Financial Services Ireland

Brexit for insurance: implications and options for life and pension firms

Read more

With limited time left before Britain formally leaves the EU in March 2019, businesses of all kinds are grappling with political and regulatory uncertainty.

For life and pension firms, Brexit poses unique challenges. Key issues for the sector include the long-term nature of the business, the mobility of people, uncertainty over key regulatory concepts and the changes to the geographical perimeter of the single market.

Our latest EY report outlines the key Brexit-related issues for life and pension firms. It discusses some of the options that may be available, and the capital, tax, people and regulatory implications of those options.

Three key takeaways from the report are:

  • Life and pensions firms must be prepared to tackle the unique challenges that Brexit poses for the industry. Many L&P firms have undertaken contingency planning and are focusing on implementation. However, some firms have yet to start. Are you ready, and do you have a plan in place?
  • There are three key areas L&P firms need to focus on: the extent of existing passporting; migratory policyholders; and financial market exposures. This is laid against uncertain timelines, including the extent of any transition arrangements. How will you manage the potential disruption to your business?
  • There are a number of potential options that will enable life insurers to continue to service EU policies. Do you know which contingency plan would best suit your needs – and do you understand all the tax, regulatory and people issues relating to that plan?

Explore our latest analysis and, if you have a question, please do get in touch.