Chubb European Group and ACE Europe Life are currently authorised in the UK. As the UK is part of the EU single market this allows these entities to operate in all EEA countries under its UK passports without requiring separate European insurance companies.
After Brexit, it is uncertain that the UK will continue to have access to the European market and unlikely that the UK will be able to passport into the EEA. This means that CEG and AEL will no longer be able to undertake regulated activities in the EEA without obtaining EEA permissions. Our assumption (subject to any agreement being reached or transitional arrangements being put into place) is that the UK will also not allow EEA insurers to operate in the UK under EEA permissions.
The UK 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.
Chubb’s Brexit contingency plan is intended to allow Chubb to (i) continue writing business following Brexit in all of the territories it currently operates in; and (ii) administer existing business, in each case in the event that the UK leaves the EU without any arrangements on passporting being agreed.