The Impact of Brexit on the UK Insurance Industry
The uncertainty surrounding Brexit is having significant ramifications on many UK industries, including the insurance market, impacting both businesses and individuals nationwide. Currently all of the possible outcomes are pure speculation, but the possibility of a no deal scenario is casting doubt over the insurance sector with some of the largest British insurers suffering a 15% drop in share price immediately following the 2016 referendum.
What are the possibilities for the UK insurance industry when we leave the EU at the end of October?
Currently, the UK invests £1.8 trillion in the insurance industry, making us the third largest insurance investor in the world. By leaving the single market, the UK risks losing the right to underwrite policies freely and provide insurance anywhere in the EU without limitation. The potential impact of these restrictions could damage the UK economy, reducing the £18 billion of taxes brought in by the insurance industry. There is also an increased risk to the jobs of the 300,000 people who work in the industry in the UK.
Once we leave the European Union, we will no longer be bound by EU laws. The UK government will be free to outline their own rules and regulations, rather than the Solvency II policy which dictates the EU regulations. The European insurance products are dictated by this policy, including vehicle, home and business insurance policies.
If the UK is no longer an EU member state, the insurance industry will not be required to comply with their strict compliance legislation. For example, the EU has stringent gender directives which prevent women drivers receiving lower car insurance premiums despite proof that they are safer drivers. Client: Robison Date: 29th August 2019 Copy Type: Website SEO blog page Keyword Focus: Keywords Keyword Frequency Volume (Average Monthly Searches) Keyword Difficulty CPC ($) Competitive Density Impact of Brexit on UK insurance industry 50 64.79 0 0.07 Page Title: The Impact of Brexit on the UK Insurance Industry
Unfortunately, whilst the UK will be able to create its own rules and regulations, they will also be required to develop new policies, documents and literature. As a result, insurance providers and brokers will have to accept high short-term costs.
Post Brexit, the UK and EU will still be required to work together to maintain insurance coverage. There are two key examples of models that work effectively despite not being part of the single market: Switzerland and Norway. This proves that there are effective methods of working with the EU that the UK could mirror. However, the inability to directly influence EU legislation will mean that there is a risk of being more tightly controlled than prior to Brexit.
In addition to impacting UK insurance companies and brokers, there is a high likelihood that financial services businesses from EU countries that have a base in the UK may choose to leave. Despite this, the uncertainty over Brexit makes it unclear whether or not it will negatively affect the financial services sector.
As an experienced broker working across a range of policy types, we are well equipped to deal with any impact that Brexit may have on the industry. Whatever your circumstances, we are here to help. Contact us today for advice or a quote for your business or personal insurance policy on 01730 265500 or email firstname.lastname@example.org
Robison is an experienced business and personal insurance broker based in Petersfield, providing advice and services to businesses and individuals within Hampshire and the surrounding areas. Our highly trained staff are on hand to offer support and guidance, benefiting from a wealth of experience working with businesses across a vast range of industries. Whether you are looking for public liability insurance or a whole of life insurance policy to protect your family should the worst happen, our team can offer tailored advice and services no matter your requirements
Why you should invest in the latest security measures
Recent studies have shown that homes with inadequate or limited security measures in place are five times more likely to be burgled than those utilising simple security techniques and technologies, with properties most commonly broken into during the day when the majority of inhabitants are likely to be at work.
In this blog, we review some of the measures and technologies available to protect your high net worth home and reduce your household insurance premium.
When is your home most at risk?
Perhaps understandably, for most homeowners, the riskiest time of the year is when the property is unoccupied, during summer holidays, ski season and over the Christmas period. However, there are a number of simple measures that you can put in place to reduce the risk and protect your property.
While your property is unoccupied, it may be wise to consider cancelling deliveries of items such as milk and newspapers that would otherwise pile up on the doorstep. When left outside for several days, items such as these are likely to draw the attention of would-be burglars. Royal Mail also have a ‘keepsake service’ that will hold your mail until you return home to avoid parcels and envelopes piling up on the doorstep.
Simple ways to keep your home safe
There are a number of other steps that you can take to protect your home while it is unoccupied. One easy way to avoid your home looking vacant is to ask a neighbour to park on your driveway. It may also be worth considering whether there is an active Neighbourhood Watch in your area which you can join. These simple measures can provide an added sense of security whilst potentially reducing your household insurance costs.
Often, thieves capitalise on chances made available to them. For example, they will choose which property to target based upon the visibility and ease of access to valuable items. Simply ensuring that keys and valuables are kept out of sight reduces the likelihood of your home being targeted. Many home insurance policies offering buildings and contents cover require you to have a safe installed, whilst others may reduce the cost of your home insurance if a safe is in place.
In today’s world where we are never without our mobile phone, every event is documented on social media including holidays. But posting about your ski or beach trip whilst you are away could highlight your home as an easy target to potential burglars. Save your holiday snaps for your return to avoid your unoccupied property being publicised.
Home improvements to protect your property
In order to qualify for buildings and contents insurance, it is often a requirement that you have sufficient locks on all doors and windows. It may also be wise to consider installing reinforced laminated glass, especially in properties with large patio doors that may otherwise allow easy access to the property.
Burglars will often assume that a house with closed curtains and blinds during the day is likely to be empty. A number of smart home systems can be integrated with automated curtains and blinds to imitate your daily routine.
Introduce the latest home security systems
Smart homes are a fantastic example of how technology can not only make our lives easier but also safer too. As a simple yet effective measure, it is advisable to install motion sensor external lighting and alarm systems around your property.
Security cameras are also highly recommended, and a number of systems are now available that allow you to interact with anyone approaching the property. Using simple motion detection technology allows you to keep track of movements around your home to differentiate intruders from the local wildlife. Video doorbells are a great example of this, giving you the ability to speak directly to visitors, couriers or those with less than honest intentions as though you are in the property.
Insurance services to protect what is important to you
No matter what precautions you put in place, it is still possible that a burglar may find a way to get access to your property. That is why it is important to ensure that you have the correct level of cover in place to protect your home. When you renew your policies, it is advisable that you review your policy limits and requirements in detail to avoid invalidating your contents insurance cover. To find out more about the dangers of underinsurance, please see our recent blog here.
Another aspect that should be considered is car insurance. If you are intending to leave your vehicle at the airport or an airport parking provider for a long period of time, you may also need to inform your insurance provider. As an experienced broker with a speciality in sourcing bespoke policies for high net worth vehicles, assets and properties, we will work with you to ensure you are fully covered, regardless of the circumstances.
If you own a high net worth property, vehicle or any other kind of asset, and would like some impartial advice on the best way to protect your hard-earned property, contact us today on 01730 265500 or email email@example.com
Robison is an experienced high net worth insurance broker based in Petersfield, providing advice and services to businesses throughout Hampshire and the surrounding areas. In addition, we work closely with individuals to protect their families and properties for years to come. From health and classic cars, to sculpture and fine art, our team can offer tailored advice and services no matter your requirements.