Preparing for smooth sailing – whatever Brexit outcome is reached
As the UK Government sets out its desired future relationship with the EU and the negotiations move into their final phase in the coming months, it will come as no surprise that Brexit is a subject featuring more and more in our conversations with customers and distributors alike. Understandably, they want to know what the post-Brexit world will mean for their ongoing relationship with us as their insurer as well as any real impact Brexit will have on the effectiveness of their policies. In terms of their policies, put simply, simplicity and contract certainty are our aims.
Indeed, throughout the Brexit process and as the topic continues to dominate the political and media landscape, Zurich has worked closely with the UK, European and Swiss regulators and policymakers. And while it is very difficult to predict what will happen as the UK moves towards a final deal, it is imperative that companies like Zurich, that do business in or into/out of the UK, take the issue seriously.
Zurich’s approach to Brexit is to ensure that we best represent the interests of Zurich and the wider insurance industry, while providing reassurance and guidance to our customers. Through close working relationships with our industry bodies, targeted lobbying and political stakeholder engagement, cooperative engagement with the UK and other regulators, and strategic conversations with our global broker network, we are working to ensure that our business and our customers are prepared for any and all eventualities.
The structure is important
The UK Government’s decision to allow European insurers to operate in the UK as normal post-Brexit under a temporary permissions regime, is a sincerely welcome and pragmatic step in the right direction. These regulatory permissions will enable us to seamlessly write business, ensuring very necessary contract certainty for all our customers. This will also go a long way to help preserve stability for the UK and European insurance industry.
Be adaptable
Of course, flexibility will be needed and as the UK Government works out its future relationship with the EU, further changes in our longer-term approach may be required. This is something we continue to work on and discuss with our regulators. Despite the ambiguity of the EU/UK negotiations, it is welcome that the UK Government and regulators have provided clarity and reassurance on the inbound branch. This means we can provide continuity of service to our customers and be confident of minimal disruption as Brexit proceeds.
As the debate rolls on, clearly Zurich and indeed the insurance industry cannot wait until all the details of the final Brexit deal are finalised – that will simply not leave anyone with enough time. Instead, and because Zurich remains committed to the important UK market, we are ensuring we are ready for whatever happens before, during and after the separation process.
Contributed by Zurich Insurance Company
