Unless the UK government can secure guarantees on the validity of insurance contracts after Brexit there will be even more chaos on the Irish border, as well as extra red tape and costs for the millions of EU-27 drivers in Britain and British drivers in the rest of the EU, Labour MEPs warned after the Commission said there is no guarantee Brexit won’t disrupt insurance and derivative contracts.
Labour’s Neena Gill MEP yesterday asked Valdis Dombrovskis, EU vice-president in charge of financial stability, financial services and capital markets union, how it can ensure the 96 trillion pounds of derivative and tens of millions of insurance policies can continue and not be disrupted when the UK leaves the EU in the absence of a clear regulatory framework. Mr Dombrovskis replied that he “would be somewhat hesitant to give guarantees because negotiations are still ongoing and the outcome is still not 100 per cent clear”.
Earlier this week, however, UK officials claimed British drivers will be able to use their existing insurance policies when travelling in Europe after Brexit, saying the UK would remain inside the “free circulation zone” - comprising all EU countries plus Serbia, Switzerland and Andorra - after it leaves the EU.
Neena Gill MEP, member of the European Parliament economic and monetary affairs committee, said:
“The validity of insurance contracts after Brexit is yet another issue that hasn’t been resolved, creating more uncertainty - particularly around the Irish border. As the Commissioner told me yesterday, there are currently no guarantees and the outcome is not clear, yet the UK government seems to assume everything will be fine.
“Unless these issues are resolved, we could end up with the ludicrous situation of someone having to purchase additional insurance and possibly a green card, and have to show it each time they crossed the Irish border. This will create more red tape, more costs and more delays. The Irish border issue, along with the rest of Brexit, is far from resolved.”
Friday, May 18, 2018