Brixet : British Insurance Companies Are Pushing a Transitional Deal To Keep London as a Global Hub After the Departure of the European Union
British and European insurance companies need transitional arrangements and “access to mutual markets” to maintain London’s status as a global hub, according to Brixet Insurance Lobby on Wednesday.
Malcolm Newman, head of the UK exit team, told Reuters that Britain also needed to negotiate a reinsurance treaty with C, one of the largest markets in the sector, just like the United States and the European Union.
Newman said the bilateral trade agreement between the EU and Switzerland could serve as a model for an insurance contract between Britain and the EU, which includes a dispute settlement mechanism.
About 30 insurance companies, including London’s specialist insurance market Lloyds, have already announced plans for EU companies in the event of a UK exit from the EU, where they are waiting for clarity on the Brixet agreement.
“In a way, it’s poker,” Newman said.
To avoid the slope, the Task Force calls for a transition period after Britain leaves the European Union in March 2019 to fill this gap with new trade rules.
Newman, who is also the executive director of the Europe, Middle East and Africa Reinsurance Center, said an agreement on mutual recognition and access to markets would then allow for different regulatory regimes.
He added that there was a similar call from banks and regulators in the UK, but critics say such an agreement has not been negotiated as such, and may take years. The Libyan Working Group has been formed to work directly with the Ministry of Finance and the Department of Disengagement. Neumann said the EU insurer had “no real voice” in the broader financial sector talks.
However, the largest market for oil and gas group members is the United States.
EU and US regulatory authorities signed a “covered agreement” in September to accept both insurance and reinsurance rules to reduce the cost of transatlantic business. Brixset means that Britain needs to conclude a similar bilateral treaty with the United States: “We need a solution,” Newman said. He added that the LAMG Group had begun discussions with the Ministry of Commerce.
After the vote on Britain’s direct exit from the EU, insurance companies and banks have been forced to continue to pass, allowing financial services companies to sell their products across the EU without the need for local subsidiaries.
They dropped those plans earlier this year because they saw no real real chance of success.
Newman said Brixset’s group of British and European insurance companies, the London market group and the British Insurance Association had held regular meetings with the government over the past six months.