Editor’s letter: July/August 2016

When I came to work on Friday 24 June it was with a heavy heart but a spring in my step. I voted Remain. But what was important was that democracy had worked.

It is self-evident that there was no planning by anyone on either side of the political divide for what a decision to leave the EU would lead to.

Those political leaders who are still in post, and at the time of writing most have left or are on their way out, now have an immense challenge on their hands.

I have an inglorious track record of predicting recessions. In fact I have predicted seven of the last two.

However, I can see no way that the UK will avoid a financial reverse in the short term. The only question in my mind is just how severe it will be. Dealing with the downturn is just one of the elements to address in the first wave of priorities.

The insurance industry was quick to react on 24 June straight after the referendum result was confirmed. There was a consistent across the board “business as usual” message with the understandable caveat that it was too early to go into too much detail about what happens next. The insurance industry has many good qualities not least resilience and innovation. It is going to need these in the months and years to come along with lots of cool heads.

To exit the EU was not what I voted for. But it is the will of the people and the start of the process has to be enacted. There are reasons to be fearful but without being wilfully self-delusional now is the time to turn the discussion to future opportunities from our new starting point.

It is time for a positive problem solving mindset and the insurance industry will have a crucial role to play in the debate.

Emmanuel Kenning

Editor, Insurance Age