Press Release - NOVEMBER 28, 2018
A.M. BestTV: Insurers Move to Mitigate Possible Loss of Passporting Rights, Says A.M. Best Senior Director
| ||Lee McDonald|
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 28, 2018
In this episode of A.M.BestTV, Catherine Thomas, senior director of analytics, A.M. Best, said insurers are preparing for the possibility that the United Kingdom will leave the European Union (EU) without securing agreements to protect cross-border insurance relationships. Click on http://www.ambest.com/v.asp?v=brexit1118 to view the entire program.
Thomas explained the significance of passporting in the United Kingdom.
“Passporting allows EU insurers to write cross-border business throughout the European Economic Area (EEA),” said Thomas. “When the United Kingdom withdraws from the EU, and at the end of any transition period, it is expected that passporting rights, which currently exist between the United Kingdom and the EEA will cease.”
Highlighting the impact of the potential loss of passporting, she said, “That will mean that U.K. insurers will no longer be able to issue insurance contracts in the EEA. It is also possible that in the absence of a political solution, they will no longer be able to service existing EEA business through the settlement of payment of claims.”
While the possibility of losing passporting presents a challenge, Thomas said insurers are putting together contingency plans.
“The majority of insurers that are affected by Brexit and rated by A.M. Best are looking to transfer their EEA portfolios from a U.K. insurer into an affiliated EEA insurer under Part VII of the Financial Services and Markets Act.”
Recent episodes of A.M.BestTV include:
- Wildfires Likely to Shake Up California’s Homeowners Insurance Market, Say A.M. Best Analysts: Jason Hopper, associate director, and David Blades, senior research analyst, both with A.M. Best, said losses from the ongoing wildfires in California will put pressure on homeowners insurers: http://www.ambest.com/v.asp?v=ambcafires1118 .
- Methodology Revision Led to Changes for 3% of Rated EMEA Insurers, Say A.M. Best Analysts: At the 2018 annual A.M. Best Insurance Market Briefing – Europe in London, Greg Carter, managing director, analytics; Carlos Wong-Fupuy, senior director and Mahesh Mistry, senior director, analytics, discussed the impact of A.M. Best’s 2017 rating methodology update: http://www.ambest.com/v.asp?v=bcrmpanel1118 .
- Latin America Offers Large Potential Market for Microinsurance, Says A.M. Best Senior Managing Director: At the LIMRA-LOMA Latin American Conference, Andrea Keenan, senior managing director, A.M. Best, said while insurers in Latin America don’t focus on microinsurance as much as they do in other regions of the world, a large potential audience still exists there that could benefit from the product: http://www.ambest.com/v.asp?v=keenan1118 .
- The Future of Life Insurance: Faster, Smaller, Customized and Multi-Purpose: Attendees at the 2018 LIMRA Annual Conference said ordinary life coverage should have a solid future but will likely be sold in new and innovative ways and in a variety of formats: http://www.ambest.com/v.asp?v=limra31118 .
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