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.
Keywords: Europe, EU, Insurance, Brexit, Opinion, Service Continuity, EIOPA
Previous ArticleAPRA Releases Annual Paper on Countercyclical Capital Buffer
MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.
PRA published a public working draft, or PWD, of version 1.2.0 of the BoE Insurance XBRL taxonomy, along with the related technical artefacts.
CPMI published a report that sets out nineteen building blocks for a global roadmap to improve cross-border payments.
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.
EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.
ESMA published the final report on the guidelines on securitization repository data completeness and consistency thresholds.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.