As the debt crisis in Europe trundles on the risk of a member
state exiting the Eurozone remains a real threat. Whilst it is not
entirely clear what the effect of a member state exiting the
Eurozone would be on the wider world economy or specific contracts
it is expected that economies and businesses will feel a
significant, potentially negative, impact, at least in the short
term.
Insurance companies should now be considering what the impact of
a Eurozone exit would be on their business by considering what
their investment exposure is to the Eurozone (particularly those
countries at higher risk of an exit) and also what the potential
impact on their contracts will be.
Any exit will most likely be sudden, potentially happening
overnight and as such businesses will need to be able to respond
immediately to minimise the disruption to their business.
