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Jul 19, 2016

Brexit: Implications for the Insurance and Reinsurance Industry

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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

Authors and Contributors

Barnabas Reynolds

Partner

Financial Institutions Advisory & Financial Regulatory

+44 20 7655 5528

+44 20 7655 5528

London

Thomas Donegan

Partner

Financial Institutions Advisory & Financial Regulatory

+44 20 7655 5566

+44 20 7655 5566

London

William J. F. Roll, III

General Counsel

Litigation

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+1 212 848 4260

New York

Brian H. Polovoy

Partner

Litigation

+1 212 848 4703

+1 212 848 4703

New York

Reena Agrawal Sahni

Partner

Financial Institutions Advisory & Financial Regulatory

+1 212 848 7324

+1 212 848 7324

New York

Henry Weisburg

Partner

International Arbitration

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+1 212 848 4193

New York

Jo Rickard

Of Counsel

Litigation

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+44 20 7655 5781

London

Nicolas Bombrun

Partner

Mergers & Acquisitions

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+33 1 53 89 48 48

Paris

Domenico Fanuele

Partner

Capital Markets

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+39 06 697 679 210

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Rome

Thomas S. Martin

Of Counsel

Litigation

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Washington DC

Alessandro Salvador

Counsel

Litigation

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+39 02 00 64 15 31

Milan