Viability of UK captives threatened by Brexit: BIBA
The viability of UK-based captives will be at risk if access to the EU is restricted in a post-Brexit world, the British Insurance Brokers’ Association (BIBA) has warned in a letter to senior government figures.
The representative body has sent a letter to senior government figures, spelling out what, in its members’ opinions, are the most important considerations as the country faces its future outside the European Union (EU). The letter includes a section on threats facing captives.
The letter points out that the impact on captive insurance companies writing for European operations from the UK, or vice-versa for a UK operation from a European base needs to be taken into account.
“Some brokers have created specific captive insurance arrangements for customers in order to place risks they are unable to place competitively in the UK,” it said.
“These arrangements will be put at risk where access to the EU is restricted and we may also see job losses for staff in the business units that focus on helping customers with these arrangements.”