Even in the scenario of a full exit, assuming relevant equivalency decisions are taken by EU authorities for the UK, cross-border reinsurance should generally remain unaffected. Direct insurance businesses should in principle be able to benefit from certain equivalency arrangements as regards group solvency calculations and group supervision requirements, but would not have access to customers in the single market unless they establish a local branch or subsidiary. Insurance sales, mediation and distribution have no third-country access or equivalence regimes, and so UK insurance sales firms will become subject to the national regimes of EU states when marketing there. Were the UK to remain in the EEA, all current passporting rights should be preserved. Insurance businesses in the UK and EU should consider the impact of Brexit and some of the potential structuring solutions discussed in this note.
View full memo, Brexit: Implications for the Insurance and Reinsurance Industry