Brexit: what consequences on insurance regulation in Europe?

Magazine Issue:

The digital technology, a new battle field [3]

Magazine date:

Oct 2016

The Brexit effects on European countries are numerous. The insurance sector is not immune to those consequences with the first questions being asked at the level of regulations.

The Solvency II directive, criticized for its insufficient long-term financial sustainability with regard to insurance companies’ financial commitments, should be reviewed in two years’ time. But this deadline corresponds to the period of time that Great Britain has to enforce Article 50 of the European constitution which officially proclaims the country’s withdrawal from the Common Market. [4]

British insurers may, therefore, impact the amendment of Solvency II directive without being theoretically bound by compliance to it. However, if they are keen on maintaining the rights connected with the single passport scheme, they are required to comply with its regulations.

Read also:

Brexit, wave of uncertainty in the insurance sector [5]
2 758 companies operating in the insurance industry may lose their "European passport" [6]