The Association of British Insurers (ABI) has welcomed a speech by Chancellor Philip Hammond proposing a close alliance with the EU on financial services post-Brexit.

“It makes sense for both the UK and the EU that we continue to collaborate closely on cross-border financial services,” Mr Hammond said.

“I want to challenge the assertion that financial services cannot be part of a free trade agreement.”

The ABI has urged the Government to move quickly to secure a deal.

“It would defy common sense not to have a Brexit deal on financial services,” association Director-General Huw Evans said. “It’s now time for everyone to drop the dogma and get around the table.

“The insurance and long-term savings sector is already well integrated and our regulations are aligned, so if the will is there, a deal that works for everyone can be done.

“Insurers across the EU and in the UK must have legal certainty they can pay their customers, and it is vital we maintain the flow of skilled labour between the UK and EU that will keep the UK a world leader.”