The UK and Switzerland have agreed to allow insurers and reinsurers to trade freely between the two countries once the UK completes its exit from the European Union (EU).
UK Finance Minister Phillip Hammond and Ueli Maurer, President of the Swiss Confederation and Head of the Federal Department of Finance, signed a deal committing to post-Brexit insurance terms at the World Economic Forum in Davos today.
The deal will replicate the terms of the EU’s insurance agreement with Switzerland and will take effect once the current EU-Swiss direct insurance agreement ceases to apply to the UK.
The arrangement is similar to the deal struck between the UK and the U.S last December, which sought to replicate the ‘covered agreement’ on insurance between the U.S and the EU.
It is also the first in a series of planned meetings by UK officials that aim to secure closer financial relationships with various global markets ahead of March 2019.
“The UK insurance industry contributes approximately £35bn to our economy and employs over 324,000 people,” Hammond said following the announcement.
“Links to financial industries like the Swiss insurance market are important for global financial systems and it’s vital that trade continues between our two countries so firms have the certainty they need to continue to do business and invest in the UK’s bright future,” he continued.
By confirming regulatory alignment, the agreement allows re/insurers in the UK and Switzerland to open branches in either jurisdiction with greater ease.
Switzerland is currently one of the largest investors in UK finance, contributing more than £11 billion in 2016, second only to the U.S.
