BLM head of commercial law, Jonathan Askin outlines BLM's views on Brexit's potential impact on Managing General Agents
At a recent conference for Managing General Agents, BLM's head of commercial law Jonathan Askin shared his views on the continuing uncertainty Brexit was causing despite the imminent General Election on December 12.
Arguing that smaller insurers, MGAs and brokers still had very little clarity and much uncertainty regarding their future business strategies, Jonathan’s comments were reported in Insurance Business Magazine.
Speaking of the disparity between large insurance clients and smaller ones Jonathan was quoted:
“Large insurance clients can afford to move to an EU country, to take on staff, to rent premises and to handle the regulatory side of this transition with capital behind them. And even if a hard Brexit doesn’t happen, these costs are built into their business plan and these premises and workforce can still be utilised going forward.” but added this on what businesses should be doing to mitigate the risk of preparing for Brexit and particularly for the potential of a hard Brexit:
“Market access and passporting is a key area of risk and MGAs must carefully consider the regulatory permissions they are required to have implemented following Brexit. MGAs must check with insurers and other broking partners whether their distribution channels are still relevant in a post-Brexit environment.”
Jonathan addressed data as another key issue, offering that MGA businesses needed to consider how personal sensitive data is transferred between data controllers and data processors based in the UK and in the EEA.
Speaking of Brexit’s impact on MGA employees and professionals, Jonathan added:
“If you’ve got a qualification that is recognised by the EU then it will be recognised up to the point of the withdrawal agreement or the end of the transition period. But if it’s a hard Brexit, insurance and legal qualifications will stop being recognised in the EU, if they’ve been recognised by a UK industry body.”
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