An expert industry panel were discussing the impact of Brexit on brokers
Brexit has divided the country since 2016, and the same fault lines were evident during Insurance Times’s BrokerFest debate on the subject this morning.
Tom Barleet, chief executive at broker Erskine Murray is expecting a “significant impact” on clients.
“Every client’s business will change in some form,” he said during the debate held in central London this morning.
”We have to be alive to that change as a broker,” Bartleet added, citing impacts on elements such as supply chains. As a result, the broker is asking clients to think more deeply about potential impacts.
He also highlighted the issue of cost for his clients. ”Someone’s got to pay for our business not being based on freedom of services any more. The impact will be significant,” he said.
Bravo Group director Ian Clark explained the strategy that his business had employed to mitigate the risks of leaving the European Union for its 750 network members.
It set up a ’protective cell captive’ in Malta, which was the best of three possible solutions, the others being using a local third party broker, or buying a European business.
The cell allows you to trade in the European Union with only a minimal number of brokers on the ground, he explained.
The solution worked out well for its members, Clark said.
”We had a problem in Ethos [part of Bravo] where we had books where we could have lost all the revenue.” It was also a marketing tool for other brokers who had a problem with Brexit, allowing Bravo to offer joining the network as a solution.
Be Wiser chief executive Mark Bower-Dyke welcomes Brexit and the opportunities is presents for UK brokers.
”We see Brexit as very positive from the personal lines point of view. Will it affect the customer? I dont think so.
”Our personal lines business in the UK is quite nuclear, mostly within the UK limits. The problem before Brexit was that the market place is out of control, driven by insurers non-domiciled in Gibraltar, Liechtenstein, etc,” Bower-Dyke added.
”I hope we’re going to be strong on what we will ask these [offshore] insurers to do. They should come back to UK and comply with solvency II, they need to close the loophole on VAT etc. not being paid. This will help the UK market get back to where it should be,” he added.
Subscribers read more