UK REGULATORS WARN OF BREXIT DISRUPTION AND VOLATILITY

UK regulators have warned insures to expect some “market volatility and disruption” from Brexit, particularly for EU-based clients. In a joint letter to chief executives of insurance firms, the Financial Conduct Authority and the Bank of England said insurers must prepare for a “range of scenarios” at the end of the transition period on December 31, 2020. “Financial institutions are continuing to make preparations and engage with clients and customers to minimize any disruption, and it is important that they continue to do so. Final steps by individual firms are required to ensure their preparedness for the end of the transition period,” the regulators said. The letter sets out key areas requiring final preparations, including contingency planning and continuity of cross-border business in respect of EU liabilities, Part VII transfers, data and EEA passporting firms. Earlier this month the European Insurance and Occupational Pensions Authority (Eiopa) also set out its expectations of the insurance sector ahead of the end of the transition period.