Problems caused for Insurers by Brexit – and their Solutions

David Kendall | David Young (Cooley (UK) LLP, London) |

Whilst it remains the case that the UK Government and the EU Commission are engaged in an ongoing series of negotiations with regard to the terms upon which the United Kingdom will exit the European Union on 29 March 2019 (Brexit), the apparent lack of progress and number of stumbling blocks that have arisen during the course of these negotiations has given cause for concern that no deal will be reached between the parties.

Currently, insurers authorised in the UK may underwrite business in the other EU Member States in reliance on their UK authorisation (and, reciprocally, EU insurers may conduct business within the UK in reliance on their home state authorisations). This set of rights is known as “passporting”. In the event that no agreement is reached as to the regulatory status of UK insurers following Brexit, these passporting rights