House of Lords examines ways for insurers to maintain EU access

Committee chairperson adamant that UK must retain its influence

House of Lords examines ways for insurers to maintain EU access

Insurance News

By Terry Gangcuangco

There’s just no giving up yet. The financial affairs committee of the House of Lords is looking into how the European Union market can still be accessed by insurance companies even after Britain’s departure less than two years from now.   

Committee chairperson Kishwer Falkner cited the need for Britain to stay influential in setting global standards, as well as the necessary cooperation between British supervisors and those from the EU. 

“We would like to explore the options for such engagement,” said Falkner, as quoted by a Reuters report. The committee, which will commence public hearings in September, also aims to scrutinise whether an equivalence regime is the way to go.

The Global Reinsurance Forum, in a letter to the European Commission last June, said if passporting arrangements are not maintained, then national regulations will inevitably make cross-border reinsurance more difficult and expensive. The group wants existing arrangements to continue under a subsequent trade deal.

Meanwhile, the European Insurance and Occupational Pensions Authority (EIOPA) has called for a harmonised recovery and resolution framework in order to maintain financial stability in the EU and to protect policyholders.

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