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Brexit and the insurance industry 1 year on...

[fa icon="calendar"] 05-Jul-2017 14:11:47 / by Dee Tshuma

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Here we are now - a year has passed since the Referendum and Article 50 was triggered in March by Mrs May.  It took some time but we got there eventually – a recurrent statement, used by many throughout the process, was the phrase “We have to respect the will of the people.” In this case, democracy means Brexit, and whichever side you sit on this: Patriotic or Pro EU; the show must go on!

Great Britain leaving Europe, improbable at first yet real now and it affects the whole world.

What a time to be alive, I am serious – so much is going on in the world. Gone is “La Belle Epoque” a time where the pace was slightly slower, your surroundings were safe and secure; sure, we are truly never 100% comfortable but it was ideal, right?

Recent events (economical, political, social) have proven that we are moving at a very fast pace, who knows if it is not actually regressing – only time will tell. One thing I am certain about this century is that uncertainty is now a commodity.

There has been a shift in the way things previously worked. The UK is flying the nest, by leaving the safety net of the market that gives UK businesses unfettered access to 500 million customers. The divorce hearing between Great Britain and Europe’s 27 started last Monday, and so far, both parties are keeping the fundamental details of these talks elusive and playing nice. All the while business leaders, general members of the public across the U.K and Continental Europe are becoming exasperated.

Some UK based businesses have already activated their contingency plans, in the event of a now more than likely “Hard Brexit”. Lloyd’s of London, the world’s insurance market titan, has already confirmed Brussels as its new European hub, just in case the country would not remain part of the European Union’s single market.

On the other hand, some British businesses are finally breathing a sigh of near relief. At best they are hoping to strike a deal with the EU’s famous 27 similar to Norway, Switzerland or Canada. Additionally, they shall finally be free to break off the EU’s “Members Rules” or some could argue “chains” preventing them from exploring in diversified International Markets.  Perhaps the timing is just right for truly re-connecting with Nations of The Commonwealth, as 52 members who share the same principles and values can only be a positive.   

Yet, before that a dose of reality, how to untangle a 40 year relationship? Not so simple because as I indicated in the beginning no one knows how each side will be performing 3, 5 or even 10 years from now. That is what makes everything so exciting.  Uncertainty has taught me to hope for the best and expect the worst. Equally, these changing times have made me want to actively sharpen my “preparation skills” as acting quickly but proportionately is key to managing the risks and seizing the opportunities.

Finally, as Shakespeare’s text once stated: “What’s in a name?” I say everything - Eurobase: Reliable, Mindful, Personal – robust solutions for Banking and (Re)insurance in the uncertain era – how prepared are you?

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Topics: Insurance, Reinsurance, Blog, Brexit, europe

Dee Tshuma

Written by Dee Tshuma