After 43 years of membership, the United Kingdom (UK) voted to leave the European Union (EU) in an unprecedented move.
While the full effects of the so-called Brexit will only be known in the coming months and years as the UK negotiates its exit under the Article 50 of the Treaty on European Union, understanding the next steps and potential implications for insurance buyers and insurance carriers is paramount.
Potential alternatives to EU membership, freedom of movement, the right of insurers and brokers to passport, and changes in the legal and regulatory environments will be defined in the in line with exit negotiations.
This Adviser outlines some key insurance implications that companies should be considering in their contingency plans, including:
- effects on risk professionals and insurers
- possible scenarios for EU membership alternatives
- people and passporting issues
- market volatility
- potential impact on legal and regulatory environment
The outcome of the referendum means a change in the relationship between the UK and the EU, but the specifics are far from certain at this point. Marsh will be working to further understand what Brexit will mean for clients and will be issuing further guidance as the impact becomes clearer.