Biba: UK must remain in free market

The British Insurance Brokers’ Association (Biba) has warned the government that the UK could lose its place as the third largest insurance market in the world if it’s unable to secure its place in the free market.

Biba has written to the government urging to fight hard to negotiate a place in the free market when it meets the EU.

In a letter to the government, Biba said, ‘Many of our member firms enjoy the benefits of tariff-free cross-border trade within the European Union (EU) and European Economic Area (EEA).

‘Partly as a result of this freedom, the UK is the third largest insurance market in the world and enjoys a balance of trade surplus in insurance-based products. Much of this will be at risk if the UK were to lose the ability to trade freely with the EU.’

It continued, ‘In a post-Brexit economy, regulation will be an even bigger factor for foreign investors in deciding where to place capital investment and it is vital that our regulatory regime helps the UK actively compete. To continue the free flow of business between the EU and the UK, it is important that our regulatory regimes remain comparable. This must be agreed regardless of Brexit.’

The letter listed 11 key areas of concern. They are: single market and passporting; equivalence regime; the imperative of UK regulatory reform; captive insurance arrangements; maintaining employment opportunities; motor insurance cover; travel insurance; acquisition activity; under-insurance risk for customers; taxation; and opportunities with trade credit insurance.