WHAT BREXIT MEANS FOR INSURERS AND BROKERS IN THE UK, EU & EFTA REPORT BROCHURE

BREXIT AND iNSURANCE THE DEFINITIVE REPORT BY LEADING INSURANCE ANALYST IAN YOUNGMAN

iNSURANCE WITHOUT PASSPORTS

PROFESSIONAL BUSINESS INTELLIGENCE

WHAT BREXIT MEANS FOR INSURERS AND BROKERS OPERATING IN OR PLANNING TO OPERATE IN THE UK AND EUROPE. ON THE FRONT COVER: Our intrepid traveller voted yes for BREXIT yet having just opened an IPMI brokerage firm, what will he do now? Simple, he will purchase his own copy of the new BREXIT AND INSURANCE report so he fully understands what to expect and what his company needs to do.

REPORT CONTENTS 1 INSTITUTIONS United Kingdom European Union Background Current members Leaving members Candidate countries Turkey Potential Candidate countries European Neighbourhood Policy European Monetary Union Eurozone European Central Bank European Commission Overview Financial Stability, Financial Services and Capital Markets Union Council of the European Union European Parliament Court of Justice of the European Union European Free Trade Association European Economic Area Switzerland Switzerland and Brexit World Trade Organization European Investment Bank European Agencies Overview European Banking Authority European Medicines Agency 2 FREE TRADE AGREEMENTS European Union and the USA Free trade deal Insurance deal Internationally active insurers Trade in Services Agreement European Free Trade Association Agreements Bilateral Agreement between Switzerland and EU for non-life insurance 3 EU PRINCIPLES EU free movement Principles

Schengen Agreement Single Market Intellectual property Data protection Contracts Mergers and acquisitions Joint ventures 4 EU DIRECTIVES AND REGULATIONS Regulations, Directives and other acts Regulation Directive Decision Recommendation Opinion Third non-life insurance directive Third life insurance directive Financial Conglomerates Directive Solvency II Insurance Distribution Directive Motor Insurance Directive Motor Insurance Directive Vnuk amendments Winding-up of insurance undertakings Insurance guarantee schemes Insurance of natural and man made disasters Services Directive Competition law General Data Protection Regulation Other changing EU Directives 5 EU/EFTA CITIZENS Introduction UK insurance industry EU/EFTA nationals in the UK EU/EFTA nationals becoming UK permanent residents EU/EFTA nationals living in the UK UK nationals living in EU/EFTA countries UK nationals living in Spain Spain European Citizen Action Service EU view 6 EU TRAVEL EU overview Living and working abroad European Health Insurance Card

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BREXIT AND iNSURANCE THE DEFINITIVE REPORT BY IAN YOUNGMAN

WHAT BREXIT MEANS FOR INSURERS AND BROKERS OPERATING IN OR PLANNING TO OPERATE IN THE UK AND EUROPE.

4WITH 200 PAGES OF CRITICAL INSURANCE BUSINESS INTELLIGENCE, THIS NEW MARKET RESEARCH REPORT FROM LEADING INSURANCE ANALYST IAN YOUNGMAN LOOKS AT WHAT BREXIT MEANS FOR INSURERS AND BROKERS OPERATING IN OR PLANNING TO OPERATE IN THE UK AND EUROPE.

For those UK insurers, EU insurers, brokers and agents selling- or planning to sell- into the UK and/ or European markets; BREXIT is a legal and logistical nightmare.

UK regulators have demanded that every UK insurer now doing business in the EU/EFTA - whether

by passport or local subsidiary- and every EU/EFTA insurer doing business in the UK on a passport or full basis -must show them their contingency plan that covers all options including the nuclear one of a UK exit with no deals.

Much will depend on what is

negotiated -but do not believe the hype from either side. The core rule from the EU is very simplenon-members are not allowed to have deals equal to those that members have, and despite what British politicians may shout- that is non-negotiable.

REPORT CONTENTS European Health Insurance Card and the UK European Union Package Travel Directive Inbound travel Outbound travel Global figures on travel and tourism European figures on travel and tourism European Tourism- trends and prospects Economic impact of tourism sectors Opportunity for travel insurers 7 EU INSURANCE REGULATION European overview European Systemic Risk Board European Insurance and Occupational Pensions Authority International Association of Insurance Supervisors 8 UK INSURANCE REGULATION UK regulation overview Number of insurers Financial Services Act 2012 Bank of England Financial Policy Committee Prudential Regulation Authority Financial Conduct Authority FCA and Lloyd’s of London Corporation of Lloyd’s Types of intermediary Insurance brokers Independent financial advisers Agents Lloyd’s brokers UK brokers doing business in Europe Travel agents Banks Supermarkets Insurer-owned brokers 9 UK/EU PASSPORTING British insurers and brokers in the EU EU insurers and brokers in the UK Passporting NonEEA states Appointed representatives and tied agents Channel Islands and Isle of Man

Monaco San Marino Switzerland Gibraltar Risky firms Number of UK insurers passporting into the EU/EFTA Number of EU/EFTA insurers passporting into the UK Number of UK brokers passporting into the EU/EFTA Number of EU/EFTA brokers passporting into the UK Planning for the future 10 UK RESIGNATION Introduction The letter Devolved regions Scotland Wales Republic of Ireland and Northern Ireland Channel Islands and Isle of Man Department for Exiting the European Union 11 EU RESPONSE AND NEGOTIATION TIMETABLE After triggering Article 50 Article 50 What happens once Article 50 has been triggered?

