Insurers operating in Britain must continue to be able to sell their products freely across the European Union after Britain leaves the bloc, an insurance trade body said today.
Insurers are reliant on "passporting rights" to sell insurance policies throughout the European Union.
Several, including the Lloyd's of London insurance market, have said they will need to set up EU subsidiaries if Britain loses access to the single market.
"It is vital to maintain existing freedoms for insurance services," the International Underwriting Association said in its first statement detailing its views on Brexit since the June referendum.
"Any trade agreement between the UK and EU should first preserve passporting and branching arrangements and recognise the equivalence of regulatory regimes," the association added.
Worries from customers about future insurance cover meant insurers would look to establish branches and subsidiaries in Britain and Europe as protection against a possible loss of passporting rights, the IUA said.
"Regulators will need to prepare to deal with an unprecedented increase in license applications."
UK insurers have been quicker than banks to outline plans to set up regulated subsidiaries in the EU if they lose single market access, with Dublin the favoured location.
The IUA said it is working with the London Market Group, which represents several insurance trade bodies, to present its concerns over Brexit to the UK government.
Some of the contingency plans proposed by insurers include:
AIG - US insurer AIG last week said it may move itsEuropean headquarters from London to another EU country, possibly Ireland because of the Brexit vote.
AVIVA - Insurer Aviva said it was "considering" turning its Irish branch back into a subsidiary.
XL CATLIN - Bermuda-domiciled insurer XL Catlin said its UK business XL Insurance Company SE has branches across Europe and operates under the Societe Europeen structure, currently registered in the UK. The Societe Europeen structure is relatively easy to move to a different EU jurisdiction if needed, subject to regulatory approval.
LLOYD'S OF LONDON - The Lloyd's of London insurance market is working on plans to move some business to the European Union, aiming to be ready for the shift as soon as Britain starts divorce proceedings from the bloc.
LANCASHIRE - Insurer Lancashire Holdings said it could consider underwriting some European business from its Bermuda base, if needed.
BEAZLEY - Lloyd's of London insurer Beazley said it had filed an application this month with the Central Bank here to get approval for its Irish reinsurance business to become a European insurance company.
HISCOX - Lloyd's of London underwriter Hiscox Ltd said it would consider setting up a new EU-based insurance company to weather the possible impact of Brexit.
CHESNARA - Chesnara, an insurance-focused takeover specialist, said it could move its headquarters to Amsterdam depending on the regulatory environment in Britain after negotiations to leave the European Union.
ADMIRAL - Motor insurer Admiral Group said it could move its European business to Ireland or another country. Admiral, one of Britain's largest car insurance providers with a market share of over 11%, also has operations in Spain, Italy and France.
