Brexit was a decision that shook the financial world. On June 23rd 2016, a sliver of a majority voted for the United Kingdom to exit the European Union (EU). The schism caused consternation, and the possible impacts of such a move saw the GBP plummet 10% the day the news came to light.
Clarity has proved to be elusive since. It has neither been a hard Brexit nor a soft one, and most definitely not a red, white and blue one. It’s been a protracted, hard fought affair marked with internal divisions within the UK before even approaching the EU negotiating table.
The extended nature of the exit negotiations have obscured the eventual shape a deal might take. While some form of equivalence agreement might be reached on the trade of goods, global industry is bracing for barriers in the services market.
The lack of clarity, the possibility of services being disrupted, and the threat of firms not being able to source skilled human capital within the UK market, has led to many global insurance companies setting up contingency plans. Firms are eyeing financial hubs on the European mainland, and also looking further afield for domiciles in which to headquarter.