The impact on captive insurance companies writing for European operations from the UK, or vice-versa, needs to be considered during Brexit negotiations, according to a letter sent to senior government figures from the British Insurance Brokers’ Association (BIBA).
The letter set out what, in BIBA’s members’ opinions, are the “most important considerations” as the country begins exiting the EU.
It explained that some brokers have created specific captive insurance arrangements for customers in order to place risks they are unable to place competitively in the UK.
It stated: “These arrangements will be put at risk where access to the EU is restricted and we may also see job losses for staff in the business units that focus on helping customers with these arrangements.”
The letter also noted that to continue the smooth running of business between the EU and UK, “it is important that our regulatory regimes remain comparable".
