Brokers split on Brexit impact

11 May 2016

Brokers are split down the middle when it comes to assessing the impact of a ‘leave’ vote in the upcoming EU referendum, according to the Q2 Broker Pulse - a quarterly poll of brokers from insurance and risk law specialist, BLM.

42% believe a ‘Brexit’ would have no impact on insurance buying habits, while 40% think it would. 18% are unsure.

This was the key headline from the second Broker Pulse, which questions a wide-range of UK brokers on issues affecting the broker community every quarter.

Helen Devery, partner and head of the broker sector at BLM said: “The risks or benefits associated with a potential ‘Brexit’ are being discussed by brokers across the UK, and will continue to be right up until the vote on 23 June.

“Some experts – including Lloyd’s – have warned that a ‘leave’ vote will result in uncertainty and a weaker position for insurers and European rivals operating in London. What the Broker Pulse shows is that this community is split on what impact – if any – a British exit would have on insurance buying.

The Q2 Broker Pulse also found that knowledge of the Enterprise Bill and the impact it will have on late insurance payments was low, with just 52% aware of the details around this new legislation.

Devery continued: “The Enterprise Bill has now been enacted affecting policies incepted from 4 May 2017. This means all claims must be paid ‘within a reasonable time’, and failure to do so could lead to compensation for any resulting loss. Savvy brokers are getting their houses in order now, ensuring they are prepared before the Act comes into force.”

Other findings include:

  • 58% of respondents were not aware of the impact of the upcoming EU General Data Protection Regulation, which will bring revised and increased powers and functions of EU data protection regulators and higher levels of fines.

  • 73% are unsure of the impact that the rising use of drones will have, such as liability and coverage issues around personal injury, invasion of privacy, aerial surveillance and data collection.

     

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Disclaimer: This document does not present a complete or comprehensive statement of the law, nor does it constitute legal advice. It is intended only to highlight issues that may be of interest to customers of BLM. Specialist legal advice should always be sought in any particular case.

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Helen Devery

Helen Devery

Partner,
Manchester


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