How is the withdrawal agreement concluded?

So how long does that leave for the actual negotiations?

Who will negotiate for the European Union?

What about the practical side of the negotiations?

Where will negotiations take place?

They will take place in Brussels.

When does the UK cease to be a member of the European Union?

What happens meanwhile?

What happens if no agreement is reached?

Can the UK apply to re-join after it leaves?

Once triggered, can Article 50 be revoked?

What does Article 50 say?

Key negotiation areas EU and UK law EU negotiation guidelines April 2017 EU attitude April 2017 UK election Delays in negotiations EC reply to UK election Great Repeal Bill

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One of the anticipated losses resulting from the UK’s exit in 2019 is its exclusion from the single market, namely its exclusion from the free movement of goods, services and workers within the EU. This will impact insurance businesses in the UK that will lose their right of direct access to the single market, and EU insurers will lose their right of direct access to the UK. 40% of UK insurance businesses are studying alternative scenarios involving migrating their European business to other member states.

There will be two parallel but not identical sets of laws- in the UK and in the EU/EFTA countries. Any

UK insurer or broker doing business in the new EU/EFTA block will be subject to ALL the laws and rules in that region such as on solvency, insurance regulation and competitionplus the UK rules on solvency, insurance regulation and all other regulation that will diverge from EU rules.

In the UK the Bank of England and subsidiary insurance/financial regulators have confirmed that there will be no bonfire of regulations post-Brexit - while other regulators and bodes such as on competition and health and safety have made similar promises.

Insurance author Ian Youngman comments, “Wait and see is not

an option given the time that it will take to set up a regulated subsidiary within an EU member state or in the UK. If you rely in the main UK media for your Brexit information you could be in for a few surprises. My report is nonpolitical and takes information from across Europe-including primary sources. It is written in a non-technical way so that every insurer and broker can easily understand what is happening and why they must get ready for all possibilities- now, not 2018 or 2019.�

REPORT CONTENTS EU Court of Justice Deal or no deal Gibraltar Republic of Ireland Freedom of movement EU nationals in UK and UK nationals in Europe Respect EU negotiators Free Trade Insurance and finance Plan B NonEU/EFTA trade deals A phased approach UK Government’s negotiating objectives -April update Trade Post-Brexit scenarios.

Custom regulations under the new European order The rest of the world Incoming investment to the UK as a gateway to the EU Freedom of movement 12 UK INSURERS AND BROKERS WANTING TO DO BUSINESS IN EU/EFTA AFTER BREXIT Options Passporting rights Cross border transfers of business New subsidiaries Portfolio transfers Life and pensions Regulatory equivalence WTO rules on insurance 13 EU/EFTA INSURERS AND BROKERS WANTING TO DO BUSINESS IN UK AFTER BREXIT OVERVIEW NEW SUBSIDIARIES CURRENT PASSPORT HOLDERS FCA AND PRA FAST TRACKING 14 REGULATORS AND TRADE BODIES Association of British Insurers Association of British Travel Agents Association of Chartered Certified Accountants Bank of England Association of Insurance and Risk Managers

British Insurance Brokers Association Financial Conduct Authority Health Committee of Parliament International Group of Protection & Indemnity Clubs London Market Group International Monetary Fund Prudential Regulation Authority Treasury Committee of the House of Commons 15 LOCATIONS FOR UK FIRMS Where to base any EEA-passport firm Moore Stephens survey Colliers Internatiional report Belgium Cyprus Denmark France Germany Ireland Italy Luxembourg Malta Sweden 16 A TO Z OF UK/EU FIRMS PLANS Admiral AIG Aviva Axa Beazley Building Block Insurance Chesnara FM Mutual Hiscox Jardine Legal and General Lloyd’s of London Met Life Prudential Royal London RSA Standard Life Banks

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REPORT CONTENTS 17 GIBRALTAR

18 EU HEALTHCARE

History Background Brexit Gibraltar and EU Spain Insurance Passporting Regulation Enterprise Insurance UK/ Gibraltar deal Attractiveness UK insurers Future

Overview Cross border healthcare directive EU cross-border healthcare official EU patient information EU Cross border healthcare in EFTA countries EU Cross border healthcare and UK Brexit European Union cross border healthcare report KPMG study on the cross-border healthcare directive European Union cross-border healthcare rules on professional liability Health insurance in the EU Overview Working in one EU country and living in another Posted abroad on a short assignment of under 2 years Civil servants seconded abroad Students and researchers and trainees abroad Pensioners abroad•

HOW TO BUY THIS REPORT REPORT BREXIT & INSURANCE What BREXIT Means For Insurers And Brokers Operating In Or Planning To Operate In The UK And Europe

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iNTERNATIONAL AND EXPATRIATE HEALTHCARE AND iNSURANCE 2016©

For insurers, agencies, brokers and global companies, keeping up-to-date about the current and upcoming insurance law in overseas countries is almost impossible. That was, until now.

WRITTEN AND PRODUCED BY IAN YOUNGMAN