The British Insurance Broker’s Association (BIBA) has sent a letter to government officials stating the 11 things it believes are the biggest issues for its members post-Brexit, with passporting topping the list.
BIBA’s letter says the loss of passporting rights would cause an administrative nightmare given how many of its members use it to do business in Europe. BIBA also stated that it would be preferable if the UK was able to remain a member of the single market, as opposed to simply retaining access.
An example given is how brokers are able to insure UK military personnel stationed in EU territories using passporting. If passporting was taken away, the process becoming much more difficult. If single market access can’t be maintained, BIBA said equivalent regulations would be a necessity to prevent conflicting standards.
BIBA also called attention to the UK’s lack of a body that works to promote the local industry as well as regulate it. While the Financial Conduct Authority (FCA) and Prudential
Regulation Authority are responsible for regulating the industry, they are not responsible for making sure the UK remains internationally competitive.
“It is imperative that the Government continues with plans to list the FCA as one of those bodies subject to the Business Impact Target under the Enterprise Act,” the letter reads. “In addition we would ask that the FCA is given a balancing statutory objective to consider the international competitiveness of the UK financial markets and create a dedicated inward investment unit in the FCA to support and encourage new entrants to the UK.”
The letter also states that brokers are concerned about retaining their EU staff living in the UK and keeping options open for acquiring EU businesses. Another issue listed is motor insurance, with BIBA concerned motorists travelling between Northern Ireland and the UK might face conflicting standards and additional cover requirements that aren’t already in place.
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