Q&As

Brexit—what are the passporting and equivalence implications for the UK insurance sector?

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Produced in partnership with Clare Swirski, corporate insurance partner and Amera Dooley, PSL of Clifford Chance
Published on LexisPSL on 22/09/2016

The following Financial Services Q&A produced in partnership with Clare Swirski, corporate insurance partner and Amera Dooley, PSL of Clifford Chance provides comprehensive and up to date legal information covering:

  • Brexit—what are the passporting and equivalence implications for the UK insurance sector?
  • What are the main aspects of passporting under Solvency II?
  • What are the passporting implications of Brexit?
  • Will a finding of equivalence for UK regulation assist if the UK becomes a third country?
  • What options are open to insurers if their UK passport becomes ineffective?
  • Could the UK implement fast-track authorisations?
  • What are the effects if the UK becomes a 'third country'?
  • How are equivalence decisions obtained?
  • Could the equivalence framework be extended?
  • What forward planning should insurers be undertaking?
  • More...

Brexit—what are the passporting and equivalence implications for the UK insurance sector?

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

This Q&A considers the impact of Brexit on passporting in the insurance sector, what options are available to insurers to continue to access the European Economic Areas (EEA) and the factors for insurers to take into account in their contingency planning. This Q&A is produced in partnership with Clare Swirski at Clifford Chance.

What are the main aspects of passporting under Solvency II?

The activity of providing insurance on a cross-border basis within the EEA is described as 'passporting' and, under Solvency II, a (re)insurance undertaking authorised in one Member State can provide (re)insurance into another Member State either by:

  1. providing services only (ie with no permanent physical presence in the EEA state)—a right provided by Article 56 TEFU

  2. setting up an establishment there, usually described as a 'branch'—a right provided under Article 49 TEFU

A (re)insurance undertaking that has 'passported' by one of

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