Italy - Brexit: recent development on Contractual Continuity in insurance sector

04 March 2019

On October 3, 2018 IVASS issued the attached letter to the market addressed to all the UK insurance undertakings pursuing business in Italy under the FoE and FoS regime, reminding them to duly inform the Italian insureds on Brexit impact in line with EIOPA Opinion dated June 25, 2018.
 
In particular, UK insurance undertakings are requested to:

  • duly inform Italian insureds and beneficiaries (actual and potential) on the impacts of their contingency plans for Brexit – also through their distributors – which, on their turn, are requested to
  • inform the actual and potential insureds;
  • timely send an adequate individual information on Brexit impact to their insureds and to beneficiaries in line with EIOPA Opinion;
  • timely publish said information on their website;
  • timely instruct the distribution network on the information to be supplied to the actual and potential insureds.
Confirmation on the delivery of this information and on the adoption of said initiatives should have had to be communicated by the UK insurance undertakings to IVASS by November 30, 2018.
 
IVASS has also prepared a webpage addressed to consumers to inform them on Brexit impact.
 
In addition to the above, on January 24, 2019, the Italian Ministry of Economy and Finance has published a press release (N° 15 of 01/24/2019) informing that it has drawn up (in collaboration with the relevant Regulators) the measures necessary for ensuring the full continuity of the regulated markets (banking, insurance and intermediaries sectors) in the event of hard Brexit. However, said measures have not been issued yet since the plan is to publish them on around the Withdrawal Date even in the form of urgent decree.
 
According to the rumours, the decree should provide for a 21-month interim period (i.e. up to the December 2020) with a set of rules aimed at ensuring the continuity of the business of the UK operators in the Italian market.
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Agency Database

Future Dates

* Estimated date

  • 31 December 2019

    Following PRA's policy statement (PS10/17) - operational continuity firms are expected to submit the template (PRA109) 45 business days after the first reporting period ending 31 December.

  • *2020

    The date by which all references to CRA ratings in laws and regulations relating to banks are to be removed. This will be done by the Commission based on technical advice from ESMA. EIOPA will be responsible for implementation.

  • *31 December 2020

    End of Brexit transition period