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Impact of Brexit on policyholders buying Insurance

There is going to be some impact on the insurance market as a result of Brexit that will lead to increased costs for insurers and which, in turn, are likely to be passed on to the policyholder through their insurance and premiums.  The longer term consequences of an exit from the EU for the insurance world may include:There is going to be some impact on the insurance market as a result of Brexit that will lead to increased costs for insurers and which, in turn, are likely to be passed on to the policyholder through their insurance and premiums.  The longer term consequences of an exit from the EU for the insurance world may include:

 

  • future legal and regulatory changes affecting the risks underwritten and/or the conduct of insurance business; and
  • decisions about whether existing business and corporate structures need to be adapted in order to maintain access to relevant markets.

If the right to passport into EU countries is withdrawn, UK insurers may need to consider restructuring their business to facilitate access to EU markets, although the insurance sector as a whole is probably less reliant on EU pass-porting than other financial services. It remains to be seen to what extent this will impact policyholders other than in the form of increased premium.

Claims settlement could ultimately be impacted, although recent legislative changes mean that insurers of English law policies may soon be under an obligation to settle claims within a reasonable time, failing which damages may be payable for any losses suffered as a result.

UK insurers will have to abide by their existing obligations under English law, including those derived from EU legislation, until such time as any changes are made. The position is the same for policyholders with insurance policies governed by English law.

Please contact Jack to discuss any concerns on 966 493 082 or email info@goldenleavesinternational.com

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