Brexit – British insurer more affected than German

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Many British and German insurer carrying on business in the other country. In the cross-border business, only a few of the insurance act, but groups on the self-employed subsidiary, foreign-registered. Possible the Single-Licence principle, which would be a Brexit on the Brink.

Brexit – Britische Versicherer stärker betroffen als deutsche

A EU-state operation of an insurer of the permit for the business, the permission in all EU countries. We therefore speak of a “European passport” or the Single-Licence principle. A Brexit, this mutual passporting would be eliminated. On the German side, with relatively few insurers would be affected by the loss of the passport for the UK; the affected volume of premiums would be low. In the UK, by contrast, a much higher number of Insure would be affected. With this theme, the new edition of economic analysis series on “Macro and markets employs a compact” of the General Association of the German insurance industry (GDV).

The Central findings:

  • While the cross-border business with France or Italy is mainly conducted through domestic subsidiaries, make use of the insurer for the cross-border business between the United Kingdom and Germany to a large extent the possibilities of the European passport. This shows that, in comparison to Germany, the greater number of British insurers from the loss of the “European passport” would be affected.
  • It would be desirable that the mutual market access. This, however, would be the same competitive and regulatory conditions between the EU and the economic area, which operates independently of great Britain.
  • In any case, property would need to be appropriate transition rules provided, in particular for people affected by life insurance contracts the term of which may extend far into the Post-Brexit-time.
  • Given the high complexity and time pressure of the negotiations, an implementation phase would be in addition to the necessary adaptations of business operations for the new legal situation.

With a share of over a fifth of the European contribution revenue, the UK is the largest insurance market in Europe and worldwide, the no. 4 behind the USA, China and Japan. In life insurance, a quarter of the European contribution revenue in the British market, even compared to a share of second-placed France by 19 percent, and 13 percent for the German market.

In the UK, traditionally, many of the risks from other countries are drawn

The special role of the UK financial services sector is also in the insurance sector: In comparison to the economic power of great Britain, the British insurance market is developed above average. In addition to the high importance of private pension provision in the UK, this is mainly due to the fact that the British market traditionally, many risks from other countries are drawn.

Also in reinsurance, the UK is one of the world’s most important locations. With 6.7 percent of the global reinsurance contributions, the UK remains, however, far behind the share of Germany (23.3 per cent) and is behind Switzerland, the third largest reinsurance location.

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