All right. You have bored me in to submission so I have bitten and looked up what a Part VII transfer is.
This tends to suggest that rather than policies and risks being transferred to separately owned EU insurance companies, Insurance companies based in the UK just set up their own 100% owned subsidiaries in the EU as an alternative to the old passport arrangement:
Part VII transfer - Wikipedia
Something else that will settle down after a brief reorganisation and administration.
Thanks for biting.
I’m genuinely not trying to wind you up or to reverse the ‘will of the people’ or being unpatriotic. I am just making one simple point that cannot be disputed.
EEA risks cannot be written in the UK and the response of virtually all insurers was to file Part VII transfers. These transfers are indisputably because of Brexit.
The estimated value of these policies is more that £60bn.
Now, IPT is somewhere between 12% and 20%.
By my rough calculations, the Exchequer has lost out to the tune of between £7.2bn and £12bn in IPT. That IPT is now being collected by Madrid, Amsterdam, Belgium, Paris, Frankfurt. It doesn’t find it’s way back to the UK.
Contrast that with the £9.4bn net contribution that the UK made to the EU to be a member of the single market.
My example is just a tiny piece of the City of London. There are lots of comparable examples.
Why did the government fail to include services as part of the Brexit negotiation? Why focus on fish so much?