Trade body to brokers: Keep the London market appraised of your plans

Chief executive shines spotlight on key Brexit challenge
Trade body to brokers: Keep the London market appraised of your plans
INSURANCE NEWS
By Terry Gangcuangco
02 Nov 2018

London & International Insurance Brokers’ Association (LIIBA) chief executive Christopher Croft (pictured) has called on the broking community to do two things, in order to put the Insurance Distribution Directive (IDD) issue before the European Commission.

“Most regulators are expecting EIOPA to provide clarity for brokers but our understanding is that EIOPA does not intend to do so,” Croft told insurance brokers at yesterday’s joint LIIBA-Lloyd’s Brexit seminar in London. “This is because the scope of IDD is a matter for the European Commission. However, the Commission is unlikely to do anything that could be seen to be prejudicing the negotiations.”

He said brokers need to keep the London market and its representative bodies appraised of their plans, as well as continue to work closely with the Corporation of Lloyd’s. Noting that, to date, no European Union regulator had confirmed a belief that a wholesale broking model would be acceptable, the CEO shone a spotlight on the key challenge facing brokers post-Brexit. 

In Croft’s view, what remains as the biggest concern is the uncertainty surrounding the proposed models for brokers to maintain access to London for European risks. In addition, he believes the message to politicians is still twofold.

“We need a political solution to contract certainty and we need EU clients to retain access to London post-Brexit,” stated Croft. “It’s a message we believe is now resonating in some important areas.”

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