Government sets out approach on motor insurance for drivers post Brexit

17th May 2018

In its 2018 Manifesto, the British Insurance Brokers’ Association (BIBA) called for a practical approach to enable more than 2.5 million private and commercial motorists to continue to travel easily throughout the EU.

In a letter to BIBA this week the Department for Transport (DfT) set out its intended approach to motor insurance post-Brexit.  It confirmed the intention to remain part of the Green Card-free circulation area and to ensure the UK meets the requirements for third party motor insurance.

The Council of Bureaux (CoB) has indicated that the UK’s Motor Insurers’ Bureau (MIB) can remain part of the guarantee agreement, under the Motor Insurance Directive, as a signatory, in relation to minimum third party insurance provision. This means that participating countries, once an implementing date is set by the EU Commission, will refrain from carrying out checks on motor insurance for vehicles entering their country.

Graeme Trudgill, BIBA Executive Director said: “This is excellent news for commercial and personal motorists as well as brokers and insurers and follows collaborative representation by BIBA, the MIB and the Association of British Insurers. Without such an agreement drivers would be faced with increased bureaucracy and delays at borders and insurance brokers would need to have in place mechanisms to physically issue 2.5 million Green Cards every year. This is exactly the solution we wanted.”

The proposal requires the agreement of the EU Commission but this is expected to be purely procedural and the agreement will be put in place.

Trudgill concluded: “It was also pleasing that DfT acknowledged the support that BIBA provided on behalf of our members in developing the approach and they have confirmed they will keep us informed as matters progress.”

-ENDS-

Notes to editors

  1. For further information please contact:

BIBA press office:
Pam Quinn, Head of Communications
020 7397 0223
quinnp@biba.org.uk

Leighann Forsyth, Deputy Head of Communications
020 7397 0224
forsythl@biba.org.uk

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  1. About the British Insurance Brokers’ Association

The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance intermediary organisation representing the interests of insurance brokers, intermediaries and their customers.

BIBA membership includes just under 2,000 regulated firms, employing more than 100,000 staff.  General insurance brokers contribute 1% of GDP to the UK economy; they arrange 72% of all general insurance with a premium totaling £62.7bn and 93% of all commercial insurance business. Insurance brokers put their customers’ interests first, providing advice, access to suitable insurance protection and risk management.

BIBA helps more than 550,000 people a year to access insurance protection through its Find a Broker service, both online and via the telephone.

BIBA is the voice of the sector advising members, the regulators, consumer bodies and other stakeholders on key insurance issues.

Insurance brokers put the client’s interests first, providing advice, access to suitable insurance protection and risk management.

BIBA helps more than 250,000 people a year to access insurance protection through its Find a Broker service, both online and via the telephone.

BIBA is the voice of the sector advising members, the regulators, consumer bodies and other stakeholders on key insurance issues.