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Urgent agreement needed on regulatory deal to address Brexit contracts issue

Commenting on the publication today of the Financial Services technical notice relating to a no-deal Brexit, Hugh Savill, Director of Regulation at the Association of British Insurers, said:

“Leaving the EU without a deal would cause major inconvenience to millions of pensioners, travellers and drivers. We urge the Government to agree a deal as a matter of urgency.

“Today’s paper emphasises the risk of insurers not being able to make payments to customers based in the EU after the end of March next year. Obviously insurers want to meet their commitments to their customers, but this problem has the potential to affect millions of insurance customers, including UK pensioners overseas. It can be fixed by co-operation between the UK and EU regulators – if the EU authorities wish to do so. Insurers have of course been making contingency plans for their own operations for many months now, but this contract issue is not one that insurers themselves can fix.”

Last updated 23/08/2018