UK/EU trading relationship must be established as soon as possible: IUA

A new trading relationship between the UK and the EU must be established as soon as possible following the UK’s decision to leave, the International Underwriting Association (IUA) has urged.

The IUA held its annual meeting on June 29, where it debated the impact of the vote to leave.

Dave Matcham, the chief executive of IUA, had said that companies in the London insurance market would not wish to see an unnecessarily prolonged political process and are developing contingency plans in order to reassure customers.

Matcham commented: “It is clear that companies are well prepared to respond to a new business environment and adapt their business plans as necessary.

“The ability to trade freely in European markets via the EU financial services passport is vitally important to our members and preserving this advantage must be a top priority in the exit negotiations.

“Without rights conferred by the passport, firms may have to obtain trading licences in order to continue conducting business in certain countries. This can be a lengthy process and so prudent examination is being applied to all potential scenarios.

“Companies are considering both what they need to do now and how they might respond to the negotiation. It is in the interests of all industry participants that uncertainty and disruption is kept to a minimum by an early confirmation of future trading terms.”

At the meeting, Malcolm Newman, chairman of the IUA, had said: “During my time as chairman, the IUA has spent much of its time working with other industry representatives to build consensus and enable the London Market to speak powerfully with a unified voice. Increased collaboration has allowed us to represent the interests of member companies much more effectively.

“With the result of the referendum on the UK’s membership of the EU, the ability of our industry to act in a united manner, articulate its position and influence international developments will be more important than ever. It is essential that we engage fully to ensure that as many as possible of the trading benefits the London Market currently enjoys are retained.”