Regulator delivers warning to insurers: prepare for a “very hard” Brexit

It seems that some insurance companies are taking the matter “too lightly”

Regulator delivers warning to insurers: prepare for a “very hard” Brexit

Insurance News

By Terry Gangcuangco

The financial regulatory authority of Germany has warned of a “very hard” Brexit, with BaFin head of insurance oversight Frank Grund saying most insurers don’t seem to be taking the matter seriously.
“I have the impression in various talks that the topic is taken too lightly,” Grund was quoted by Reuters as addressing German insurance companies during a conference yesterday. He also echoed similar sentiments about the risk of operating illegally in the absence of new agreements. 

Grund added: “One shouldn’t wait for the final three months.”

Beyond the realm of insurance, another German body has also asked firms to be ready for a very hard Brexit. In a statement posted by the Federation of German Industries (BDI) on its website, it said German companies operating in Britain or Northern Ireland need to make provisions.

“German firms must prepare for the worst-case scenario of a very hard exit, anything else would be naïve,” warned BDI director general Joachim Lang. “To make it clear: Yes, German industry wants to keep a very close relationship with Britain. But have no doubt: We prioritise the further development of the EU.”

The organisation has set up a taskforce aimed at identifying potential and acute risks associated with the UK’s departure from the European Union, to come up with constructive solution proposals. “As business leaders we are, of course, preparing for all possible scenarios,” added Lang.
He stressed: “There is no guarantee that even a single transitional regulation will be in place on the date of withdrawal, let alone a final, equitable pact regulating future relations between the EU and the UK.”

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