London insurers highlight four main Brexit goals
The London-based International Underwriting Association is keen to avoid Brexit creating barriers that undermine the UK capital's status as the largest global insurance underwriting centre.
The London-based International Underwriting Association is keen to avoid Brexit creating barriers that undermine the UK capital's status as the largest global insurance underwriting centre.
Companies in the London insurance market have identified four detailed priorities from the UK’s forthcoming Brexit negotiations when it relinquishes its membership of the European Union (EU).
The objectives, issued by the International Underwriting Association (IUA), outline arrangements that will help London’s financial district, the City, maintain its position as the largest global centre for commercial and specialty risk. They cover access to the single market, legal considerations, tax issues and uncertainty around the transition process.
The four key areas that members of the IUA’s legal and regulatory committee regard as vital are:
A level playing field
“The London company market’s priorities for Brexit are quite clear,” said Dave Matcham, the IUA’s chief executive officer (CEO). “It is essential to maintain a level playing field so that insurers can operate across the continent without the need for local licences.
“At the same time, the competitiveness of London as a global hub will be preserved by allowing European firms to easily maintain a presence here through branch offices. The UK’s regulatory regime should remain equivalent to the EU Solvency II system and there should also be continued mutual recognition of portfolio transfer and data protection arrangements.
“Brexit negotiations will, of course, take at least two years and it is important to mitigate as much as possible the uncertainty that this process will inevitably engender. In particular, regulatory authorities, both in the UK and continental Europe, should work together to help insurers put smoothly in place whatever contingency plans are required to maintain client services.”
The IUA is working with insurance market body the London Market Group (LMG) to present to the UK government the concerns of its member companies about the Brexit negotiation process.