The UK’s insurance and reinsurance sector still requires greater certainty on how the UK’s trading relationship will pan out post-Brexit, according to Lloyd’s of London Chief Executive Inga Beale.
Speaking after the UK government and the EU announced that they are ready to move onto the next phase of Brexit talks, Beale said that the re/insurance market still requires clarity on how it will need to operate in the future.
“We are pleased that the Brexit talks can now enter the second phase focusing on trade, and that agreement has been reached on the rights of EU citizens in the UK,” Beale said. “However, the insurance sector still urgently needs certainty on the UK’s future trading relationship with the EU.”
“As outlined by the London Market Group (LMG) last week the priority must be to ensure mutual insurance and reinsurance market access once the UK leaves the EU. If the LMG’s proposals are adopted neither the EU nor UK would have to sacrifice market access or control over their respective regulatory regimes,” she continued.
It’s essential for re/insurers to be able to plan to have continuity in their business operations and hence many companies have been setting up new European offices, to enable them to keep trading within the EU without any interruption.
Lloyd’s has itself set up a new European headquarters in Brussels, providing it and its members with guaranteed access to EU trading partners.
But Beale wants to see more certainty in how the UK will trade with EU countries in the future, putting an emphasis on the need for an agreement to be reached that lays out a way forwards through Brexit and beyond.
Beale said, “We therefore remain very keen to see an agreement that puts in place a sensible transition period and a broad and expansive post-Brexit free trade agreement, which includes the financial services sector. In the meantime we continue to move ahead with our plans to establish a Lloyd’s subsidiary in Brussels – which will provide certainty for the market and our clients.”
