"The UK should be bolder in batting for Britain’s insurance and financial services sector"

It seems like only yesterday the UK government’s Brexit whitepaper drew disappointed head-shaking from the insurance sector… now, as we’re no further forward when it comes to the issue of market access, a new industry report highlights the need to break the current political deadlock in Parliament in order to move forward.      

In its Brexit and the Insurance Sector: Towards 2020 and Beyond report, global law firm Kennedys shines a spotlight on insights from senior insurance executives and policymakers, and has identified what the industry needs to allow it to safeguard investment, talent, and innovation after the UK leaves the European Union. 

To secure the future of the British insurance industry, Kennedys recommends the following:

1. Resolve the uncertainty surrounding the terms of the UK’s exit.
2. The UK should aim for flexibility around the exit date.
3. Define ‘best third country’ status.
4. The UK should not become a rule-taker.
5. Protect workers’ rights.
6. Protect investment in research and development.

“Our report clearly highlights a gulf between the type of Brexit which the insurance industry favours and the UK government’s recent whitepaper,” said Kennedys corporate and public affairs head Deborah Newberry. “Industry leaders do not favour the decision to abandon discussions on mutual recognition for services before the negotiations have even started.

“The UK should be bolder in batting for Britain’s insurance and financial services sector, given the sector’s contribution to the UK economy.”

Newberry called it “imperative” for the government to listen and protect the interests of the UK insurance industry if the latter is to retain its significant market shares.

“The proposed implementation period to December 2020 offers an opportunity for common sense to prevail while the UK and EU forge a new trading relationship,” she explained. “But the publication of the government’s whitepaper, and the political deadlock it has unleashed in the UK Parliament, potentially puts that proposal at risk.

“The UK must start to speak with one voice or risk losing whatever benefits might arise from Brexit.”

In addition, the report cited a consensus among insurance executives that much greater work is required in the development of any future equivalence regime, if that is the market access mechanism to be adopted.