BREXIT: UK insurers set out 'priority' international markets

The countries top a list of 'priority markets' identified by the Association of British Insurers (ABI) based on market size, growth potential and the presence of existing commercial and regulatory relationships. The trade body is seeking commitments from the government to address barriers to trade in these markets as part of future trade negotiations.

Insurance accounts for over 60% of total UK services exports, worth £1.8 billion, according to the ABI.

Huw Evans, the ABI's director general, said that the industry could be a "frontrunner in the race to make the most out of the new trade opportunities that are set to emerge following Brexit".

"With protectionist forces growing in strength across the world, the insurance industry can become a leading example of how free trade can benefit everyone," he said.

"The UK is seen as a world leader, and can help many emerging and developed countries which exhibit significant under-insurance. Trade deals offer the opportunity of a partnership between the expertise and best practice of British providers and the growing insurance needs of these countries. Securing sizeable and sustainable improvements in the ease of doing business in China and India will take time and commitment, but it will be worth it," he said.

Mark Garnier, the government's international trade minister, said that the industry was "a real British success story showing how to operate in foreign markets across the globe".

"I look forward to working with the insurance industry to ensure we remain a hub of competitiveness and innovation at home and abroad," he said.

The ABI has suggested the need for the government to take a "gradual" approach to improving the business environment in its target markets as part of its trade negotiations. Among the most significant issues that need to be addressed are workable rules around whether foreign insurers can set up subsidiaries or branches, and easing restrictions on foreign direct investment in various international markets.

There are also issues around reinsurance collateral requirements, migration of skilled employees and ensuring that UK holding companies can carry out financial functions involving their foreign subsidiaries, according to the ABI.

Along with China and India, the ABI has identified a further six foreign markets where it sees the potential for expansion: Hong Kong, Indonesia, Japan, Malaysia, Singapore and South Korea.

"Many insurers are already operating in the markets identified, but the potential for further growth is palpable and exciting," said Evans.