Brexit and the Impact on BrokersApril 2021
Insurance intermediaries in the EU including Ireland must only use insurance and re insurance services of other EU registered firms.
Under the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2019, UK insurers and intermediaries that do not wish to be established in Ireland or other EU member state, will be provided with a run-off regime. This will allow them to continue to fulfil contractual obligations to their Irish customers for a three-year timeframe after the transition period ends. After this, they will not be able to write new insurance contracts or renew existing ones.
For Irish intermediaries that have UK clients, the intermediaries need to have registered with the Financial Conduct Authority’s (FCA) UK Temporary Permissions regime (TPR) while they proceed with a full application to the FCA. If Irish intermediaries do not wish to get authorised by the FCA they are subject to the Financial Service Contracts Regime (FSCR). This regime allows that contracts written pre 31.12.2020 can continue to be serviced but no new business can be written.
It is vital that all intermediaries ensure that they deal with insurance undertakings and firms that have the correct authorisations on place to cover risks for their policyholders wherever they are based.