The UK’s seismic decision to leave the European Union (EU) following the referendum on 23 June this year continues to dominate the thoughts of travel insurers as we head towards 2017 and the first stages of the Government’s negotiations, writes Jon Phillips, head of emergency assistance and cost containment teams at Travel Insurance Facilities Group (TIFGroup)
There is much uncertainty about what will happen over the next two years as Britain negotiates its exit and how this will impact on our industry here in the UK. How will changes to passporting rights deter European travel insurers from writing business in the UK? What, if anything, will replace the European Health Insurance Card (EHIC), which entitles Britons to free or reduced-cost access to public healthcare facilities in member countries? How will claims costs be affected if airlines cannot operate freely all over the EU under the Union’s air service agreement?
These questions and many more will become the focus of attention as negotiations proceed. However one certainty was apparent within 24 hours of the result: claims cost would increase dramatically as sterling lost value against major currencies, particularly the US dollar and the Euro.
At the beginning of 2016, insurers were settling […]