Market access

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

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

In recommendation 9, of its ‘Recommendations for the insurance sector in light of the United Kingdom withdrawing from the European Union’, the European Insurance and Occupational Pensions Authority (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 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 someone to service 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.

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.

For further information please contact:

Warren Lai
AFL Insurance Brokers
0161 3250 265
07826 857 055
warren.lai@aflib.com

Jack Keilty
Price Forbes
0207 015 2760
07384 112432
JackKeilty@priceforbes.com

https://wbnglobal.com

Please see the where is the customer located section of this guide.

Please see the where is the customer located section of this guide.

EU27 customer comes to the UK to ask me to place EU27 risks

Please see the where is the customer located section of this guide.

 EU27 (producing) intermediary comes to the UK to ask me to place EU27 risks

Article 16 of the IDD states:

‘Member States shall ensure that, when using the services of the insurance, reinsurance or ancillary insurance intermediaries, insurance and reinsurance undertakings and intermediaries use the insurance and reinsurance distribution services only of registered insurance and reinsurance intermediaries or ancillary insurance intermediaries including those referred to in Article 1(3).’

This is held as preventing EEA producing intermediaries from using the services of UK placing intermediaries.

To address this issue, a number of UK intermediaries have established businesses within an EEA member state and have applied to the UK Financial Conduct Authority (FCA) under the UK’s Temporary Permissions Regime, for regulatory permissions for a UK branch of that EEA firm.

Gibraltar is a separate territory from the UK but whose membership of the EEA was dependent on the UK’s membership.  Therefore Gibraltar left the EEA when the UK did and EEA rules (including passporting) will no longer apply to Gibraltar following the end of the transition period as well.

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 passed legislation which amends the Gibraltar Order to preserve the current access for Gibraltar financial services firms to the UK market and Gibraltar has equally confirmed access for UK firms into Gibraltar.

Gibraltar is a separate territory from the UK but whose membership of the EEA was dependent on the UK’s membership.  Therefore Gibraltar left the EEA when the UK did.

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 passed legislation which amends the Gibraltar Order to preserve the current access for Gibraltar financial services firms to the UK market and Gibraltar has equally confirmed access for UK firms into Gibraltar.

Gibraltar is a separate territory from the UK whose membership of the EEA was dependent on the UK’s membership.  Therefore, Gibraltar left the EEA when the UK did and EEA rules (including passporting) will no longer apply to Gibraltar following the end of the transition period as well.

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 passed legislation which amends the Gibraltar Order to preserve the current access for Gibraltar financial services firms to the UK market and Gibraltar has equally confirmed access for UK firms into Gibraltar.

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 27 EU member countries as well as Iceland, Liechtenstein and Norway.  A list of the 27 EU member countries can be found here.