Insurance & Brexit – Are we covered?
2018 07 17
In 255 days’ time at 11pm, we will have officially completed our messy divorce with Europe.
But what is going to happen at 11:01pm, especially within the insurance industry? I would love to sit here and highlight the key points that will come into effect, but the problem is we still don’t know the repercussions of the referendum results from June 2016. Two weeks ago, we saw the Foreign Secretary, Boris Johnson and the Brexit Minister, David Davies, resign over the deal that the Prime Minister has agreed for the UK.
But how are insurers reacting? Can they even react given the uncertainty of the deal that has been agreed? And what about the non-UK companies that underwrite insurance here?
According to the ABI White Paper “UK Insurance and Long-Term Savings – The state of the market” the UK insurance market was valued at just under £225 billion in 2016 with 924 companies authorised to underwrite some form of general insurance business. Two thirds of the market is actually underwritten by non-UK companies which equates to a vast sum of money and huge customer base that rely on the services of these insurers (and don’t forget us brokers!).
Let’s just hope that in 255 days’ time those non UK insurers are able to find a way to continue to service their clients and their enormous contribution to the UK insurance market.
Daniel Edwards, Commercial Account Manager