Insurance Europe has published a position paper on the consequences of Brexit on existing insurance contracts. The paper discusses:
- existing (re)insurance contracts that may be affected by Brexit and how customers may be affected;
- what is currently permitted by passporting rights;
- when grandfathering is the only solution for existing contracts; and
- how to allow for the continuation of existing contracts.
Insurance Europe advocates for a grandfathering arrangement for long-term (re)insurance contracts in circumstances where a transfer of portfolio is not possible or is excessively costly for consumers.