The Washington, D.C.-based National Bureau of Economic Research (NBER) in September 2019 published a working paper, The Impact of Brexit on UK Firms, authored by Nicholas Bloom, Philip Bunn, Scarlet Chen, Paul Mizen, Pawel Smietanka, and Gregory Thwaites. The authors identify three key results from a survey of UK firms, the Decision Maker Panel. According to the abstract of the 59-page article: “First, the UK’s decision to leave the
The UK government in April 2019 published practical guidance on social security contributions for UK and EU internationally-mobile workers in the event that the UK leaves the EU without a deal. This guidance also includes actions UK employers would need to take for outbound employees to the EU. This follows draft legislation published in December 2018 by the Department of Work and Pensions (DWP) regarding the UK’s proposals to
According to information prepared by Deloitte UK in April 2019, the UK government has published practical guidance on the social security contributions position for UK and EU internationally mobile workers if the UK leaves the EU without a deal and actions UK employers would then need to take for UK outbound assignees to the EU. This follows on from draft legislation published by the Department of Work and Pensions
It may sound as if the journalist corps in April 2019 successfully plotted to keep the never-ending story alive, but the fact is, the Brexit saga has been given a new lease of life on the eve of one of its many potential endings. That particular ending would have been an unhappy one, but still who cares… So, what does the new episode look like? Well, the updated decision
With the United Kingdom’s departure from the European Union delayed until May 22, 2019, if the Brexit deal is accepted, or April 12, 2019, if rejected, many clients of the insurance industry are unsure of what to do in either case. Lockton in March 2019 released an advisory: Brexit update: What US multinational employers need to know to help its clients and others in the industry during these
Insurance Europe in March 2019 published a checklist regarding the insurance implications of a no-deal Brexit. Insurance Europe is the European insurance and reinsurance federation, representing all types of insurance and reinsurance carriers. Intended for the general public but relevant for business travelers and short-term secondments, the checklist deals with: Motor insurance – Currently, motorists insured in any EU member state can drive their vehicle in any other EU member
A London judge in February 2019 ruled that a European Union agency, the European Medicines Agency (EMA), could not use Brexit to break its lease. The EMA is moving its 900-people headquarters to Amsterdam, The Netherlands as a direct result of Brexit. It has a 25-year lease for 10 floors in a building in London’s Eastern financial district, Canary Wharf, with 21 years to run. The European agency pays
France in February 2019 published transitional (or emergency) measures related to insurance in case of a no-deal Brexit. As per the new rules, contracts may not be amended if additional premiums are collected renewals, including automatic renewals are not allowed payment of claims will not be considered a breach for at least the first 12 months The new rules apply to contracts covering French risks and entered into before
In mid-January 2019 the UK Parliament rejected the proposed European Union (EU)-UK agreement that provided for a more or less orderly Brexit. Two months ahead of the deadline, the British government is expected to further push for an approval of the agreement, but a disorderly separation may now be the most likely scenario. Accordingly, EU nations are getting ready to minimize expected disruptions. The European Commission, in December 2019, published
Global Benefits Vision: Now that Brexit seems to be upon us, let’s talk about how you see it impacting Lockton and the insurance world in general. Ian Cooper: It has been quite fascinating. Insurance providers, as we know, within the single market, can passport regulatory permissions and trade across Europe.
