EIOPA Issues Opinion on Service Continuity in the Context of Brexit
EIOPA issued an Opinion on service continuity in light of the withdrawal of the UK from the EU. The Opinion underlines the importance of sufficient preparation so that undertakings can continue to service contracts following the UK’s withdrawal from EU and prevent insurance activities without authorization. The Opinion is addressed to insurance undertakings and national supervisory authorities.
The Opinion recommends steps to be taken by insurance undertakings and national supervisory authorities to ensure service continuity of cross-border business between the UK and the 27 EU member states (EU27). Steps will depend on the particular situation of the affected undertaking. They may include:
- Transfer of contracts of UK undertakings with policyholders in the EU27 to an insurance subsidiary established in an EU27 member state
- Transfer of insurance contracts of EU27 undertakings with UK policyholders to an insurance subsidiary established in the UK
- Establishment of a third-country branch in the UK or in the EU27 member state of the policyholder
- For UK undertakings in the legal form of a European company, the change of domicile of the company to an EU27 member state
Additionally, insurance undertakings are advised to have contingency plans for the eventuality that there is no political agreement between the EU and the UK at the date of withdrawal. Supervisory authorities are also recommended to take appropriate steps to ensure that insurance undertakings are adequately prepared and have, for example, conducted realistic impact assessments and developed adequate contingency plans, allowing sufficient time to implement the plans. EIOPA will monitor, in close cooperation with national supervisory authorities, the development and implementation of the contingency plans.
Related Links
Keywords: Europe, EU, Insurance, Brexit, Opinion, Service Continuity, EIOPA
Previous Article
APRA Releases Annual Paper on Countercyclical Capital BufferRelated Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards