Representatives of the governments of the UK and of Switzerland have signed a bilateral agreement to replicate the effect of an existing agreement in place between the European Union and Switzerland in respect of direct non-life insurance (the 1989 bilateral agreement between the European Economic Community and the Swiss Confederation concerning direct insurance other than the life insurance). The agreement will enable Swiss non-life insurance firms writing direct risks to establish branches in the UK and vice versa.
The UK – Switzerland agreement will only enter into force one the EU – Switzerland agreement ceases to apply to the UK.
The agreement of was signed at Davos by the UK Chancellor of the Exchequer, Phillip Hammond, and President of the Swiss Confederation and Head of the Federal Department of Finance, Ueli Maurer.
Importantly, the agreement does not apply to life business or to firms wishing to operate on a service basis.