The European Union referendum in the United Kingdom on June 23, 2016, created a considerable amount of uncertainty about the future of the UK. The insurance industry is not immune to this uncertainty, and it is currently unclear how the referendum result will affect insurers.
Great Britain has not yet given notice under Article 50 of the Lisbon Treaty to leave the EU and, when it does—which, according to press coverage, may be at the end of the first quarter of 2017—it will likely take an additional two years before “Brexit,” the term coined for its exit, actually occurs. It is also entirely possible that the agreement that is reached extends that period.
Over the next two-and-a-half or so years, negotiations will take place regarding terms of the UK’s departure from the EU and its future relationship. It is impossible to determine what the results of those negotiations will be. It is also unclear whether those negotiations—at least the latter—can be achieved by the start of 2019. In the meantime, uncertainty persists and can create its own problems and opportunities.
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