ABI: Brexit transition deal a relief
Huw Evans, Director General of the Association of British Insurers (ABI), has welcomed the prospect of a transition deal that both the UK Government and European Commission have agreed to in order to ease the transition post-Brexit.
The deal will allow the UK a smooth departure from the European Union, but is conditional on both sides reaching a final agreement. UK negotiators Michael Barnier and David Davies said the deal was a ‘decisive step’ towards a final Brexit agreement.
Evans welcomed the news, saying it was a ‘relief’ that a transitional deal had been agreed: “With annual insurance contracts coming up for renewal it was critical to provide some temporary certainty to insurance customers on issues like driving in the EU and the EHIC.”
The transitional period will last from 29 March 2019 until 31 December 2020 and will guarantee EU citizens arriving between the two dates the same rights and guarantees as those who arrived prior to the Brexit decision. During this period the UK will also still be party to existing EU trade deals, but will be given the freedom to negotiate and sign its own trade deals.
Evan added: “However, we still need to see agreement that EU and UK regulators can fully co-operate during this period so they can begin to solve issues like continuity of insurance contracts."