The Government of France has published a new set of emergency measures related in particular to financial services and insurance to prepare for the UK leaving the European Union (EU) without a deal.
The two statutory instruments issued by the Government of French will cover contracts entered into before Brexit on the basis of the European Economic Area (EEA) insurance passport.
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The instruments will become effective from the date the UK withdraws from the EU without a deal and will be effective for 12 months thereafter.
As per the new rule, insurance contracts covering French risks via the freedom to provide services or the freedom of establishment may not be amended if such amendment entails the collection of additional premiums.
All renewals, including automatic ones are barred by the new measures.
Payment of claims will not be considered as a breach at least for the first 12 month, which means British insurer can pay claims post-Brexit.
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By GlobalDataIf any of these requirements are violated, the insurance contract will become null and void. However, the ability to implement the nullity of the contract will be limited to the policyholder, insureds and beneficiaries.
Additionally, the French insurance supervisor, ACPR, will be able to sanction British insurers if they concluded contracts on the basis of the EEA passport.
