‘Gaping hole’ in Brexit deal for brokers must be resolved: BIBA

The British Insurance Brokers Association (BIBA) has echoed the concerns of other bodies in arguing that the draft Brexit agreement revealed today (November 15) does not offer a solution for UK brokers trading with retail and commercial customers in Europe.

The International Insurance Brokers’ Association (LIIBA) has already raised similar concerns, saying that the lack of clarity around the Insurance Distribution Directive (IDD), which could jeopardise the ability of brokers to operate in Europe.

Steve White the CEO of the BIBA said that the body welcomes the progress which moves towards a transition period but it remains concerned over the lack of a solution for UK brokers trading with retail and commercial customers in Europe.

“Since the UK referendum BIBA has been considering all of the potentially serious implications of Brexit for our member brokers and their customers,” White said. “We have been calling and hoping for mutual recognition, a smooth transition and clarity on many matters that affect our sector.

“We welcome any progress that Government has made in the complex and delicate negotiations for our ordered withdrawal along with the important transition period and we continue to work on how the proposed withdrawal agreement meets the needs of our sector.”

He said that in Theresa May’s Lancaster House speech she called for “a bold and ambitious free trade agreement with the European Union which should allow for the freest possible trade in goods and services”.

“To deliver upon that commitment we urge the Government to continue to negotiate to achieve, as a minimum, something akin to the provisions in MIFID II or even further in order to achieve the broadest possible access,” White said.

“It is important to understand that Brexit negotiations are not over. The draft agreement deals with the withdrawal (i.e. the divorce) and does not set out the future relationship for financial services in any detail. The agreement is still in draft and there is no certainty it will be adopted by Parliament.

“Our biggest concern is that as things stand at the moment the arrangements do not work for insurance brokers. It is vital that this gaping hole is resolved, therefore we are particularly interested in how the agreement in this area could aim to be as closely related as possible to our current market access going forwards.”

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