EIOPA Issues Recommendations for Insurers in Light of No-Deal Brexit
EIOPA issued recommendations for the insurance sector in light of UK withdrawing from EU without a withdrawal agreement. The recommendations, which are addressed to national competent authorities, provide guidance on the treatment of UK insurance undertakings and distributors with regard to cross-border services in EU after the withdrawal of UK from EU without a withdrawal agreement. The recommendations will apply as of the date following that on which the EU acquis ceases to apply to, and in, UK.
The recommendations provide guidance on the supervisory treatment of residual insurance business, with the objective to minimize the detriment to policyholders with cross-border insurance contracts. National competent authorities should ensure an orderly run-off of the insurance business, including the appropriate supervision. UK insurance undertakings without authorization should not conclude new insurance contracts. Furthermore, the recommendations provide guidance on the application of relevant legal provisions with regard to the cross-border insurance of UK insurance undertakings. Certain recommendations are also related to the orderly run-off, authorization of third-country branches, lapse of authorization, portfolio transfer, change in the habitual residence or establishment of the policyholder, cooperation between the national competent authorities, communication to policyholders and beneficiaries, and distribution activities.
Enhanced cooperation between national competent authorities is necessary to address issues arising from the unauthorized cross-border insurance. EIOPA will facilitate the necessary cooperation through the establishment of cooperation platforms. UK insurance undertakings should disclose the consequences for their rights and obligations to the policyholders and beneficiaries of contracts affected by Brexit. Guidance on the application of the legal framework for insurance intermediation regarding UK distributors after Brexit is also part of the recommendations.
Related Links
Keywords: Europe, EU, UK, Insurance, Brexit, Cross-Border Activities, Supervisory Convergence, EIOPA
Previous Article
BaFin Consults on Insolvency Treatment of Liabilities Under CRRRelated Articles
|
News
HKMA Decides to Maintain Countercyclical Capital Buffer at 2.5%HKMA announced that, in accordance with the Banking (Capital) Rules, the countercyclical capital buffer (CCyB) ratio for Hong Kong remains at 2.5%.
April 16, 2019
WebPage
Regulatory News
|
|
News
EP Approves Agreement on Package of CRD 5, CRR 2, BRRD 2, and SRMR 2The European Parliament (EP) approved the final agreement on a package of reforms proposed by EC to strengthen the resilience and resolvability of European banks.
April 16, 2019
WebPage
Regulatory News
|
|
News
FDIC Consults on Approach to Resolution Planning for IDIsFDIC approved an Advance Notice of Proposed Rulemaking (ANPR) and is seeking comment on ways to tailor and improve its rule requiring certain insured depository institutions (IDIs) to submit resolution plans.
April 16, 2019
WebPage
Regulatory News
|
|
News
EP Resolution on Proposal for Sovereign Bond Backed SecuritiesThe European Parliament (EP) published adopted text on the proposal for a regulation of the European Parliament and of the Council on sovereign bond-backed securities (SBBS).
April 16, 2019
WebPage
Regulatory News
|
|
News
PRA Seeks Input and Issues Specifications for Insurance Stress TestsPRA announced that it will conduct an insurance stress test for the largest regulated life and general insurers from July to September 2019.
April 15, 2019
WebPage
Regulatory News
|
|
News
PRA Finalizes Policy on Approach to Managing Climate Change RisksPRA published the policy statement PS11/19, which contains final supervisory statement (SS3/19) on enhancing banks’ and insurers’ approaches to managing the financial risks from climate change (Appendix).
April 15, 2019
WebPage
Regulatory News
|
|
News
EBA Single Rulebook Q&A: First Update for April 2019EBA published answers to nine questions under the Single Rulebook question and answer (Q&A) updates for this week.
April 12, 2019
WebPage
Regulatory News
|
|
News
EIOPA Statement on Application of Proportionality in SCR SupervisionEIOPA published a supervisory statement on the application of proportionality principle in the supervision of the Solvency Capital Requirement (SCR) calculated in accordance with the standard formula.
April 11, 2019
WebPage
Regulatory News
|
|
News
FED Updates Form and Supplemental Instructions for FR Y-9C ReportingFED updated the form and supplemental instructions for FR Y-9C reporting. FR Y-9C is used to collect data from domestic bank holding companies, savings and loan holding companies, U.S intermediate holding companies, and securities holding companies with total consolidated assets of USD 3 billion or more.
April 11, 2019
WebPage
Regulatory News
|
|
News
OSFI Finalizes Guidelines on Liquidity Adequacy and NSFR DisclosuresOSFI published the final Liquidity Adequacy Requirements (LAR) guideline and the net stable funding ratio (NSFR) disclosure requirements guideline.
April 11, 2019
WebPage
Regulatory News
|