Replicating an earlier deal in 2017 between the European Union (E.U.) and the United States (U.S.), the latter in January 2019 signed a “covered agreement” with the United Kingdom (UK) that protects their respective international insurers and reinsurers when doing business with each other. The new covered agreement basically provides for a limited but very useful form of mutual recognition of reinsurance companies and of (re)insurance regulators. The existing
Lloyd’s in October 2018 confirmed it will be able to write facultative and excess of loss treaty reinsurance on Lloyd’s Brussels paper from January 1, 2019 across all markets in the European Economic Area (EEA). Should the UK not secure Solvency II reinsurance equivalence in 2019, Lloyd’s will be ready to process proportional treaty reinsurance business through Lloyd’s Brussels from January 1, 2020. In any event, the market said
AIG in October 2018 received approval from British courts for its European subsidiary, AIG Europe Limited (AEL) to transfer its business into two new entities: American International Group UK Limited (AIG UK), based in London, UK, and AIG Europe SA (AESA) in preparation for Brexit. AESA’s headquarters are in Luxembourg City, Luxembourg, and has 21 branches across the European Economic Area and Switzerland. It is led by Christophe Nicolas
Ahead of Brexit, London-based Prudential in August 2018 announced the reorganization of its long-term non-UK European operations. Currently, Prudential’s European operations are split across The Prudential Assurance Company (PAC), based in the UK, and Prudential International Assurance (PIA), based in Ireland. Going forward, all long-term European business, excluding the UK, will be written by PIA. This includes today’s PAC Poland, PAC France, PAC Malta, and PAC’s branches in Germany
Insurer – Country of Destination – Date Announced – Source MS Amlin – Brussels – 28 June 2017 – Press release Lloyd’s of London – Brussels – QBE – Brussels – CNA Hardy – Luxembourg – RSA – Luxembourg – AIG – Luxembourg – FM Global – Luxembourg – Hiscox – Luxembourg – Liberty Mutual, Special Markets – Luxembourg – Admiral – Dublin – Beazley – Dublin – Chesnara –
The UK’s Home Office in August 2018 unveiled a package of briefing packs, posters and leaflets, the “EU Settlement Scheme: employer toolkit” to help staff from the EU to register for a new immigration status that will be legally required after Brexit. An estimated 3.5 million to 3.8 million EU citizens live and work in the UK. Among the employers and groups present at the launch were the British
AIG in August 2018 announced the appointment of Thomas Lillelund as CEO of AIG Europe, based in Luxembourg and reporting to Chris Townsend, CEO, International General Insurance. He will be responsible for Continental Europe and Ireland. Anthony Baldwin, now CEO of AIG Europe Limited, will become CEO of AIG’s new UK entity, American International Group UK Limited, and will continue to report to Townsend. Headquartered in Luxembourg, AIG Europe
CNA Hardy, a commercial insurer operating within the Lloyd’s market, in August 2018 was granted its insurance license by the Luxembourg regulator, Commissariat aux Assurances (CAA). It is to write business across continental Europe from Luxembourg through a network of offices in Belgium, Denmark, France, Germany, Italy, the Netherlands, but also through its Lloyd’s of London platform. The company had announced in June of 2017 that it would set
Chubb Europe announced in July 2018 that it has chosen the Societas Europaea (SE) legal entity form for its future Continental European operations. Societas Europaea is Latin for “European company.” Brexit prompted Chubb to move its European businesses from London to France in September 2017. The firm chose to become an SE legal entity rather than a “société anonyme”, or joint stock company, with its headquarters in France. This gives
The setup of a business in Luxembourg will result in the migration of employees from the United Kingdom. This will be cause for changes in their professional and personal lives, such as new remuneration packages, changes in employment contracts, tax and social security, family assistance plans for housing, school, etc. Using the Brexit model as an example, we can explain what happens in terms of social security and occupational pension schemes for employees (not all of whom are from the UK) who are migrating to Luxembourg.
RSA Insurance Group in June 2018 said it received regulatory approval for its new insurance subsidiary in Luxembourg from the Commissariat aux Assurances (CAA). RSA, a P/C carrier, previously operated outside of the UK by way of an EU branch, focusing on large commercial clients. It writes approximately £350m in GWP and has over 5,000 commercial policyholders including the UK. Richard Turner, who currently oversees EU business from the UK
The smooth transfer of personal data between the European Union and the UK is of critical importance for many British and Continental businesses and may be jeopardized by the Brexit process. The 1995 EU Directive on Privacy establishes EU citizens’ right to privacy, including the protection of their personal data and the “right to be forgotten” from search engines. Countries that conform to these rules receive “adequacy agreements” that
Castel Underwriting Agencies, a managing general agent (MGA) formation platform, has opened its first branch office in Amsterdam, Netherlands to support plans to expand its operations in Europe as the UK leaves the EU. Castel’s European office will offer a platform to develop and launch specialty underwriting cells, as well as support individual underwriters with books of niche business across Europe, the company said. Castel Transact, a division of
Sompo International in April 2018 won regulatory approval in Luxembourg for its E.U. subsidiary, SI Insurance – Europe. The legal entity was set up in January 2018. In the context of Brexit, Sompo intends to write commercial property/ casualty lines in the European Union from Luxembourg, as announced in a November 2017 post.
In the wake of Brexit, AIG in April 2018 announced it has established and received authorization for new insurance companies in the U.K. (American International Group UK Limited) and Luxembourg (AIG Europe S.A.). AIG Europe S.A. will have branches across the European Economic Area and Switzerland. The existing carrier, AIG Europe Limited, will transfer all of its existing insurance business to the new entities well ahead of the U.K.