Brexit promises to continue to disrupt the business environment as the New Year unfolds. While a deal in November on the completion of the first phase in Brexit negotiations represented an important domestic political victory, since then, the ongoing ambiguity over the future UK/EU relationship means that insurers across the sector have been forced to plan for the ‘worst case’.
In a political context, uncertainty remains the central theme for the insurance sector. With little meaningful clarity on the likely tenets of a Brexit transitional arrangement, many insurers are executing contingency plans to mitigate the risks of unenforceable contracts following the UK’s exit from the EU.
To this end, finding a solution to contract continuity is likely to remain a focus between City regulators and their political masters.