The UK and Switzerland have signed an agreement at the World Economic Summit in Davos that will allow the insurance sectors of both countries to continue trading freely after Brexit.

Switzerland is a large investor in UK finance industry

The deal, signed by Chancellor of the Exchequer Philip Hammond and President Ueli Maurer of Switzerland, replicates the current agreement between the EU and the Swiss, and is considered an important step in Britain's bid to protect the financial sector's post-Brexit future.Switzerland is one of the world's largest investors in UK finance and the UK-Swiss Direct Insurance Agreement comes on the heels of the UK and US agreeing a deal last month designed to ensure the insurance and reinsurance sectors will still be able to trade freely with one another after Brexit.

Insurance industry contributes approximately £35 billion and employs over 324,000 in UK

Mr Hammond 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."Tulsi Naidu, chief executive of Zurich Insurance UK commented, “This is a pragmatic and pleasing development to come from the chancellor and his Swiss counterpart.“It’s a welcome step, ensuring that straight forward trade can continue between our globally-important financial markets – one we welcome as a Swiss-based insurer that has been trading in the UK for over 100 years.”

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US and UK also signed deal in 2017 covering insurance and reinsurance

In December, the US Treasury and the Office of the US Trade Representative (USTR) announced they intended to sign a bilateral insurance agreement with the UK to provide “regulatory certainty and market continuity” after Britain leaves the EU.The US-UK Covered Agreement also replicated an existing deal that the US signed with the EU in 2017 covering both insurance and reinsurance.Malcolm Newman, chairman of the London Market Group’s (LMG) government affairs workstream, said at the time, “The LMG welcomes the news of a new bilateral insurance agreement between the United States and the United Kingdom, which will provide much needed certainty and market continuity for UK firms operating in the US.

Deals will maintain London's position as world leader in speciality insurance

“It’s a vindication of London’s position as the world leader in providing specialty insurance and reinsurance, and offers a significant opportunity for the London Market to continue to grow over the coming years, a case that LMG member associations have been making to HM Treasury over the past year.”Antony Phillipson, UK trade commissioner for North America, added, “I’m very pleased that we’ve been able to preserve the benefits of the EU-US covered agreement for UK firms in the US, the largest insurance market in the world, once the UK has left the EU.”The agreement announced on December 11 triggered a 90-day notification period, which is required by the US Congress before the US-UK Covered Agreement can become effective.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online DirectorySubscribe to Relocate Extra, our monthly newsletter, to get all of the international assignments and global mobility news.

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