Brexit: what does it mean for business and insurance?
Britain has been a member of the EU for over 40 years and during this time the insurance industry has grown and developed to adapt with the change of markets. For example, 40 years ago the technology market was small and there was no cyber product because it wasn’t needed. With the growth of technology, insurance has never been easier to acquire. Meaning that more and more diverse markets
As members of the EU it meant that we were able to trade freely with other EU members without taxes being applied to goods and services. Now we are leaving this may change but when it comes to the insurance industry many choose to access the market because it is one of the best on the planet. London’s insurance market is key to the insurance of many big businesses and leaving the EU shouldn’t impact on the London market, however due to the exchange rate it may have an impact on the competitiveness of other market as it will affect the premiums for other countries. However, at the moment with the exchange rate so low it is cheaper for other countries to purchase goods and services from us. This ultimately should mean that currently exports should increase as people are more likely to purchase from our businesses as it is cheaper for them to buy our goods and services. For example, in the past month 2 football clubs have been bought by Chinese investors as with such a low exchange rate they are cheaper and as a result are much more attractive propositions.
Currently Brexit is not affecting any legal matters between the UK and the EU because at present we are still considered an EU member. Despite this we have to look to the future and as a result the bank of England have decided that cutting interest rates to an all-time low is the best way to generate wealth in the economy by trying to encourage people spend money. This means that large businesses should be encouraged to invest and expand their business in the UK creating jobs and helping the economy remain strong and avoid a possible recession.
A lot of the future of the UK is being speculated at and currently nobody really knows what will be the true outcome. Safe guards are currently being put in place and deals being made to ensure that Britain remains prosperous and can continue to grow despite the decision to become an independent nation.
All in all, your business shouldn’t be damaged by the decision to leave the EU in the long run however the short term uncertainty may mean that foreign businesses hold off on deals until the waters are calmer and the picture of the economy is clearer and only time really has the answers.