How Will Brexit affect Insurance in Ireland?
It is quite simple. At the moment, Services like people, don’t need a passport unless they go outside the EU. Up until the UK leaves the EU, that means the insurance industry can operate anywhere in Europe as long as they are regulated within the EU.
Once the UK leaves the EU it will obviously be outside that area and unless an agreement is reached, UK based insurers will not be able to operate in Ireland. UNLESS a separate agreement is reached and then they will need to be regulated by the Central Bank of Ireland. This obviously brings a whole level of bureaucracy for both sides, with additional costs. Some insurers will decide not operate here causing less competition,
It will also have an impact the other way. There are insurance companies, particularly those based in the IFSC who operate overseas, including the London market. This business will be seriously affected by the changes for the same reasons.
Hopefully during the two years that it takes to negotiate the UK exit that an acceptable arrangement is made. It is imperative that we can continue as is, because the Irish Insurance sector is heavily dependent on the London Insurance Market.