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Getting Brexit done

Modern Insurance Magazine discusses the impacts Brexit may have on the UK insurance industry.

Since the referendum vote on 23 June 2016 went in favour of the withdrawal of the United Kingdom from the European Union, much has been discussed about the effects Brexit will have on the UK insurance sector and, crucially, how to avoid disruption to customers.

So, as we edge closer to a deal or no deal, just what does getting ‘Brexit done’ mean to the UK insurance sector? What has been the impact so far on the industry and, post-Brexit, will the EU Single Market still be important to UK industry’s insurers and brokers? How does the sector view the possibility of a no-deal scenario and has the industry been adequately consulted and involved, in what have been fairly protracted negotiations? And with the level of regulation and interconnection between the UK and EU financial systems, what’s the risk of policies signed pre-Brexit becoming invalid?

Once the UK finally does say ‘goodbye’ to the EU, it will have no obligation to comply with the stringent ‘one size fits all’ Solvency II regulations. Could, and should, Britain pursue similar restructuring along the lines of the Swiss or Norwegian models, both who operate independently of the EU. The Swiss model is close to Solvency II, whereas the Norwegian version allows the country to be part of the EEA (European Economic Area), although not a member of the EU, but granting free movement of people, goods, services and capital within the European Single Market. Or will the UK fully go it alone and create its own bespoke model and, if so, how long could that take? 

Modern Insurance put these and other key questions to two experts for their opinions on how the insurance sector can make Brexit work for both the industry and the customer. 

On the page opposite, Graeme Trudgill, Executive Director at BIBA, states the case on Brexit from the point of view of the insurance broker, while over the page Matt Francis, Insurance Director at KPMG UK, gives his take on how Brexit will impact the insurers.

Click here to read: Brexit: Brokering a Deal