BRexit Bulletin April 2018

Brexit is now seen as one of the most important and difficult issues that has faced the UK insurance industry.

Following the announcement by the UK government, just over 12 months ago, that the UK would be leaving the Economic Union, the MGAA set up a Brexit committee. We have already held a number of events and information is available on our website. With the ever changing landscape we will now be sending mailshots highlighting important information as well as providing a monthly newsletter.

We will be hosting another Brexit Shape and Share session on 23 May, 2018 - details of this session will follow shortly.

PRA

On 28 March 2018 the Bank of England Deputy Governor, and the CEO of the PRA, Sam Woods, wrote a “Dear CEO” letter to regulated firms advising of an agreement between the UK and EU27 that there should be an implementation period, post April 2019, to end on the 31st December, 2020. Whilst this may be seen as good news it cannot be taken as a statement of agreement only the intention to agree. The UK will need to wait for the actual agreement from the EU to confirm this statement.

Transition Period

During this “Transition” period the UK will still expect there to be a high degree of supervision cooperation between the UK and the EU.

The UK government has committed to bringing forward legislation to ensure that current permissions enjoyed by passported in insurers, or third-country branches, will continue throughout this “transition” period. Consequently, this should mean that affected firms would only need PRA authorisation at the end of this transition period.

It is expected that such firms will be supported by PRA in relation to guidance on the timings of their applications together with ensuring such processes are run as smoothly as possible.

Lloyd's

Lloyd’s are in the process of setting up Lloyd’s Insurance Company, based in Brussels, and as of 1st January 2019 all EU risks written from the UK will need to be covered under this new stamp. Lloyd’s have issued a tool kit and we will issue details about this shortly.

Further information

Further information is on the MGAA website here . These documents are available for members to review and consider what actions, if any, their companies should be taking.