After the UK voted to leave the EU, with 52 percent of voters deciding to exit the union, Aon released a statement suggesting that it will likely be some time before there is a clear picture of the implications on the insurance industry.
Prior to the EU Referendum, Charles Winter, COO and head of risk finance at Aon Global Risk Consulting, discussed what a Brexit would mean for captive owners based in the UK.
He said: “There are few captives in the UK itself, so the effects are most likely to be felt by UK owners of captives based in Gibraltar or the EU states that have developed captive insurance sectors, such as Ireland and Malta. Captive reinsurance is less likely to be affected.”
Meanwhile, Andrew Holderness, global head of corporate insurance group at Clyde & Co, has suggested that insurers, reinsurers and intermediaries urgently need to review the scale of their operations from continental Europe into the UK, or vice versa, and determine what impact losing it might have on their overall balance sheet.
Holderness stated: “If it’s critical, or if they want to continue writing it, they have a number of options; acquiring another business to provide the right platform, establishing a branch or subsidiary – or finding another business to front for them. If operations are marginal, there may well be value to be had from the sale of the renewal rights or a portfolio transfer.”
In a statement, Insurance Europe president Sergio Balbinot said: “We are deeply saddened to hear that the people of the UK have voted to leave the EU. We now hope that policymakers can work quickly to limit the impact that this time of uncertainty will have on both consumers and businesses.”
The decision of a Brexit has seen David Cameron resign as prime minister, however in a statement he said: “We should be proud of the fact that in these islands we trust the people with these big decisions.”
The UK is yet to activate Article 50 of the Lisbon Treaty, which will begin the two-year process of withdrawal from the EU.
