Brexit & Financial Services: Insurance Distribution
Following the Brexit trade agreement which came into force on 1 January 2021, members of 3VB have written a series of notes, edited by David Simpson, considering the impact of the UK’s exit from the EU on the regulation of financial services in the UK. This note is authored by Robert Purves and looks at the effect of Brexit on the insurance and reinsurance industry.
The Insurance Distribution Directive (‘the IDD’) provides a passporting mechanism, pursuant to which ‘(re)insurance intermediaries established in an EEA State and registered with a competent authority in that State may do business in an EEA Host State, on either a freedom of services basis; or a freedom of establishment basis. As a result of Brexit, those passporting rights have now been lost by UK firms wishing to do business in an EEA state and by EEA firms wishing to do business in the UK. This note explores the options available to a UK (re)insurance intermediary that wishes to continue doing business in an EEA Member State and to an EEA (re)insurance intermediary that wishes to continue doing business in the UK. Read this note in full here.