The British Insurance Brokers’ Association (BIBA) has called for the UK government to negotiate for continued and uninterrupted access to the European single market access after Brexit.
BIBA’s Chief Executive Steve White explained that more than 2,700 UK insurance intermediaries benefit from passports that enable them to access EU states and that £7.8 billion of European insurance and reinsurance revenues are underwritten or managed in London.
Steve White said; “The UK holds the number one position in the European insurance market as brokers are able to utilise the passporting system to access the single market. However this position and this business model is under serious threat if we do not have barrier free, tariff-free access to the single market including passporting capacity and regulatory equivalence.”
BIBA’s preference is for the UK Government to consider a sectoral solution to Brexit, if a whole economy access to the single market isn’t achievable. That would mean a specific deal for the UK insurance and reinsurance industry, to ensure uninterrupted access to European markets is maintained.
BIBA’s is calling for the UK Government to negotiate for a minimum five year transitional period, to give the industry time to adapt and a new economy-wide or sectoral agreement to be arranged.
BIBA also said that a solution for European workers in the UK’s insurance and reinsurance industry is required, as well as a solution for UK insurance professionals working around Europe.
BIBA’s Chairman, Lord Hunt of Wirral, explained; “BIBA has identified that more than 2,400 highly skilled and highly valued EU citizens work in the London insurance market and a variety of business models depend on this. BIBA has called for a positive solution for the European workforce.”
BIBA said it has written directly to the UK Prime Minister Theresa May, spelling out the issues it would like to see included in Brexit negotiations.
Showing that the UK Government is cognizant of the issue faced by insurance and reinsurance players in the wake of the Brexit vote, Jane Ellison, Financial Secretary to the Treasury, said; “The UK is a global leader in insurance and the industry provides a vital service to businesses and consumers at home, across the EU and further afield.”
Graeme Trudgill, BIBA’s Executive Director, highlighted the “numerous challenges” facing the sector, including the threat posed by Brexit and losing European passporting rights.
“5,727 EU-headquartered insurance intermediaries possess passports to trade in the UK – many of them accessing Lloyd’s and the London insurance market. This demonstrates the benefits to EU members of continuing barrier free, tariff-free access to the UK and is a relevant factor in the ongoing negotiations,” Trudgill commented.
