Brexit is finally here – sort of
Officially, the UK will formally leave the European Union tonight at 11:00 p.m. – but less will change than you might expect, at least at first
In practise, as of tonight, the UK will enter an 11-month period of transition, during which it will continue to be bound by the rules of the EU. British passports will change colour – a fairly emotive issue for some, believe it or not – but what else will change?
In terms of travel, not a huge amount, at least at first. Flights, trains and boats will continue to operate as usual, and nothing much will change at passport control, with UK nationals still permitted to queue with other EU arrivals. Additional visas will not yet be required. The European Health Insurance Card will continue to be valid until the transition period is over – although it is highly likely that replacement reciprocal health agreements will not be put in place by the end of the year, so we can expect some upheaval then – as will freedom of movement generally.
Some travel insurers have suggested that the price of travel insurance will rise post-Brexit, an issue that we will of course be keeping an eye on.
Law firm Clyde & Co has offered some commentary on the reinsurance implications of the UK finally leaving the EU, with London-based partner Ivor Edwards saying: “It will be pretty much business as usual during the transition period and attention will focus on the details of the future trade deal that is due to come into force next year. There is limited expectation that passporting rights will be maintained under a freedom of service agreement but hope that market access arrangements based on equivalence will be agreed quickly.
“However, this is not a cause for concern. The London market has been fully preparing for a hard Brexit scenario and the vast majority of UK carriers have set up subsidiaries in the EU location they believe best supports their business and their clients’ interests going forward. These subsidiaries have already begun renewing 2020 business, so the industry is well prepared for the post-Brexit world.
“That is not to say that there won’t be teething problems. Regulators will be on the front foot and it will take time for things to bed down.”
Look out for an in-depth exploration of the impact of Brexit on the travel and travel insurance industries in a future issue of ITIJ.