Insurance Europe has published a position paper calling for the ability of (re)insurers’ to service existing contracts issued on the basis of passporting before Brexit to continue to run post-Brexit. IE recommends ‘grandfathering’ as the best solution. It is concerned that the ability of EU and UK citizens to exercise rights under insurance contracts is dependent on a (re)insurer’s ability to service those contracts and legal and regulatory uncertainty could result in severe consumer detriment.
The paper acknowledges that (re)insurers passporting between the UK and the EU/EEA who try to continue to service existing contracts post -Brexit will no longer be authorised to do so. IE explains in the paper what ‘grandfathering’ would mean in practice recommends that the UK and EU agree to it as part of the Brexit negotiations.