The Association of British Insurers (ABI) published an analysis of how EU legislation impacts on the U.K. insurance and long term savings industry after BREXIT.
The analysis, titled EU Exit: EU Legislation Mapping Exercise [1], identifies legislation that ranges from key consumer protections, such as the European Health Insurance Card and Data Protection regulations, to EU-wide prudential regulations like Solvency II.
The mapping exercise identified 80 “relevant” pieces of EU legislation, including EU directives that are transposed through UK Acts of Parliament. The analysis also includes EU regulations that apply directly to both industry sectors. Specifically:
- 52 regulations are transposed into UK Acts of Parliament
- 15 apply directly
- 12 are not in force yet (but are expected to be before 2019)
- 46 apply across both general insurance (GI) and long term savings (LTS): 30 apply specifically to GI and 5 specifically to LTS
While U.K. Prime Minister Theresa May has stated her government’s intention to enshrine all existing EU law into British law, there remains a much bigger challenge to decide which laws Parliament wants to retain in the longer term. According to ABI Director General Huw Evans, the 80 directives need to be “worked through” in order to “ensure a broadly consistent framework of customer rights, legal responsibilities and financial stability with European markets we will want to trade with.”
It should be noted that, while comprehensive, the analysis remains a work-in-progress and will be updated by the ABI as other impacts become known.
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