On 14 September 2017, the UK Parliament published a letter from Nicky Morgan, Chair of the Treasury Committee, to Philip Hammond, Chancellor of the Exchequer, on insurers’ ability, post-Brexit, to service insurance contracts sold under passporting arrangements with a duration that extends beyond 29 March 2019.
In particular, citizens – including many UK expatriates – who live in an EEA State may find it difficult to receive pension payments from a UK insurer which has no authorisation to carry on business in that jurisdiction post-Brexit. Mr Hammond is asked to explain how HM Treasury is proposing to deal with this issue in the context of Brexit negotiations.
On 20 September 2017, Mr Hammond responded to Ms Morgan’s letter. He acknowledges that Brexit may create legal uncertainties regarding the status of existing cross-border insurance, pension and other financial services contracts sold under passporting arrangements. He also discusses the Government’s aim to negotiate a time-limited interim period to provide certainty for businesses and individuals during the transition to a new relationship with the EU. Beyond this, he does not specify any concrete proposals for dealing with the issues raised in Ms Morgan’s letter.