Amendment To Insurance Contract Act In Relation To Brexit

The Act of 19 December 2020¹ implementing the Budget Act 2021 introduced into the Insurance Contract Act² a new provision to secure the outcome of insurance policies underwritten by UK insurers post-Brexit.

By amending Article 2 of the act,³ the legislature relieved any doubt as to the validity of insurance contracts in the event that:

• an EEA or third-country insurance undertaking loses its approval to carry out direct insurance operations in Luxembourg while retaining its authorisation in its home state; and
• a contract has been validly issued or renewed by an undertaking authorised to work in Luxembourg under the freedom of establishment or the freedom to provide services at the time of issue or renewal of the contract.