12 UK or Gibraltar based insurance firms selling here have not sorted regulatory status post Brexit

Twelve insurance firms, which are based in the UK or Gibraltar but selling into Ireland, have still to sort out their regulatory status in the context of Brexit.

In response to a parliamentary question from Fianna Fáil’s Finance spokesperson Michael McGrath, Finance Minister Paschal Donohoe said there are currently 139 UK and 26 Gibraltar authorised insurance companies with “freedom of service notifications” into Ireland.

However, the Minister said that not all of these companies actually write business in Ireland.

Mr Donohoe said the Central Bank had told him that 64 UK insurance firms and 17 Gibraltar insurance firms currently have Irish policyholders.

Of these 81 companies, 12 to date have not established a presence and sought authorisation in Ireland or another EU country.

The Minister said he does not have information on the number of policyholders in those companies.

Mr Donohoe said the Central Bank is engaging with insurers and brokers on Brexit.

The Central Bank has instructed them to take “appropriate contingency measures” to ensure the continuity of services for cross-border insurance policies between the UK and other member states of the European Unon.

The companies were also told to inform their customers and beneficiaries of the implications of these contingency measures and to provide customers with clear information on the measures taken or planned and how they might affect policies.

“I understand that the Central Bank is also working closely with UK and European regulators to exchange information about firms’ plans and actions needed to address any consumer protection concerns,” the Minster said.

The Finance Minister also told Deputy McGrath that his department and the Central Bank are working closely to protect customers of insurance products in the event of a no deal Brexit.

He said that provisions in the Withdrawal of the UK from the European Union (Consequential Provisions) Act 2019 allow for a temporary run-off regime.

This will allow certain UK and Gibraltar insurers and brokers to continue to service existing insurance contracts with Irish policyholders in the event of a no deal Brexit, he added.

 

Credit: RTE.IE

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