Brokering after Brexit
The UK left the EU on 31st January 2020 subject to agreeing an 11-month transition period that keeps the UK bound to EU rules. When the transition period ends on 31st December 2020, there may be some changes to the way UK brokers are able to handle EEA based customers.
What does this mean for UK brokers and how they provide services to their clients who reside in the EEA?
As FCA-authorised firms, UK brokers are currently very likely permitted to arrange insurance policies for their EU customers because of so-called ‘passporting rights’ which exist between the UK and the rest of the EU. At the end of the transition period, the UK will no longer be part of the EU and passporting rights are unlikely to be available.
As a precaution, we recommend that UK brokers review their customer base to identify whether any issues would arise for them as a result of the end of the transition period.
Our Brexit Solution
At Intasure, we provide Holiday Home insurance across 40+ countries as well as extensive Second property/Landlord insurance, with the end of the transition period just around the corner we have taken steps which will allow us to continue to provide services to our EU customers.
The interpretation of what constitutes an EU customer may vary from firm to firm, but Intasure has taken the position that any customers resident in the EEA will need to be provided with services through a company in the EU. As such, Intasure are providing services for our own customers located in the EU from another Gallagher company in the EU, Nordic Försäkring & Riskhantering AB (“Nordic, trading as Intasure”), which is authorised as an insurance broker in Sweden by the Swedish regulator, the Finansinspektionen.
How we can help you
If you are a UK broker and do not have a solution to deal with EU customers following the end of the transition period, Intasure would be happy to discuss alternative placement arrangements with you.
To discuss in further detail how this would work and what we can offer please call 01892 239372
*The opinions and views expressed in the above articles are those of the author only and are for guidance purposes only. The authors disclaim any liability for reliance upon those opinions and would encourage readers to rely upon more than one source before making a decision based on the information.
Ref: FP1510 – 2020