• Home
  • Articles
  • Brexit and the insurance sector - inform customers about Brexit's impact on insurance contracts

Brexit and the insurance sector - inform customers about Brexit's impact on insurance contracts

10/09/2018

Download PDF
Related topics: Banking and financeBrexitInsurance
  • Insurance contracts – All cross-border insurance contracts between the UK and the European Union are affected. This includes contracts that terminate before the Brexit date, but for which open claims exist or might be reported thereafter;
  • Information to customers – Insurance undertakings and insurance intermediaries should in good time provide their customers with clear and non-misleading information on the Brexit measures taken or planned and their impact on their insurance contracts. Even if no measures are taken, customers should be informed of the reason for not taking measures. Customers should be made aware of possible impacts, such as: change of the contractual counterparty following a transfer of insurance contracts to another insurance undertaking; changes to the claims management procedure or to other customer services; tax implications of insurance contracts (e.g. insurance premium tax following the relocation of an entity to another jurisdiction); and change of the law applicable to the insurance contract.
  • Information to distributors – Insurance undertakings should also provide this information to their distribution channels to enable them to inform their customers accordingly.

Compliance with this information obligation by the insurance undertakings and the insurance intermediaries will be monitored by EIOPA and the national authorities.

 

Key contact