Throwback Thursday: Major insurer’s EU fears

10 June 1971: General Accident’s EU fears

Speaking at the insurer’s 1971 AGM, Lord Polwarth, chair of General Accident, raised concerns about Britain joining the Common Market.

“We shall be subject to common legislation affecting insurance, to be set out in directives issued by the EEC to the governments of member countries.

“If they [directives] are accepted, two of the main effects will be to bring about what is called compartmentalisation of assets – that is the obligation to maintain separate technical reserves in each country of operation) and eventual control of such matters as premium rates and mortality tables.

“There is real danger that the legislation agreed by the EEC could be detrimental to the interests of British insurers, who transact so much more of their business on a worldwide basis and benefit from the flexibility which this affords.

“If we are to join the Community the sooner the better so that Britain can exert some influence on the proposals before they are finalised.”

The UK joined the European Economic Community, the precursor to the European Union, on 1 January 1973.

Brexit, the UK’s official departure from the European Union, occurred on 31 January 2020. This date was the result of a referendum in 2016 where 51.9% of voters chose to leave the EU.

General Accident was absorbed into Aviva through a series of mergers.