With 9 days left for Brexit,
Nigel Feetham writes about Brexit contingency planning for U.K.
and Gibraltar insurers.
U.K. and Gibraltar insurers should now have implemented, or be
in the process of implementing their Brexit contingency plans.
There are five potential scenarios.
The first is a portfolio transfer of EU insurance liabilities to
an EU insurer (as transferee). This would then enable the U.K. or
Gibraltar insurer to focus on their U.K. (and international)
business whilst allowing existing EU policyholder claims to be paid
through the EU insurer. Of course, portfolio transfers are
expensive to execute (you have legal, regulatory, actuarial and
other business costs associated with the process such as newspaper
advertising and publicity requirements) and can take a substantial
amount of time to complete (due to regulatory and policyholder
consultation periods, together, in cases where court approval is
required, of obtaining the directions and sanctions
