Market access

Does my business have the correct regulatory permissions to be able to sell insurance policies?

Intermediaries and insurers need to check whether their regulatory permissions allow them to place (and accept) any given risk.  It might be the case that following Brexit a UK intermediary is no longer permitted to perform distribution activities in respect of customers located in an EEA territory.

In recommendation 9, EIOPA has recommended that UK intermediaries and entities which intend to continue or commence distribution activities to EU27 policyholders and for EU27 risks after the UK’s withdrawal are established and registered in the EU27 in line with the relevant provisions of the IDD.  It also stated that all intermediaries carrying out distribution activities which target EU27 policyholders and EU27 risks fall under the scope of the IDD. This would appear to prevent UK intermediaries from conducting insurance distribution activities in relation to such insurance policies.  It is therefore important that intermediaries and insurers clarify what is required by local law and the expectations of relevant national regulators.

The British Insurance Brokers’ Association (BIBA) has reached an agreement with the Worldwide Broker Network (WBN) which will facilitate the introduction of BIBA member firms to one of their member firms in an EU state in order to enable them to continue to work with EU based clients. WBN has at least one member operating in each EU country, which have all been subject to rigorous due diligence, comply with all regulatory requirements, maintain E&O and other insurances to WBN standards and are English speaking.

The agreement is an arrangement between the two organisations to provide a route to BIBA members to introduce their EU clients to EU27 intermediaries in the absence of a trade agreement providing access to the single market.

Once the introductions are established neither BIBA nor WBN will play any further part.  It is for the two broking firms to agree scope of services and remuneration directly. It is also the responsibility of the two broking firms to confirm that they have the correct regulatory permissions.

 

Intermediaries and insurers need to check whether their regulatory permissions allow them to place (and accept) any given risk.  It might be the case that following Brexit a UK intermediary is no longer permitted to perform distribution activities in respect of risks located in an EEA territory.

In recommendation 9, EIOPA has recommended that UK intermediaries and entities which intend to continue or commence distribution activities to EU27 policyholders and for EU27 risks after the UK’s withdrawal are established and registered in the EU27 in line with the relevant provisions of the IDD.  It also stated that all intermediaries carrying out distribution activities which target EU27 policyholders and EU27 risks fall under the scope of the IDD. This would appear to prevent UK intermediaries from conducting insurance distribution activities in relation to such insurance policies.  It is therefore important that intermediaries and insurers clarify what is required by local law and the expectations of relevant national regulators.

The British Insurance Brokers’ Association (BIBA) has reached an agreement with the Worldwide Broker Network (WBN) which will facilitate the introduction of BIBA member firms to one of their member firms in an EU state in order to enable them to continue to work with EU based clients. WBN has at least one member operating in each EU country, which have all been subject to rigorous due diligence, comply with all regulatory requirements, maintain E&O and other insurances to WBN standards and are English speaking.

The agreement is an arrangement between the two organisations to provide a route to BIBA members to introduce their EU clients to EU27 intermediaries in the absence of a trade agreement providing access to the single market.

Once the introductions are established neither BIBA nor WBN will play any further part.  It is for the two broking firms to agree scope of services and remuneration directly. It is also the responsibility of the two broking firms to confirm that they have the correct regulatory permissions.

EU27 customer comes to the UK to ask me to place EU27 risks
Intermediaries and insurers need to check whether their regulatory permissions allow them to place (and accept) any given risk.  It might be the case that following Brexit a UK intermediary is no longer permitted to perform distribution activities in respect of risks located in an EEA territory.

In recommendation 9, EIOPA has recommended that UK intermediaries and entities which intend to continue or commence distribution activities to EU27 policyholders and for EU27 risks after the UK’s withdrawal are established and registered in the EU27 in line with the relevant provisions of the IDD.  It also stated that all intermediaries carrying out distribution activities which target EU27 policyholders and EU27 risks fall under the scope of the IDD. This would appear to prevent UK intermediaries from conducting insurance distribution activities in relation to such insurance policies.  It is therefore important that intermediaries and insurers clarify what is required by local law and the expectations of relevant national regulators.

The British Insurance Brokers’ Association (BIBA) has reached an agreement with the Worldwide Broker Network (WBN) which will facilitate the introduction of BIBA member firms to one of their member firms in an EU state in order to enable them to continue to work with EU based clients. WBN has at least one member operating in each EU country, which have all been subject to rigorous due diligence, comply with all regulatory requirements, maintain E&O and other insurances to WBN standards and are English speaking.

The agreement is an arrangement between the two organisations to provide a route to BIBA members to introduce their EU clients to EU27 intermediaries in the absence of a trade agreement providing access to the single market.

Once the introductions are established neither BIBA nor WBN will play any further part.  It is for the two broking firms to agree scope of services and remuneration directly. It is also the responsibility of the two broking firms to confirm that they have the correct regulatory permissions.

EU27 (producing) intermediary comes to the UK to ask me to place EU27 risks
Intermediaries and insurers need to check whether their regulatory permissions allow them to place (and accept) any given risk.  It might be the case that following Brexit a UK intermediary is no longer permitted to perform distribution activities in respect of risks located in an EEA territory.

In recommendation 9, EIOPA has recommended that UK intermediaries and entities which intend to continue or commence distribution activities to EU27 policyholders and for EU27 risks after the UK’s withdrawal are established and registered in the EU27 in line with the relevant provisions of the IDD.  It also stated that all intermediaries carrying out distribution activities which target EU27 policyholders and EU27 risks fall under the scope of the IDD. This would appear to prevent UK intermediaries from conducting insurance distribution activities in relation to such insurance policies.  It is therefore important that intermediaries and insurers clarify what is required by local law and the expectations of relevant national regulators.

