Insurance and reinsurance businesses across Europe are expected to accelerate their Brexit planning in 2017, as urgency rises within the industry and the need to ensure continuity in operating models becomes paramount.
According to Ivor Edwards of global law firm Clyde & Co in London, the actual timing of the triggering of Article 50 in 2017 will not matter to reinsurance firms, but with the market aware that this is coming plans are already underway to ensure continuity post-Brexit and planning is set to accelerate.
It can take an insurance or reinsurance carrier as long as two years to set up a new operation and so re/insurers have not waited and their planning for Britain’s exit from the EU are well underway.
The planning extends far beyond the UK as well, Edwards explains, “It is worth remembering that it is not only those in the UK that are affected; there are over 550 general insurance companies headquartered in continental Europe who passport into the UK (some of those on a branch basis) that have been considering their options.”
Britain leaving the European Union is going to lead to the need for many complex decisions to be made and plans to be put in place, Edwards explains. For this reason Clyde & Co. forecasts that there will be rapid developments of plans among the insurance and reinsurance industry into 2017, as post-Brexit strategies are put in place, no matter what the outcome of the government negotiations are.