In the lead-up to the EU referendum the insurance industry made no secret of its allegiance to the ‘remain’ campaign with industry bodies such as the Association of British Insurers and the British Insurance Brokers Association both publically backing Cameron and co. Turn the clock forward to a post-Brexit world and it’s easy to see why their voices were so loud – with shares in major insurers like QBE and Aviva
among those to be reportedly tumbling.
However, just what impact can we expect the Brexit vote to have on the policies that brokers are trying to sell?
Since the referendum, we have already seen fuel prices rising and the pound getting weaker.
“Fuel prices will be the biggest immediate concern of drivers with the weaker pound and the Chancellor's prediction that leaving the EU would lead to fuel duty increases,” commented Edmund King OBE, president of the AA. “We will oppose duty increases and continue to monitor the situation on behalf of our members.”
Now there are plenty of obvious concerns surrounding car insurance. The AA has raised some potential questions that may need to be answered after the Brexit vote:
- Driving abroad:
According to existing legislation anyone who has a car they can insure can legally drive across any EU country with just third party car insurance in place. There is the potential that this could be withdrawn overtime. In addition, several insurers offer comprehensive cover while driving abroad at no extra cost – something that may also be readdressed over time.
- Gender pricing:
As of December 2012 it became illegal for insurers anywhere in the EU to take into account gender as a risk factor despite the fact that statistics show that men are typically involved in more accidents resulting in fatalities and serious injuries than their female counterparts. With an exit from the EU, there is the possibility that gender directives may be reintroduced although the AA has described this as “unlikely”.
- Travel insurance:
Currently, the European Health Insurance Card will continue to apply. However, it is likely that there will be an increase in bureaucracy between the UK and EU countries potentially making travel more difficult and leading to stricter limits on duty free goods.
For brokers there will be plenty of developments to watch – and policies may just become a harder sell to consumers without some of the privileges they were accustomed to.
Host of UK-listed insurers take Brexit hit
Brexit impact strikes as QBE rocked by shares slump