Government has legislated to ensure that all UK insurance policies with EU insurance companies can continue to be serviced by those EU companies after Brexit.
We have introduced legislation for a Temporary Permissions Regime for EEA firms currently passporting into the UK to continue operations in the UK for a time-limited period while they apply for full UK authorisation.
Government has also legislated for a Financial Services Contracts Regime, allowing for the orderly wind down of the UK regulated activities of remaining firms who do not enter the TPR, those whose applications for full UK authorisation are not successful, and those that do not apply for it.
This action has largely mitigated the potential impacts on policyholders. This is reflected in the Bank of England’s Financial Stability Report, which describes a ‘low risk’ of disruption.