London insurance market warned 'turbo charge contingency plans' after Brexit delay vote
Last night the UK Parliament voted in favour of requesting an extension to Article 50 and consequently a delay to Brexit beyond the 29 March deadline.
MPs voted by a majority of 210 to extend the negotiation period following a vote earlier in the week to reject a no-deal Brexit. The UK will potentially request an extension of three months, although any confirmation will be at the EU’s discretion.
While neither vote means these outcomes are set in stone, some in the insurance industry will welcome the decisions.
Jennette Newman, partner at Clyde & Co and president of London FOIL, said: “An extension to Article 50 would provide some breathing space to London market firms, but it does not provide much needed clarity over the future trading relationship between the UK and the EU and doesn’t prevent no deal.
"London market firms should begin to turbo charge their contingency plans for all possible outcomes, while we to see how negotiations pan out with the EU."
Huw Evans, director general of the Association of British Insurers, said: “[Parliament’s vote to extend Article 50 till 30 June] is really the only choice available given the amount of time left and the economic damage a no-deal Brexit would cause. But we should be under no illusions about the continued uncertainty an extension creates.
“Should the EU agree to it, this extra time must not be wasted. There would be no second chances in June.”
Prime Minister Theresa May is expected to bring her Brexit deal back to Parliament on Tuesday for a third time after an earlier vote the same day allowed her to retain control of the Brexit process.
Given the transient nature of the situation other insurance sector sources agreed that it was too early to tell the outcome.
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