Reinsurance News

ABI calls on new Government to support industry and secure an orderly Brexit

29th July 2019 - Author: Luke Gallin

Following the appointment of Boris Johnson as the new Prime Minister of the UK and subsequent Cabinet reshuffle, the Association of British Insurers (ABI) has underlined the importance of the new Government supporting the UK’s insurance industry and implementing an orderly Brexit.

BrexitHuw Evans, Director General of the ABI stressed that the new Prime Minister has inherited “a huge set of challenges” and called on the new Government to “overcome current impasse and implement Brexit in an orderly fashion, with a transition period in place.”

While the UK has successfully appointed a new PM, the terms of the UK’s departure from the European Union (EU) remains unclear, with a no-deal scenario seemingly still very much on the cards.

The lack of clarity continues to drive widespread uncertainty across numerous industries, including the financial services sector and the insurance industry, which is extremely important to the UK’s economy.

“The crucial longer-term test is whether our future economic relationship with the European Union avoids the UK’s world-leading insurance and long-term savings sector becoming a rule-taker.

“Beyond Brexit, we want to see the incoming Prime Minister and his new Government support our thriving and world-leading industry by improving the competitiveness of our tax and regulatory environment, boosting savings for retirement, keeping the cost of insurance down, improving the safety on our roads, and building a social care system that works for all,” said Evans.

Evans also welcomed the appointment of Sajid Javid as Chancellor and the reappointment of Amber Rudd as Secretary of State at the Department for Work and Pensions, and appointment to the women and equalities brief.

The ABI Director highlighted his work with Javid in the negotiations to establish Flood Re, the UK’s government-backed reinsurance scheme, stating that during his time in Government he has proved to be someone that understands how important the insurance and long-term savings sector is to the UK economy.

“Under his leadership, the Treasury will need to redouble its efforts to implement an orderly Brexit, with a transition plan, that sets the UK up for a prosperous future relationship with both the EU and the rest of the world,” said Evans.

Commenting on the reappointment of Rudd, Evans said: “Our sector has proved itself to be a valuable partner to the Government in recent years, helping to ensure the on-going success of Automatic Enrolment, supporting the implementation of the pension flexibilities and working on practical ways to bring the pension system into the modern era.

“It’s good to know we will be able to continue the relationship we have with Amber Rudd in taking these initiatives forward, and I look forward to updating her on the progress our sector is making around diversity and inclusion.”

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