The ABI has warned that the extra time should not be wasted
The insurance industry has welcomed the extension of Article 50 until June 30 but argued that further clarity is needed.
It follows MPs voting to delay Brexit beyond the scheduled date of March 29 yesterday in Parliament.
But it remains uncertain that the EU will allow the extension of Article 50.
Jennette Newman, partner at Clyde and Co and president at London FOIL, said: “An extension to Article 50 would provide some breathing space to London market firms, but it does not provide much needed clarity over the future trading relationship between the UK and the EU and doesn’t prevent no deal.
“London market firms should begin to turbo charge their contingency plans for all possible outcomes, whilst we to see how negotiations pan out with the EU.”
While Huw Evans, director general of the Association of British Insurers, said: “This is really the only choice available given the amount of time left and the economic damage a no-deal Brexit would cause, but we should be under no illusions about the continued uncertainty an extension creates.”
But Evans was adamant that should the EU agree to it, the extra time should not be wasted as “there would be no second chances in June.”
A spokesperson for Biba added: “While there is no guarantee that the EU will allow an extension of Article 50, BIBA’s position remains unchanged – we want an orderly exit with a transitional period, allowing time for a future deal that involves greater access to be agreed.”
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