The British Insurance Brokers’ Association (BIBA) has reached an agreement with the Worldwide Broker Network (WBN) which will facilitate the introduction of BIBA member firms to one of their member firms in an EU state in order to enable them to continue to work with EU based clients. WBN has at least one member operating in each EU country, which have all been subject to rigorous due diligence, comply with all regulatory requirements, maintain E&O and other insurances to WBN standards and are English speaking.

The agreement is an arrangement between the two organisations to provide a route to BIBA members to introduce their EU clients to EU27 intermediaries in the absence of a trade agreement providing access to the single market.

Once the introductions are established neither BIBA nor WBN will play any further part.  It is for the two broking firms to agree scope of services and remuneration directly. It is also the responsibility of the two broking firms to confirm that they have the correct regulatory permissions.

Gibraltar is a separate territory from the UK whose membership of the EEA is dependent on the UK’s membership.  Therefore Gibraltar would also leave the EEA in the event of a no deal Brexit.

UK intermediaries and UK insurers
The Financial Services and Markets Act 2000 (Gibraltar) Order 2001 controls the arrangements between Gibraltar and the UK for access to each other’s markets.  The UK has put forward legislation which amends the Gibraltar to preserve passporting arrangements between the UK and Gibraltar. The UK has unequivocally confirmed that the current access for Gibraltar financial services firms to access the UK market will continue post Brexit and Gibraltar has equally confirmed access for UK firms into Gibraltar.

EEA intermediaries and EEA insurers
Following Brexit, an EEA intermediary or an EEA insurer would no longer be able to rely on passporting rights to be able to cover risks located in Gibraltar or customers located in the UK.  Instead, they would be subject to the local laws and the expectations of relevant national regulators relating to market access by third country insurers and intermediaries.

To provide continuity and allow time to prepare for a smooth transition to the new regime, the UK Government has introduced a Temporary Permissions Regime.  This will allow EEA insurers and EEA intermediaries to continue operating in Gibraltar for a time-limited period. The regime will provide EEA authorised firms with sufficient time to apply for full authorisation from the Gibraltar Financial Services Commission.  More information on the Gibraltar Temporary Permissions Regime and Financial Services Contracts Provisions can be found on its website.

Gibraltar is a separate territory from the UK whose membership of the EEA is dependent on the UK’s membership.  Therefore Gibraltar would also leave the EEA in the event of a no deal Brexit.

UK intermediaries and UK insurers
The Financial Services and Markets Act 2000 (Gibraltar) Order 2001 controls the arrangements between Gibraltar and the UK for access to each other’s markets.  The UK has put forward legislation which amends the Gibraltar to preserve passporting arrangements between the UK and Gibraltar. The UK has unequivocally confirmed that the current access for Gibraltar financial services firms to access the UK market will continue post Brexit and Gibraltar has equally confirmed access for UK firms into Gibraltar.

EEA intermediaries and EEA insurers
Following Brexit, an EEA intermediary or an EEA insurer would no longer be able to rely on passporting rights to be able to cover risks located in Gibraltar or customers located in the UK.  Instead, they would be subject to the local laws and the expectations of relevant national regulators relating to market access by third country insurers and intermediaries.

To provide continuity and allow time to prepare for a smooth transition to the new regime, the UK Government has introduced a Temporary Permissions Regime.  This will allow EEA insurers and EEA intermediaries to continue operating in Gibraltar for a time-limited period. The regime will provide EEA authorised firms with sufficient time to apply for full authorisation from the Gibraltar Financial Services Commission.  More information on the Gibraltar Temporary Permissions Regime and Financial Services Contracts Provisions can be found on its website.

Gibraltar is a separate territory from the UK whose membership of the EEA is dependent on the UK’s membership.  Therefore Gibraltar would also leave the EEA in the event of a no deal Brexit.

UK intermediaries and UK insurers
The Financial Services and Markets Act 2000 (Gibraltar) Order 2001 controls the arrangements between Gibraltar and the UK for access to each other’s markets.  The UK has put forward legislation which amends the Gibraltar to preserve passporting arrangements between the UK and Gibraltar. The UK has unequivocally confirmed that the current access for Gibraltar financial services firms to access the UK market will continue post Brexit and Gibraltar has equally confirmed access for UK firms into Gibraltar.

EEA intermediaries and EEA insurers
Following Brexit, an EEA intermediary or an EEA insurer would no longer be able to rely on passporting rights to be able to cover risks located in Gibraltar or customers located in the UK.  Instead, they would be subject to the local laws and the expectations of relevant national regulators relating to market access by third country insurers and intermediaries.

To provide continuity and allow time to prepare for a smooth transition to the new regime, the UK Government has introduced a Temporary Permissions Regime.  This will allow EEA insurers and EEA intermediaries to continue operating in Gibraltar for a time-limited period. The regime will provide EEA authorised firms with sufficient time to apply for full authorisation from the Gibraltar Financial Services Commission.  More information on the Gibraltar Temporary Permissions Regime and Financial Services Contracts Provisions can be found on its website.

UK insurers, UK intermediaries and EEA firms accessing the UK market can check their current permissions on the FS Register.

Other registers can be found on the relevant firm’s home regulator’s website.

EEA countries consists of the EU member countries as well as the following countries Iceland, Liechtenstein and Norway.  A list of the 28 member countries (prior to Brexit) can be found here.