The UK and Europe faces considerable uncertainty in the coming years and business must prepare for change as the UK seeks to forge anew its global economic and political position post-Brexit.
To help our clients better understand what this may mean for their business, Aon experts have analysed the recent Government white paper on Brexit and sought to provide answers to some of the key issues raised.
Given recent high profile insolvencies, such as British Home Stores where Trustees were criticised for not taking action when they could, we might see Trustees take a more aggressive stance on asking for contributions.
There are some immediate issues that trustees need to consider, including the terms that they offer to members who cash in their pensions.
Insurance program response: Some organizations have expressed concern about the impact of a possible depreciation of the British pound on policy limits.The risk of needing to pay more in contributions should be factored in financial planning in light of Brexit.Beyond cash flow impact for companies in the financial sector, regulatory capital positions will be important and could directly affect a company’s ability to operate.Impact on Pensions: Brexit's impact was immediately felt in both capital and currency markets, causing significant volatility around the world.Pension funds were hit by increased liabilities and decreased assets.Clients are encouraged to contact your Aon broker with any specific questions about your insurance program and risk profile.