Brexit update for our members
Posted on February 21, 2019
A quick note for our members who have opened a policy whilst living in the UK and are now living overseas or those thinking of moving abroad. You may be worried about the impact of a no-deal Brexit on your policy. The FCA’s stance is to minimise detriment to policyholders - the same rules and laws will apply after exit as before, as far as possible for a transitional period. The EIOPA (EU insurance & pensions regulatory body) has also now issued a paper stating that members who took out policies whilst living in the UK and who subsequently move to an EU state should not be treated as having concluded the contract in the UK and should be deemed to not be performing any cross-border transactions as a result, meaning that the policy can be retained. The concern for some was that policies would need to be surrendered by those living outside the UK, but fortunately this should not be the case.
As mentioned, the above applies in the case of a no-deal Brexit but we’ll keep monitoring negotiations prior to the UK leave date of 29 March 2019. Based on current draft legislation and correct at date of blog post.