The EU Exit raises a number of issues that could seriously impact insurance brokers and their customers. BIBA is highlighting eight areas that will enable us to effectively service both new and existing UK and EU clients.
BIBA-KPMG Brexit Navigator
In 2017 when we asked members if they had any concerns regarding Brexit, around 66% of respondents said that they did. As a result, the BIBA Brexit Committee has been working closely with leading consultants, KPMG to offer assistance to BIBA members who are considering the implications of Brexit on their business. Consequently, we have created the BIBA-KPMG Insurance Broker Brexit Navigator. This includes considerations around deciding whether you need to set up EU branches or make arrangements with a local European wholesaler or distribution network to deal with existing European clients.
It also flags potential considerations and shows timescales that may affect these.
As we approach March 2019 we hope that this navigator will help you focus on the Brexit issues and opportunities that most directly affect your business.
BIBA has reached an agreement with the Worldwide Broker Network (WBN) which will facilitate the introduction of BIBA member firms to one of their member firms in an EU state in order to enable you to continue to help your EU based clients.
WBN has a member operating in each EU country, and all of their members have undergone a rigorous vetting process and importantly have international employees who are English speaking.
A BIBA member that needs assistance with an EU client will be introduced by WBN to an appropriate member. Once the introduction is made, neither WBN or BIBA will have any further involvement meaning that you have control of the relationship and terms of business with the EU broker. You will also be able to agree on the scope of services (e.g. placement, renewals, claims management) and compensation directly.
This agreement will provide some certainty and continuity to BIBA members and their EU clients while we await further development regarding any trade agreement providing access to the single market.
As the mechanics are finalised we will share these with you so that you can benefit from this important arrangement.
BIBA’s Graeme Trudgill interviews Alec Finch at BIBA 2018 on the member solution on Brexit
Representing our members in Europe
With much of the Financial Conduct Authority’s rule book derived from European secondary legislation, BIBA is a member of the European Federation of Insurance Intermediaries (BIPAR), and is active in representing members’ interests with the three European legislative bodies that create the regulations; the European Commission, the Council of Ministers and the UK representatives in the European Parliament.
BIBA and Bernadino
BIBA, Alessandro de Besi, Diana Ispodkina and Anna Kadar
BIBA meets David Liddington MP Minister for Europe
David Sparkes at BIPAR
Graeme Trudgill, BIPAR committee meeting February 2015
BIBA, Lord Hill and Alessandro de Besi
Kay Swinburne MEP
Steve White and André Lamotte – the BIPAR President
BIBA and Anna Kadar
Steve White at BIPAR
BIBA response to the EC's motor insurance Directive refit evaluation
The EC announced its proposals on changes to the Motor Insurance Directive in light of a number of court rulings that have affected its application and has identified five areas for clarification. BIBA’s views on the proposals are set out below.
– For a new free-trade agreement that allows UK and EU insurance brokers and insurers to continue to trade without any new legal barriers or frictional costs that would render either side unable to competitively or legally fulfil its commitments to UK and EU clients.
– For recognition of prudential regimes that confirm regulatory alignment between the UK and the EU.
– For Gibraltarian capacity to be confirmed legal in the UK before exiting the EU.
– For the UK and EU to agree a suitable transition period until a new free-trade agreement is agreed.
– For the EU Parliament and UK Government to agree that any insurance policy that straddles the exit date will remain fully legal until its end date to reassure clients and provide contract certainty.
Motor Insurance – EU Exit
– To maintain a free circulation zone and avoid the reintroduction of onerous green card requirements by maintaining regulatory alignment with the EU Motor Insurance Directive, or in the event of the UK moving away from EU law, becoming a third country under articles 7 and 8 of the Motor Insurance Directive.
– For all parties to work on a practical solution that minimises the impact of the re-establishment of EU/UK border controls on motorists and businesses from both sides.
– For a bilateral driving licence agreement to ensure a seamless transition after EU exit.
Travel Insurance – EU Exit
– To maintain an equivalent reciprocal health agreement system on emergency healthcare between the UK and the EEA.
BIBA has created a Brexit Committee to consider the issues affecting brokers as a result of the coming EU exit.
BIBA welcomes improved level playing field for customers with conclusion of Insurance Distribution Directive (IDD) political process
After many years of promoting the interests of members and their customers in Brussels, Westminster and working closely with our European Federation BIPAR, BIBA is delighted to see the Insurance Mediation Directive will now become the IDD and include comparison sites and direct insurers.
BIBA is an active member of the European Federation of Insurance Intermediaries (BIPAR), carrying our 'one voice' philosophy to the European stage, where interests of brokers across the region are aligned.
The liaison with fellow trade associations across Europe permits a sharing of experiences which helps us develop stronger arguments on issues affecting our local markets.