers can rest relatively easily as the Brexit deadline looms, because the vast majority of carriers have already enacted their worst-case no-deal scenarios. Most have set up EU operations in Belgium, Dublin, Luxembourg or elsewhere to service EU-based business, and transferred existing policies to the new carriers via so-called Part VII transfers, explained the experts.
But the panellists agreed that, while the majority of UK insurers that have European customers have already set up EU-based and EU-regulated companies, there are some exceptions. Risk managers need to act fast, contact their brokers and double check the validity of their coverage after 29 March, the date the UK is scheduled to leave the EU.
“But I would advise risk managers to check their coverage with their brokers because not all UK insurers have done this. A survey was recently published that showed that about 20% of companies have no Brexit plan. This is a risk,” explained Chris Wallace, executive director for European markets at QBE International.
So what are the main Brexit-related risks that risk managers should focus upon once they are assured their coverage is valid and valid claims will be paid?
Mr Wallace said tax needs to be examined because once the UK leaves the EU it will be working under different international tax laws, if there is no deal.
Contracts will need to be closely looked at, particularly those involved in the supply chain. Mr Wallace said a checklist of how new contracts are created would be advisable.
Another key area is, of course, employment. Companies need to check the status of their staff and make sure they can continue working under the new rules.
Other important areas to consider are intellectual property and data protection. After any transition period the UK may operate under different rules, so this has to be considered sooner rather than later, said Mr Wallace.
Full article on Commercial Risk (subscription required)