“Looks to be dead in the water” was how LIIBA chief executive Christopher Croft (pictured) described the concept of mutual market access as the UK inches its way toward the European Union’s exit door.
In its mid-year report published today, the London & International Insurance Brokers' Association (LIIBA) provided an update on progress in areas including the wholesale insurance broker market study being carried out by the Financial Conduct Authority; diversity and inclusion; as well as regulatory issues such as the General Data Protection Regulation (GDPR), Insurance Distribution Directive (IDD), and Senior Managers & Certification Regime (SMCR).
Naturally, highest on the agenda is Brexit.
“Whatever the outcome of the machinations of the debate over the whitepaper, one thing is clear,” read LIIBA’s report. “The possibility of the UK leaving the EU with no trade nor transition agreement in place in March 2019 is higher than it was previously. Members should therefore plan for how they would continue to service EU clients’ needs in that eventuality.”
Exploring the options for member brokers who would have to create subsidiary entities, the trade body cited meetings with officials in Belgium and Greece.
“We have been liaising closely with the Belgian government and regulators to assist any member who might consider Brussels as a location for such a subsidiary,” noted Croft. “These discussions have been very positive.
“We’ve also had an introductory meeting with officials from the Greek Embassy. This was also positive, and LIIBA will be pursuing a more in-depth exploration of whether Athens or Piraeus could prove a viable alternative location.”
As far as Prime Minister Theresa May’s government is concerned, as set out in the whitepaper, Brexit means leaving the Single Market and ceasing to operate under the passporting regime of the EU.
“At this advanced stage of the game, it would be foolish to ignore the very real possibility of no-deal for the UK,” stated Croft, who has expressed LIIBA’s disappointment over the market access debacle. “That’s why we’re encouraging our members to address this scenario now.”
