As UMAL is not an insurer, we believe the impact of Brexit will be limited for us and our members. We do not rely on European insurance “passporting” so in that respect we, unlike many UK based insurers, are not scrambling to set up European hubs. Our core covers will continue to provide the same broad cover with UK jurisdiction. We don’t expect there to be any additional or frictional costs as a result of Brexit. All of our operations and services are sourced in the UK and we do not utilise any services or service providers in the EU.
Commercial insurers will most likely see a Brexit Agreement or a “no deal” as a smokescreen to be talking about additional expense and costs to try and push rates. UMAL will not.
The insurers and reinsurers we rely on to protect our balance sheet are all UK based, so we see no impact there.
We do not anticipate any staff recruitment or retention issues, either at UMAL or at any of our supporting providers.
In short, any Brexit deal or ‘no deal’ scenario is unlikely to have any significant impact on UMAL and Members will continue to enjoy largely the same benefits after Brexit.
As far as cover is concerned, we may have to react to no deal, or an unfavourable deal, in respect of our cover being acceptable in relation to the Public Liability and Medical Expenses sections. Students and Staff are quite often required by receiving Employers or Institutions to evidence that they have Liability cover, or indeed medical cover, in place. This is however not a difficult issue to resolve and action will be taken promptly if needed.
We anticipate that the main impact of Brexit in the short term will be possible disruption to EU travel, potentially giving rise to claims under the travel cover. Motor insurance may also be an issue as additional documentation may be required in order to drive legally and demonstrate the required insurance cover within the EU. We are monitoring developments closely until the situation becomes clearer.
In the event of no deal, UK and EU airlines would lose the right to operate flights between the UK and EU without specific permission from individual EU states. The UK government has indicated that the UK intends to grant permission and would expect EU countries to reciprocate. The European Commission is proposing that “point-to-point” flight connections, i.e. connections from the territory of the United Kingdom to the territory of the EU27, are temporarily allowed on the basis of a unilateral measure.
This measure will enter into force in case of no deal, if the United Kingdom reciprocates, and last until 30 March 2020. This is to avoid a full interruption of traffic between the EU and the United Kingdom.
The UMAL travel cover does not specifically exclude disruption of this nature and will respond according to the wording in the usual way. Travel delay and curtailment claims however would be excluded as cover is for specific perils and they do not include these circumstances.
A green card will be required for driving in the EU, EEA, Andorra, Serbia and Switzerland. For fleets a green card will be needed for each vehicle to be driven and possibly also for each trailer (this varies by country)
ERS and NFU both advise that they are prepared and have contingency plans in place for a no deal scenario but drivers will need to ensure they have all necessary documentation when driving or hiring vehicles in the EU.
If you have any other specific queries or require additional information, please contact
Paul Cusition, CEO
T: 020 7847 8672 | [email protected]