2019 Market Forecast
The German Insurance Market
The insurance industry
is not fazed by Brexit
A storm is approaching. It’s coming from the West. The storm has a name. It’s called Brexit. But, unlike with major storms that result in high losses and make insurance more expensive, the insurance industry remains unfazed. It is practising what it preaches to its customers: it is taking steps to minimise losses and costs. The measures taken by the German government to prepare for Brexit take the form of an act concerning taxation-related provisions (Brexit-Steuerbegleitgesetz). In December, when the storm was already looming, the German government approved the draft bill concerning taxation-related provisions in response to Brexit. Under the act, the Federal Financial Supervisory Authority can stipulate that EU regulations will continue to apply to UK insurers and reinsurers for a further period of up to 21 months. These would be swept away by a hard Brexit. However, UK providers can now continue to operate in the EU – and vice versa. The insurance industry’s many commercial customers can breathe easy: their cross-border insurance policies will remain valid.
Read on to find out about the main issues facing companies this year.