Brexit impact on Insurance industry


#1

Bank of England tests have flagged up some serious Brexit concerns.

Six million UK customers buy insurance policies from EU companies and, after Brexit, those firms would not have permission to collect premiums or pay claims.

The same is true of the financial insurance that banks buy and sell to each other. Here the numbers are staggering - the notional value of those contracts are £26 trillion. Without legislation from both the EU and the UK they may be hard to enforce and that would create financial instability.


#2

I would think that just as big British banks are having to setup operations in Europe to continue operating there, these big EU companies are going to have to setup operations here in a similar fashion?


#3

Most already have operations here but under a passport arrangement using their foreign license. Guess they will have to obtain a license here or shut up shop.


#4

Ah I see, I guess much like the Banks going in the other way, they have to decide whether it’s worth the hassle or not!

Definitely an interesting subject!