Brexit: Implications for insurers and reinsurers

Brexit protesters wave flags made up of the European Union flags and British Union flags outside the Houses of Parliament in London, U.K., on Tuesday, Jan. 16, 2018. (Photo: Chris Ratcliffe/Bloomberg)

Little, if anything, will change for the insurance industry as a result of Brexit on January 31, 2020. It will be pretty much business as usual during the transition period, and attention will focus on the details of the future trade deal that is due to come into force next year. There is a limited expectation that passporting rights will be maintained under a freedom of service agreement but hope that market access arrangements based on equivalence will be agreed quickly.

However, this is not a cause for concern. The London market has been fully preparing for a hard Brexit scenario, and the vast majority of U.K. carriers have set up subsidiaries in the E.U. location they believe best supports their business and their clients’ interests going forward. These subsidiaries have already begun renewing 2020 business, so the industry is well prepared for the post-Brexit world.