Chancellor’s repsonse to Treasury Committee’s letter on the effect of Brexit on insurance contracts

The Government has published a response to the Treasury Committee letter on Brexit and insurance contracts.

The letter acknowledges the risk that the UK’s withdrawal could create legal uncertainties as to the status of existing cross-border insurance. The Government has been working with the insurance industry and others in the financial services sector to understand how the UK’s exit from the EU could impact financial services firms and their customers.

Philip Hammond explains that the final EU-UK relationship will be a matter of negotiation, but an integral part of delivering the UK’s withdrawal will be the negotiation of a time-limited interim period, to provide certainty and avoid a cliff-edge for business and individuals during the transition from the current structures of membership to the new relationship.

The letter concludes with a remark that the issues be discussed in a meeting between Philip Hammond and Nicky Morgan on 11 October.