A Brexit article was issued by the International Writing Union (IUA) to help companies manage their insurance contracts due to the separation of the UK from the European Union.
The Brexit Containment Proceeding is intended to clarify how companies will continue to pay their claims, despite any interruption in business, which is caused by a situation in which adequate transitional arrangements have not been agreed upon.
In a statement to the IUA in a statement, the insurance companies affiliated to the EU financial service passport may no longer have the right to obtain a license to maintain collateral or payment claims on existing contracts after March 2019 to engage in cross-border business between the UK and continental Europe.
For this reason, the new clause allows a risk to be created together with an insurance company based in the UK and an insurance company based in an “EU”. In case of any Brexit difficulty, this insurance company will fulfill and fulfill any policy liability that the original carrier no longer affords.
“Brexit continues to be uncertain about the relationship between the final outcome of the process and the future trade relationship between the UK and the remaining EU countries,” said Chris Jones, IUA’s director of market and legal services.
“A number of other market factors have already attempted to address the issue of contract sustainability, but have made it difficult to design a solution that covers all political situations. Another problem was that both of them were cooking for many different institutional structures now planned by the firms as part of the Brexit contingency responses available on the London market, “continued Jones.
“In conclusion, an important aspect of the IUA’s new jurisdiction is that the legal principles supporting the contingent insurer approach are sound, and that the terminology and intent of the term are as clear as possible.”
The IUA Brexit Contract Durability Material (reference IUA 09-077) was prepared by the Committee of Committees of the Association on the request of the Brexit Working Group. This is accompanied by a companion comment summarizing the detail conditions that may be in use. This paragraph can be used primarily for reinsurance risks as well as primarily for insurance activities.
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