The insurance sectors of the UK and Switzerland are set to
continue trading freely with one another after the UK has left
the EU, thanks to an agreement signed today [25 January] at
Davos by the Chancellor of the Exchequer, Phillip Hammond, and
President of the Swiss Confederation and Head of the Federal
Department of Finance, Ueli Maurer.
The new arrangement will replicate the effects of the existing EU
agreement with Switzerland, and is part of the UK’s continued
efforts to cement closer relationships with some of the world’s
most important financial markets as it prepares for a future
outside of the EU.
The agreement will come into force when the current EU-Swiss
Direct Insurance Agreement ceases to apply to the UK.
The signing of the agreement is part of a series of meetings the
Chancellor is having with leaders at the World Economic Forum in
Davos, Switzerland.
The Chancellor of the Exchequer, , said:
"The UK insurance industry contributes approximately £35
billion to our economy and employs over 324,000 people.
"Links to financial industries like the Swiss insurance
market are important for global financial systems and it's vital
that trade continues between our two countries so firms have the
certainty they need to continue to do business and invest in the
UK's bright future."
Despite its relatively small population, Switzerland is one of
the world’s most significant financial centres. In 2016, Swiss
investment in the UK’s financial services sector was over £11
billion, making the country one of the world’s largest investors
in UK finance - second only to the USA.
The UK-Swiss Direct Insurance Agreement, like the Direct
Insurance Agreement with the EU, allows firms to branch into each
other’s jurisdiction with greater ease thanks to the mutual
recognition of each other’s Insurance regulations. It will
therefore ensure continuity for UK and Swiss insurers to access
each other's markets both now and in the future, consistent with
the terms of the original EU-Swiss Direct Insurance Agreement.
FURTHER INFORMATION
- In December last year HM Treasury agreed the terms of
the US-UK Covered Agreement with the US Department of the
Treasury and the Office of the US Trade Representative. The
arrangement will provide continuity of the effects of the
existing EU agreement with the US, once the UK leaves the EU.
