We have been a member of the European Union for 43 years and, regardless of the emotional arguments for and against Brexit, there are a number of issues that will effect the General Insurance industry, should the UK decide to leave.
As it stands, UK insurance firms have direct access to a single insurance market spanning 28 countries; that equates to about half a billion people. Should we cut ties with the EU, would UK insurance firms be required to open EU branches in order to gain writes to underwrite business in their respective territories?
Aon recently published a report summarising the implications on the GI industry, post withdrawal from the EEA:
Whilst insurance and reinsurance companies should expect the extent of their exposure to change post Brexit, there is actually a two year exit notice period, so things won’t transform overnight. In fact, it is assumed that actual negotiations could be extremely protracted, with an even longer period for the agreed changes to take effect. However, in the short term, it is widely agreed that there will be economic volatility in the UK markets.