Speaking at the BIPAR (European Federation of Insurance Intermediaries) annual conference in Madrid today, Andrew Agnew, Chair of London & International Insurance Brokers’ Association (LIIBA) said that to ensure London is where the world wants to do business, continuity is critical to ensuring clients don’t suffer as a result of Brexit.
Agnew said; “there is a very real risk that clients who bought policies in good faith may end up in limbo, uncertain as to whether those policies will be fulfilled. Insurers transferring liabilities to EU subsidiaries may not be the perfect answer because of the time and complexity involved. We believe this route could still leave clients unsure of their position.
Highlighting the importance of contract continuity, he said “we can all agree – UK and EU27 – that clients with existing contracts, wherever they may be, should be paid claims and we should join in lobbying the EU negotiating team and UK government to find a way of doing that, irrespective of the wider picture.”
If the UK leaves the EU without a transition or trading arrangement in place, servicing ongoing insurance contracts will fall under the governance of local conduct regulations in the remaining EU countries, in some countries that could mean that it could be potentially in breach of regulations to pay a claim.
Agnew said LIIBA believes it’s “in clients’ best interests to have the option to access the speciality markets based in London for the risks that are best dealt with there.
“This means that unimpeded cross-border trading must be maintained. We ask for help from those in Europe that share that same belief to ensure that financial services are not excluded from any future trade agreement.”