THIRD FAILURE OF MAY'S PLAN PROLONGS BREXIT PAIN FOR LONDON MARKET

The failure of prime minister Theresa May’s withdrawal agreement in parliament today prolongs the Brexit pain for long-suffering carriers and brokers. The London market has prepared extensively for Brexit, including by setting up capitalised subsidiaries in the EU and effecting Part VII transfers of books of business from the UK into EU27 countries. But legal sources have told Insurance Day some insurers had hoped to use the transition period included in the withdrawal agreement, which would have run until the end of 2020, to effect their own Part VII transfer and could be caught out in the event of a no-deal Brexit this year.