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A majority of Intelligent Insurer readers participating in a survey do not think that, in the Brexit negotiations, the UK’s new Prime Minister Theresa May will be able to secure the same level of access to the European market that UK re/insurers currently enjoy.
From 150 participants of the survey, 65 percent do not believe UK re/insurers will, after the Brexit, retain the same access to the EU market they currently have.
Many believe that the UK will not accept the free movement of people the EU requires for granting free access to the common market. As a result, the UK will have to make concessions on the level of market access for UK re/insurers.
Key around the Brexit negotiations will be the passporting rights for UK re/insurers. The mechanism provides a company authorised in one EU member state the ability to conduct cross-border business without being required to apply for any additional authorisation or hold assets locally. Similarly, foreign re/insurers are at risk of losing access to the EU market if their third-country passporting rights through the UK are to be cut.
Brexit, EU Referendum, Theresa May