With Brexit preparations across the insurance industry in top gear since last year, a sector expert highlights an exposure risk that is worth revisiting.
Brexit planning has been a fact of life for the global insurance sector since the UK referendum in 2016. However, an insurance expert from EY has flagged a post-Brexit risk for international insurers that deserves more attention.
Kabaria Bhattacharya, associate partner at EY, told Intelligent Insurer that most large outbound insurers operating in life insurance, property and casualty have been working on the assumption of a no-deal Brexit since March 31, 2019. “These insurers have already ensured they have the necessary permissions and licenses as well as setting up target operating models,” she said. And for inbound insurers there will still be time to fulfil their regulatory obligations after January 31, 2020. “Some firms may need to think about capital model changes and regulatory reporting, but these aren't immediate issues,” she added.
However, Bhattacharaya added that insurers with expatriate exposures may be at risk, “customers may have moved to somewhere in Europe potentially to retire and this could create an EU exposure for firms”.
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