Evans said: ”Underpinning our five key asks on Brexit is a sustained focus on the need for an implementation period which stretches from the end of the UK’s membership in 2019 to a period when the new relationship can be broadly established. Not only will this be a sensible way of delivering such a momentous change for both sides, if agreed early it provides the option for the firms most affected by Brexit not to take swift decisions in 2017 on scaling back UK operations.

“We call on the government to make a clear commitment that it will seek an early agreement with our European partners on a high level transitional implementation period which will help avoid economic shocks to both the EU and UK. This is in both sides’ interest, would not be a sign of negotiating weakness and is essential if we are to maximise the smooth running of the financial system after 2019.

“Without such a commitment there is little incentive for insurers considering relocation to take a longer term view on whether to press ahead with a decision.”

The five key asks agreed by the ABI Board and set out in September are:

• Securing a regulatory environment that is appropriate for the UK market.
• Retaining the ability to passport out of and into the UK.
• Closely mirroring the EU data protection regime to avoid a quagmire of complexity around how personal and non-personal data is protected.
• An improved future migration policy that enables the employment of high-skilled professionals from both within and outside the EU.
• A strong focus on regulatory dialogue and international agreements in overseas financial services markets, especially in India and China.