1 February 2018Insurance

LIIBA demands contract continuity in Brexit negotiations

One of the most critical issues in  Brexit discussions is contract continuity, Andrew Agnew, chair of London & International Insurance Brokers’ Association (LIIBA) said in a Feb. 1 speech.

In the event that no transition or trading arrangements are in place once the UK leaves the EU, servicing ongoing insurance contracts will fall under the governance of local conduct regulations in the remaining EU countries. In some countries that will mean that it is potentially in breach of regulations to pay a claim.

“There is a very real risk that clients who bought policies in good faith may end up in limbo, uncertain as to whether those policies will be fulfilled,” Agnew said in a speech delivered at the BIPAR (European Federation of Insurance Intermediaries) annual conference in Madrid.

“Insurers transferring liabilities to EU subsidiaries may not be the perfect answer because of the time and complexity involved. We believe this route could still leave clients unsure of their position.

“Surely, we can all agree – UK and EU27 – that clients with existing contracts, wherever they may be, should be paid claims and we should join in lobbying the EU negotiating team and UK government to find a way of doing that, irrespective of the wider picture.

“We also believe it is in clients’ best interests to have the option to access the speciality markets based in London for the risks that are best dealt with there. This means that unimpeded cross-border trading must be maintained. We ask for help from those in Europe that share that same belief to ensure that financial services are not excluded from any future trade agreement.”

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More on this story

2 January 2018   While the UK last-minute deal with the EU in a bid to move Brexit talks on to the next phase, the topic is likely to dominate the year of 2018, according to many of the executives who we interviewed for our year-end questionnaire.
15 February 2018   Insurance intermediaries need to make contingency plans due to Brexit to protect interests of their clients, secure contract continuity and to enable that business continues flowing into London, the London and International Insurance Brokers’ Association (LIIBA) has warned.
23 March 2018   The board of London & International Insurance Brokers’ Association (LIIBA) has appointed Roy White as its new chair after having served three years as vice chairman.