UK Edition
British insurers warn messy Brexit could be detrimental to customers
Insurers have urged the UK Government not to "pretend things are simpler than they are" during the Brexit talks, warning that unrealistic deadlines and a chaotic exit could be detrimental to policyholders.
Huw Evans, the head of the Association of British Insurers and a former Downing Street special adviser, said insurers are reliant on "an orderly withdrawal, a stable transition and a sensible and mutually beneficial future trading relationship" to run smoothly.
He added that it would not be acceptable to leave the European Union with no deal "if insurers are to continue to meet the needs of millions of customers and remain legally compliant".
The country's insurers have been among the quickest to react to the Brexit vote, with The Telegraph reporting earlier this month that insurance giant RSA would open a subsidiary in Luxembourg, following moves by rival insurers AIG, FM Global and Hiscox to do the same.
Like much of the financial services industry, insurers are responding to fears that they could lose the ability to service clients in the EU once the UK leaves the bloc.
However Mr Evans' comments flag fears that cannot be solved by simply setting up an EU subsidiary, suggesting the industry is now equally concerned the process will be badly handled and will not result in a deal between the UK and the EU.
He called for formal cooperation between the main political parties in Westminster and the houses of Parliament to "make the legislative process work".
With Britons taking 32m vacations to the EU a year, the trade body wants clarity over the European Health Insurance Card, which is free for any EU citizen and reduces the costs of travel insurance by allowing people to receive state funded health treatment.