The British Insurance Brokers’ Association (BIBA) has urged the UK government to provide certainty during the transition period of exiting the European Union (EU).
The UK Treasury Committee published a report on transitional arrangements in December 2017, which stated that an agreement between UK and EU was essential.
In the new 10-page report, which is a response to the Treasury Committee report, the UK government stated: “As with any regulatory change businesses are advised to understand how these may affect their business and explore potential impacts. The government will also continue its already-extensive engagement with businesses across the UK.”
Reacting to the government response, BIBA CEO Steve White said there is an absence of clear transition plan.
“We receive £8bn in revenues from the EU and while we are pleased that the government agrees they want a transition period, the lack of both detail and progress in this area concerns us greatly. In the absence of a transition, we’re faced with the prospect of breaking an agreement with the customer or breaking the law by honouring it. This is an unacceptable position to be in.” Steve added.
Steve further added: “It is important that when we transition, we know what we’re transitioning to. Not knowing what the landscape will be like post-March 2019 means businesses cannot plan and some are already planning for the worst.”
Despite uncertainty hovering over the implementation period and transitional arrangement post-Brexit, some progress has been made with regard to the inward-passporting temporary permission regime as specified in the government’s response.
This provision enables insurance companies operating in the European Economic Area (EEA) to continue to pay insurance claims. However, it also requires more details and confirmation whether the provision will continue to be in place for March 2019.
White added: “The 6 million UK policyholders who use an EU passported insurer need the certainty that they will be able to have a claim paid.”