LLIBA and EY advise brokers on Brexit
A new report, published by the London and International Insurance Brokers’ Association (LIIBA) and accounting firm EY, aims to tackle the uncertainty about the ability of intermediaries to place and service European risk from the UK post-Brexit.
Christopher Croft, CEO of LIIBA, said that the report hopes to help brokers who are facing major challenges from the Brexit outcome. “We are working closely with our members to help them make the right contingency plan to protect the interests of their clients. That may require them to create a subsidiary entity in EU,” he added. Croft asserted that the report will help brokers to choose the most appropriate location to create a subsidiary entity.
“We all know that there needs to be a solution found for contract continuity – so that clients with policies in play as UK leaves EU are not disadvantaged. We support the call from the CEO of the FCA for a single, official solution to this rather than leaving firms to fend for themselves. But we also need to ensure that the flow of business into London can continue whatever the outcome of the negotiations. This report will support our members plans to achieve that.”
“Brokers have a fundamental role to play to maintain client service and insurance trade flows between the EU27 and the UK post-Brexit,” Benedict Reid, UK Insurance Brexit Leader for EY, added. Brexit plans should be connected all across the value chain, he continued, otherwise brokers maybe left in a position where they cannot be placed with newly-authorised underwriting entities
“If brokers do not move with pace, they risk not being ready to trade with underwriters’ new entities, which could result in disruption to their clients, their trading partners and their own businesses,” he concluded.