On 20th December, the Insurance Europe Reinsurance Advisory Board wrote to the UK Prudential Regulatory Authority (PRA) to discuss the UK’s treatment of EU reinsurers post-Brexit.
The RAB welcomed the PRA’s approach to passporting firms post-Brexit, and said market disruption can be avoided if firms can plan on the basis that PRA authorisation will only be needed by the end of the implementation period and that, in the event of no implementation period, the temporary permissions regime (TPR) will allow firms to continue operating – for a period after withdrawal – in advance of receiving PRA authorisation.
The RAB also welcomed the fact that transitional relief will apply for some of the rules that apply to firms in the TPR. These are important steps to support the UK economy and to benefit UK consumers post Brexit. Nevertheless, the RAB raised concerns in light of the PRA’s recent Brexit consultation papers about the potential treatment of UK branches of European Economic Area undertakings carrying on reinsurance in the UK after Brexit.
Created and modified by Richard Makillican