Brexit Update

December 2019 following the UK Election

On December 12, the UK overwhelmingly voted for the Conservative Party, and in doing so reelected Mr. Boris Johnson as Prime Minister. The ensuing new Parliament composition gives Mr. Johnson a significant majority, and it is now widely expected that he will be able to pass into law the Withdrawal Agreement negotiated in October 2019 which he specifically campaigned for.

This agreement would significantly lift the uncertainties surrounding our capacity to continue working with our continental European partners.

This Withdrawal Agreement includes a Transition Period (which the UK calls the Implementation Period). It is currently scheduled to last until 31 December 2020. This period contains two possible extensions of one year each, which are likely to be used considering the complexities of the trade arrangements which need to be negotiated.

During this Transition Period, the UK is still considered part of the EU Common Market and the passporting rights we enjoy today remain in full force. In turn, the UK regulators, including the GFSC in Gibraltar, continue to work under the guidance and in full coordination with EIOPA.

Therefore, assuming the Withdrawal Agreement is voted into law as expected following this election, we will have at least until 31 December 2020 before we risk losing our current passporting rights.

In parallel, we are working on a permanent solution which would allow us to operate fully from within the EU common market. We have advanced considerably on this topic and have agreed heads of terms to purchase a majority share in an EU insurer allowing us to continue writing business with our EU partners and service existing books from 2021 and beyond. This strategy would strengthen the group and would allow for further growth across Europe.

In the meantime, as always, existing policyholders’ rights remain unaffected and administration of the policies during the policy term remains unchanged. Policyholders should refer to the policy document for details on how to make a claim, a complaint or any other enquiry regarding their policy.

Questions or comments

If you have any questions or comments about our Brexit plans, please contact us at enquiries@cgice.com