Broker trade body, the British Insurance Brokers' Association (BIBA), has warned that having no clear agreement in place for the right to carry out cross border trade with the EU, as is currently possible, creates huge uncertainty for the UK market.
The warning followed Theresa May's letter triggering Article 50 which has started the two-year clock ticking on the UK's withdrawal from the EU.
According to the trade body, 2,758 insurance brokers possess passports to trade in the EU and UK brokers trade £7.8bn in European revenues, meaning the UK holds the number one position in the European insurance market.
Steve White, BIBA's chief executive said "As Theresa May invokes Article 50, we call on her to deliver what she stated in her Lancaster House speech - the greatest possible access to the EU through a bold free trade agreement".
The broker organisation argued that the UK is viewed as the gateway to Europe and US firms choose to feed business to the UK in order to find an insurance solution for their pan-European products, rather than having to go individually into 27 separate EU states. White added, "This is why we need a sector specific solution to enable the UK insurance market to continue to provide cross border services to the EU, bearing in mind the importance of our sector to the economy and the balance of trade".
Lord Hunt of the Wirral, the chairman of BIBA concluded "BIBA has identified more than 2,400 highly skilled and highly valued EU citizens work in the London insurance market and a variety of business models depend on this. Conversely, many UK nationals hold key positions across continental Europe. BIBA has called for a mutual positive solution for the workforce on both sides of the channel".