If you don\u2019t know a \u2018hard\u2019 Brexit (distant relationship with the EU) from your \u2018soft\u2019 Brexit (closer relationships with EU) then Theresa May\u2019s plans for the future of UK may have answered some of your questions.<\/p>\n
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Those at the forefront of UK insurance, never thought it going to be as straightforward as pulling a trigger as there has been much speculation as to how exiting the European Union would play out. Yesterday though, the PM did lay out her plans for the future of the UK, and the response from the Insurance Industry was largely positive.<\/p>\n
Among the PM\u2019s key objectives was the intention to leave the single market of the EU behind and focus energies on a \u201cbold and ambitious Free Trade Arrangement\u201d.<\/p>\n
Steady in his belief that the insurance industry is \u201clarge and robust enough\u201d to cope with the change, Ivor Edwards, corporate insurance partner at law firm Clyde & Co, welcomed May\u2019s intent.<\/p>\n
\u201cHer specific focus on maintaining freedom to provide financial services across borders and talk of a phased approach will be welcomed by insurers and other financial services firms, all of whom crave clarity, stability and a sense that their interests are being represented,\u201d<\/span> he said.<\/p>\n BIBA\u2019s Steve White noted that the contents of May\u2019s speech gave no cause for concern.<\/p>\n “There is nothing that the Prime Minister has said that contradicts our position, that our members have access to a tariff-free barrier-free single market,”<\/span> commented White.<\/p>\n The chairman of BIBA was overall \u201cpleased\u201d<\/span> with what was outlined.<\/p>\n “She has said all the way along that she won’t show her hand, that is understandable,”<\/span> White said.<\/p>\n “What she has shown us has given us quite some encouragement and ticks most of the boxes that we have been asking for.”<\/span><\/p>\n The disclosure from Parliament was accompanied by revelations from Lloyd\u2019s of London, who announced that they were making their own preparations for Brexit, which included a possible move to Europe. It is believed that there are five locations currently under consideration, including Dublin.<\/p>\n While noting that \u201ceconomic confidence across the insurance professions is at its lowest level since 2011,\u201d Keith Richards, managing director of engagement at CII, was encouraged by May\u2019s acknowledgement of economic risk.<\/p>\n \u201cAlthough the Government has not offered the defined transitional period that we were asking for, it has acknowledged the risk of an economic and legal \u2018cliff edge\u2019 and the impact it could have, and proposed a \u2018phased period of implementation\u2019 to give firms that much needed breathing space to consider what the new EU-UK partnership could mean for them,\u201d<\/span> he said.<\/p>\n