Brexit

Brexit FAQs - how it could affect you

What does Chubb’s (CEG and AEG) recent conversion to Societas Europaea (SE) mean for me?

Will it affect my policy?

Our conversion to a SE will have no effect on the existing coverage or the duration of your policy or policies

UK Customers of AEL and CEL - Will I still have access to the UK's Financial Ombudsman Service ("FOS")?

Yes. This has been an important part of our planning. UK customers of CEG and AEL will continue to be able to bring complaints to the FOS after the companies have changed their place of registration to France.  In these FAQs we have referred to this change of place of registration as “redomicile”.
 

  • Before the companies redomicile to France UK customers of CEG and AEL will automatically continue to have access to the FOS.   
  • After the companies redomicile to France but prior to Brexit, UK customers will continue to have access to the FOS because CEG and AEL will do business in the UK through its UK branch.
  • If a Brexit "transition period" is agreed between the UK and the EU, we expect the current regulatory rules to continue to apply during that period – so that UK customers continue to have access to the FOS.
  • If no "transition period" is agreed, the UK regulators have proposed to give EU insurers permission to carry on regulated activities in the UK on a temporary basis. We expect this to mean that the FOS regime will continue to apply to UK customers of CEG and AEL during this period.
  • Although the final terms of the Brexit deal between the UK and EU are uncertain, we expect that after Brexit, the automatic availability of the FOS regime for UK customers will continue.  However, should that not be the case, both CEG and AEL will voluntarily submit to the jurisdiction of the FOS to ensure UK customers will continue to be able to bring complaints to the FOS after Brexit regardless of any political agreement reached.
UK Customers of AEL and CEL - Will I still have access to the UK's Financial Services Compensation Scheme ("FSCS")?

(The FSCS protects customers when authorised financial services firms (such as CEG and AEL) fail. More information about the FSCS is available at https://www.fscs.org.uk/).

  • UK customers of CEG and AEL will retain access to the FSCS until the companies redomicile to France.   
  • After CEG and AEL redomicile to France but prior to Brexit, UK customers will lose access to the FSCS and will instead benefit from the protection of the French deposit guarantee scheme, the Fonds de garantie des assurés contre la défaillance de sociétés d'assurance de personnes (the "FGAP"). 
  • Although the FSCS and FGAP are not identical, both are designed to protect customers from the unlikely event of insolvency. Accordingly, any impact on UK policyholders during this interim period will be minimal as:
    • The risk of insolvency on the part of CEG and AEL is extremely remote. Both CEG and AEL are strongly capitalised and will continue to maintain a strong solvency position.
    • Although the scope of the FGAP is not as extensive as the FSCS, the FGAP provides some of the same cover as the FSCS.  
  • Post Brexit, Chubb intends to open a branch of each of CEG and AEL in the United Kingdom that will have permission to carry on regulated activities in the UK. The FSCS regime will be applicable to UK customers of these branches.
EU Customers of AEL and CEL - Will I still have access to the UK's Financial Ombudsman Service ("FOS")?
  • EU customers (excluding UK customers) whose business was written from a branch in the UK will have access to the FOS regime in respect of activities taking place before CEG and AEL redomicile to France. After CEG and AEL redomicile to France, EU customers will have access to the French complaints regime instead of the FOS.
     
  • EU customers whose business was written by one of CEG or AEL’s branches outside the UK (i.e. such as France or Italy, for example) are not currently eligible to make complaints to the FOS as they have access to their local complaints regime. This will not change after CEG/AEL redomicile to France.
EU Customers of AEL and CEL - Will I still have access to the UK's Financial Services Compensation Scheme ("FSCS")?
  • EU customers of CEG and AEL will have access to the FSCS until the companies redomicile to France.
  • After redomicile, EU customers will have access to the French deposit guarantee scheme, the Fonds de garantie des assurés contre la défaillance de sociétés d'assurance de personnes (the "FGAP").  Although the scope of the FGAP is not as extensive as the FSCS, the FGAP provides some of the same cover as the FSCS.  The risk of insolvency on the part of CEG and AEL is extremely remote.
Will my premium(s) change?

Our conversion to a SE will have no effect on the amount of your premium(s).

Will there be any costs to me associated with this change?

You will not incur any costs as a result of our conversion to a SE.

Will this change my terms and conditions?

There may be some changes to your terms and conditions which we will inform you about in due course.

Will it change how I contact you?

There is no change to your current contact name or contact numbers. Please continue to contact us in the usual way. There may be changes to some numbers in due course, but we will advise you if this is the case in good time.

If I have made a claim, does the conversion to a SE affect my claim?

Our conversion to a SE will have no effect on any claims which have been made or may be made under your policy.

Will this affect any claim I may have in the future?

Our conversion to a SE will have no effect on any claims which have been made or may be made under your policy.

How will I be affected by Chubb's Brexit planning?

Why have I received an Important Notice with my policy documents?

You may have received an Important Notice from Chubb, one of our partners, or your broker. The Important Notice was to advise you that we are planning for Brexit and consequently there are likely to be some changes to the corporate structures of our companies. This website is the best place to find up to date information about our Brexit planning.

I didn’t know I had any cover with you?

