What impact will Brexit have on Allianz UK business?

Posted on: 06 July 2018

Subject to transition period negotiations between the UK and the EU, the UK will leave the EU on the 29 March 2019. The transition or implementation may mean that EU rules apply until 31 December 2020. This article considers the impact this will have on Allianz Insurance plc and on our customers and business partners.

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This statement represents the views of Allianz Insurance plc only. Other Allianz entities will issue their own communications regarding Brexit and are not considered in this statement.
 


 

What are the legal implications for Allianz Insurance plc?

Allianz Insurance plc is authorised under EU/EEA legislation to issue policies covering EU/EEA risks on a Freedom of Services (FOS) basis. However, when Brexit occurs it’s highly likely that this legislation will no longer apply to the UK. Brexit will happen on 29 March 2019 or the later date of 31 December 2020, subject to the ratification of a transition deal. FOS will apply up to the date of Brexit.

There will be no changes to Allianz Insurance plc’s operation as an authorised insurer and legal entity in the UK after Brexit.
 

What will the impact be on Allianz Insurance plc's UK customers?

Any policies covering UK and EU/EEA risks written on an FOS basis will need to be administered differently to ensure regulatory compliance. Allianz Insurance plc is able, and fully prepared, to support customers with their requirements.
 

What is Allianz Insurance plc doing to help customers with their post-Brexit insurance requirements/needs?

Any policies covering UK and EU/EEA risks written on an FOS basis will need to be administered differently to ensure regulatory compliance. Allianz Insurance plc is able, and fully prepared, to support customers with their requirements.

Allianz Insurance plc is preparing for all possible outcomes and is taking active steps to provide a smooth transition for policyholders who may be impacted by Brexit.

As a global insurer, our multinational network, which spans over 200 territories, will enable us to continue to provide our customers with worldwide insurance solutions. Allianz benefits from having partner offices in all 30 EEA territories, 28 of which are Allianz subsidiary providers.

We are confident that we can fully support customers who are impacted by Brexit and will be able to provide alternative and compliant insurance solutions.
 

How will multinational solutions at Allianz Insurance plc be affected?

Currently a customer can choose from different types of Allianz multinational solutions to cover their risks worldwide, including stand-alone local policies, DIC/DIL above local policies, single European policies (FOS) and centrally-controlled programmes including local policies.

If no trade agreement, including insurance, is in place post-Brexit, the UK can no longer be included within any FOS policies. However, Allianz Insurance plc benefits from our established multinational network which will ensure that minimal operational change is required.

The result may be that Allianz administers two policies: one UK policy and one local overseas policy that covers the risks in the EEA/EU.

However, Allianz Insurance plc will continue to issue FOS policies until the agreed date of Brexit or until alternative information is received agreeing otherwise.
 

What is the Allianz Insurance plc position on "Brexit clauses"?

A Brexit clause is a contractual provision which triggers a change in rights and obligations as a result of a defined Brexit-related event. Due to the global footprint of the Allianz multinational network there is no need for Allianz Insurance plc to adopt Brexit clauses within its policies. Following Brexit, we will continue to administer admitted insurance policies for customers with overseas risks, using the multinational network.