Nicky Morgan said the Association of British Insurers (ABI) was right to raise the issue which could see cross-border pensions or insurance contracts unable to pay out.
Morgan expressed surprise the government had not published a position paper on the issue.
Currently, British and EU companies sell insurance in both directions across the channel under EU passporting arrangements.
“The possibility that UK providers may not be legally able to pay out pensions or insurance contracts to citizens in the EU – including UK expats – is a stark example of the consequences of a ‘cliff edge’ Brexit,” said Morgan.
“Both the UK and the EU have a strong mutual interest in resolving this problem, in line with their shared objective of a smooth and orderly Brexit.”
She concludes: “The committee will no doubt want to examine the scale of the problem with the regulators, and may take evidence from the insurance industry.”