You may have insurance cover provided by Chubb though a broker or an organisation that have chosen to place their business with us. If you are unsure about your cover please contact your broker. We are required to make you aware of any changes taking place.

I forgot I had cover, what do I need to do?

You don’t need to do anything. Our Brexit changes will have no effect on the duration of your policy or policies.

What am I covered for?

To find out the details of your policy you will need to speak to the appropriate team – please refer to your policy and then call the telephone number included, or use the contact us telephone numbers included on Chubb.com.

Will it affect my policy I have with you?

Our Brexit changes will have no effect on the terms and conditions of your cover or the duration of your policy or policies.

Will my premium(s) change?

Our Brexit changes will have no effect on the amount of your premium(s).

Will there be any costs to me associated with this change?

You will not incur any costs as a result of the Brexit changes.

Will this change my terms and conditions?

No. Our Brexit changes will have no effect on your terms and conditions.

Will it change how I contact you?

There is no change to your current contact name or contact numbers. Please continue to contact us in the usual way. There may be changes to some numbers in due course, but we will advise you if this is the case in good time.

If I have made a claim, does the conversion to an SE affect my claim?

Our conversion to SE will have no effect on any claims which have been made or may be made under your policy.

Will this affect any claim I may have in the future?

Our Brexit changes will have no effect on any claims which have been made or may be made under your policy.

How is Chubb changing under Brexit?

What is changing under Brexit?

Until 31 December 2018, Chubb European Group SE and ACE Europe Life SE will still be domiciled and have their registered office at the same address in England and will remain authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Chubb European Group SE and ACE Europe Life SE will re-domicile to France on 1 January 2019. This is subject to Chubb fulfilling certain administrative requirements by the end of 2018.

From 1 January, 2019, the new registered address for Chubb European Group SE and ACE Europe Life SE will be La Tour Carpe Diem, 31 Place des Corolles, Esplanade Nord, 92400 Courbevoie, France. 

From 1 January, 2019, Chubb European Group SE and ACE Europe Life SE will be supervised by the ACPR, 4 Place de Budapest, CS 92459, 75436 PARIS CEDEX 09 and operate in the UK – initially at least – as an EEA branch.

An SE is a public company registered under EU corporate law and formed in accordance with the law of the Member State in which it has its registered office. SE status enables Chubb European Group and ACE Europe Life to redomicile to another EU jurisdiction – France – and continue to undertake business both around the EU and into the UK.

Customers will benefit from continuing to receive insurance cover from the same legal entity with the same level of capital. In addition there will be no change to the level of customer service.

Specifically, for UK customers this means contract certainty and certainty of insurance cover. The French companies will operate in the UK under passporting rules until Brexit or expiry of any transition period. After that time and if required, Chubb intends to seek authorisation of the branches of its French companies in the UK. In the event of a ‘Hard Brexit’ where no transition period is agreed between the UK and EU, Chubb’s UK branches will benefit from the UK government’s temporary permissions regime. This regime will enable firms like Chubb to undertake new business within the scope of their permission, enable them to continue performing their contractual rights and obligations, manage existing business and mitigate risks associated with a sudden loss of permission.

For customers based in the EU there will also be no disruption as the French authorised business for Chubb European Group SE and ACE Europe Life SE will be able to passport across the EU. This means there will be no complicated portfolio transfers or changes in insurers which might otherwise be experienced.

We anticipate that these changes will allow us to continue to benefit from the S&P “AA” rating assigned to core operating companies within the Chubb Group.

How will this affect me?

From the outset, our primary aim has been to ensure a seamless transition and to offer certainty and continuity of service for all our customers and our business partners, regardless of location or the final outcome of the Brexit negotiations.

Specifically, for UK customers this means contract certainty and certainty of insurance cover. The French companies will operate in the UK under passporting rules until Brexit or expiry of any transition period. After that time and if required, Chubb intends to seek authorisation of the branches of its French companies in the UK. In the event of a ‘Hard Brexit’ where no transition period is agreed between the UK and EU, Chubb’s UK branches will benefit from the UK government’s temporary permissions regime. This regime will enable firms like Chubb to undertake new business within the scope of their permission, enable them to continue performing their contractual rights and obligations, manage existing business and mitigate risks associated with a sudden loss of permission.

For customers based in the EU there will also be no disruption as the French authorised business for Chubb European Group SE and ACE Europe Life SE will be able to passport across the EU. This means there will be no complicated portfolio transfers or changes in insurers which might otherwise be experienced.

Why are you doing this?

The UK Government served a notice under Article 50 in March 2017 which kick-started a minimum two-year period for negotiations and Brexit is due to take place on 29 March 2019. Recently the UK and the EU have agreed transitional arrangements that will allow UK insurers to operate in EU countries, and for EU insurers to continue to operate in the UK until the end of 2020. Without such transitional arrangements, like many insurers and financial services firms, Chubb European Group (CEG) and ACE Europe Life (AEL) would no longer be able to undertake regulated activities in the EEA without obtaining EEA permissions.

CEG and AEL are currently authorised in the UK. Chubb’s Brexit plans are designed to ensure it can continue to provide its products and services to its UK and EU customers.

Chubb’s Brexit plan will ensure that Chubb can continue to carry out business in all the countries we operate in now.