Regulation is here to stay regardless of the outcome of the EU referendum – that’s the message from a leading insurance industry adviser.
Echoing the views of Lloyd’s chairman John Nelson, who last week castigated ‘irresponsible’ pro-Brexit politicians and warned there would be ‘no regulatory nirvana’ in the event of an ‘out’ vote, Charles Portsmouth of Moore Stephens says freeing UK insurers from EU regulation would be ‘easier said than done’.
Portsmouth, a director at the global top 10 business consultancy firm with more than 30 years’ experience of the insurance industry, added: “In reality, a wholesale rollback of regulatory pressures originating from the EU after a ‘leave’ vote is unlikely. Major European-level initiatives such as Solvency II have already been incorporated into UK law. They are an integral part of the system in this country.
“Moreover, the UK as a whole and the insurance industry in particular are likely to want to retain access to EU market with a new trade deal. The UK insurance sector owes its world-leading status partly to its strength on the European stage and a major part of the UK industry’s revenues comes from Europe. To preserve these lucrative ties and be able to sell cross-border, UK-based insurers are likely to find they still have to comply with EU regulation.
“In short, there are no simple answers to predicting what the world would look like on June 24 if the UK votes to leave the European Union. However, much EU legislation affecting the insurance industry is likely to be here to stay, whatever the referendum outcome.”
, honorary president of Hiscox
Insurance, is one of the few senior industry figures to come down on the side of Brexit – he was one of 300 signatories to a letter published by the Daily Telegraph which said ‘Britain’s competitiveness is being undermined by our membership of a failing EU’ and claimed a vote to leave would stimulate economic growth and job creation in the UK.