The London and International Insurance Brokers’ Association (LIIBA) has proposed that the UK Government seek a workable equivalence regime for insurers in Brexit negotiations.
In a letter sent today (22 August) to UK prime minister Theresa May, LIIBA chairman Roy White said the association was concerned that any agreement by the government to an enhanced equivalence regime will create uncertainty for insurance intermediaries.
White wrote: “We have noted the proposals the government has made in its White Paper for trade arrangements for financial services after UK leaves EU.”
“As you will be aware, there is no equivalence framework either under Insurance Mediation Directive nor Insurance Distribution Directive (IDD), which comes into force on 1 October.”
“Clearly in the absence of an existing equivalence regime, enhancements will not work.”
The letter explained that the government should seek an equivalence regime similar to the regime enjoyed by investment managers under the Market in Financial Instruments Regulation,