In this A.M.BestTV episode, Catherine Thomas, Senior Director of Analytics at ICMIF Supporting Member A.M. Best, said insurers are creating subsidiaries, building new relationships and transferring liabilities in an effort to prepare for possible outcomes depending on how Brexit proceeds. Click here to watch the entire programme.
Thomas addressed how companies are handling Brexit.
“Over the past year, in the absence of any real clarity as to what a future trade deal will look like between the United Kingdom and the European Union, U.K. insurers are really accelerating their plans to establish additional subsidiaries in the other EU countries,” said Thomas. “U.K. insurers that are currently using passporting rights to access EU business are taking more seriously the potential issue that they will not be able to service claims on existing EU policies after Brexit.”
Thomas also highlighted the factors that are playing into where a company is choosing to establish a subsidiary.
“The reasons for insurers choosing a particular domicile are very much driven by their own specific considerations. Such as proximity to clients, availability of underwriting talent, whether they have an existing operation in a particular location, the local tax regime and the local regulator,” said Thomas.
To access a copy of the A.M. Best briefing, entitled, “Insurers Step up Brexit Plans in Absence of Clarity,” visit the A.M. Best website here.
Other recent episodes of A.M.BestTV include:
- California Wildfires Will Impact Homeowners Insurers, Say A.M. Best Analysts: Sridhar Manyem, director, and Jason Hopper, associate director, both in A.M. Best’s industry research and analytics department, said losses from this year’s numerous wildfires in California will likely impact pricing and underwriting for the state’s homeowners market: http://www.ambest.com/v.asp?v=wildfires818.
- Captives Tap Reinsurers for Capital, Business and Data Support, Says Panel: At the Vermont Captive Insurance Association conference, a panel of captive insurance and reinsurance experts said captives, which are typically smaller insurance organizations, look to reinsurers as much for capital as for business expertise: http://www.ambest.com/v.asp?v=reinsurancepanel818.
A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes here. Watch A.M.BestTV episodes here.
