PRA published a letter from Anna Sweeney, the Executive Director of Insurance Supervision, to regulated insurance firms with outstanding EU liabilities following the withdrawal of UK from EU. The letter is in relation to the firm's contingency plans to ensure ongoing service continuity in respect of EU liabilities.
Firms intending to rely on EU run-off regimes—as a temporary or permanent solution to ensure service continuity—should undertake a thorough analysis of their expected run-off profile and proactively discuss their proposed approach with the relevant EU authorities. For firms seeking to transfer their EU liabilities to an EU-authorized insurer, PRA cannot guarantee that any Part VII transfer will be sanctioned by the Court or that it will be sanctioned within firms’ intended time-frames. Therefore, firms should proactively contact the relevant EU authorities to ensure that the contingency plans, and any associated risks, remain satisfactory to them. All firms should ensure that they have considered relevant legal advice when finalizing contingency plans and that these plans have been discussed and approved at an appropriate level within the firm. Firms have been requested to provide confirmation that they have engaged with all relevant EU authorities regarding this letter by April 30, 2020.
Related Link: Letter
Keywords: Europe, EU, UK, Insurance, Brexit, Outstanding Liabilities, Contingency Plans, Run-off Regime, PRA
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