Now that the Brexit transition period is over and a new trade deal has been agreed, what will happen to EU-related insurance?
25th January 2021
The UK formally left the EU at 11pm on 31 December 2020, and while the main treaty is agreed, there is still a lot of detail that the UK and EU need to sort out. One of the key issues that remains unresolved is the fact that the rules relating to financial services have not been finalised. Indeed, there is relatively little in the treaty about financial services at all.
How will post-Brexit arrangements impact insurance contracts?
We know that freedom of services, which allows UK insurance brokers to operate throughout the EU, has now ended, so there will need to be changes to the way EU policies are handled.
How will this affect your overseas insurance?
The new rules apply not just to the EU but to the European Economic Area (EEA) as well. So, if a given risk is located in the EEA, its insurance may need to be arranged by an EEA-authorised insurance broker. There are certain exceptions, of course, depending on the type of risk and other related issues. Please contact your CLEAR MPW account executive for further advice.
Does this mean that CLEAR MPW can no longer handle EEA-related insurance?
While Clear Insurance Management Ltd is not an authorised EEA insurance broker, we have forged a relationship with VLC & Partners to support our clients’ needs through 2021 and beyond. CLEAR MPW will be working closely with VLC & Partners to provide you and all our clients with an excellent level of service and to manage your EEA-related insurance requirements.
Who are VLC & Partners?
VLC & Partners are the largest independent insurance brokerage in the Netherlands and are well-respected in the insurance sector. They have broking facilities available throughout Europe and are well placed to advise you on EEA-related risks and support any claims that may arise.
Moreover, our partnership arrangement ensures that you can continue to bring your EEA-related insurance queries to us, and, where necessary, we will pass them on to VLC & Partners to undertake the requisite insurance distribution activities. CLEAR MPW will continue to maintain a proactive role in your insurance programme and will be available to attend meetings as before.
We hope to record a video interview with Stef Vermeulen, risk manager at VLC in the coming weeks to introduce himself and VLC & Partners to our clients and will, of course, be sharing this on our Twitter and LinkedIn channels.
Can you renew your EEA-related insurance policy with your existing insurer?
If you have an EEA-domiciled risk, you’ll likely be able to continue with your current insurance arrangements as most UK-based insurers have established separate EEA-domiciled companies.
Your CLEAR MPW account executive will advise you on this point closer to your policy renewal date, and whether you may need to consider alternative insurers.
Also, in the case of existing global insurance programmes that cover multiple countries, including those in the EEA, it may well be possible for these programmes to continue with “dual stamping” by the necessary insurers in order to underwrite the cover for the territories concerned.
Will the current state of limbo on financial services rules and EEA-related insurance change?
We are working hard to monitor the situation and will publish updates on our website and on social media as soon as we know more ourselves.
You’re hoping to drive your vehicle in the EU when COVID-related travel restrictions are relaxed. Do you need a green card?
Currently, to comply with EU-motor insurance requirements, you must carry an international certificate of insurance (also known as a green card) or its equivalent when driving your vehicle in an EU or EEA country.
Please allow your CLEAR MPW account executive enough time to obtain a green card for you from an insurer by making your request well in advance of your planned journey. This advice also applies to drivers of commercial motor vehicles.