Writing business in the UK post - Brexit
Introduction on Brexit
The United Kingdom (“UK”) left the European Union (“EU”) on 31 January 2020. This is the so-called “Brexit”. Transitional arrangements under which that have allowed the UK and the EU to deal with each other freely on pre-Brexit terms end on 31 December 2020. Generali Global Corporate & Commercial has worked since the beginning to guarantee cover and service continuity to our UK-based clients, as well as our global clients with UK exposure.
The UK remains a key market for GC&C. Generali has identified and designed a solution to keep writing business in the UK, both for domestic UK business and in support of group companies writing multinational programs. The Generali Group’s branch in the UK is fully authorized to write UK business, and includes a team handling both domestic and international business and supporting group companies with risk in the UK. Our UK branch can issue local admitted policies to support multinational programs produced by other Generali companies. Within Multinational programs, cross border covers produced by EU-based Generali companies will be insured using options provided through post-Brexit regulation. This will ensure seamless, compliant covers for our multinational clients.
For Generali companies outside the EU producing multinational business, we’ve designed an additional service that provides cover under FoS for risks located in the EEA on behalf of non-Eu Generali companies. These covers are provided through Generali offices based in the EEA.
Our solutions
Generali has identified and designed a solution to keep writing business in the UK, both for domestic UK business and in support of group companies writing multinational programs.
The Generali Group’s branch in the UK is fully authorized to write UK business, and includes a team handling both domestic and international business and supporting group companies with risk in the UK.
Our UK branch can issue local admitted policies to support multinational programs produced by other Generali companies. Within Multinational programs, cross border covers produced by EU-based Generali companies will be insured using options provided through post-Brexit regulation.
This will ensure seamless, compliant covers for our multinational clients.
Within Multinational programs, cross border covers produced by EU-based Generali companies will be insured using options provided through post-Brexit regulation.
For Generali companies outside the EU producing multinational business, we’ve designed an additional service that provides cover under FoS for risks located in the EEA on behalf of non-Eu Generali companies. These covers are provided through Generali offices based in the EEA.
Two Different scenarios involving UK exposure
SCENARIO 1
Generali companies (non-UK-based) producing multinational business with UK exposure
Generali’s UK branch will issue a local admitted policy.
Possible Cross borders covers will be insured leveraging options available through post-Brexit regulation in order to ensure seamless, compliant covers for our multinational clients.
SCENARIO 2
Generali UK-produced business
In order to continue to provide a near-seamless service and ensure our mutual Clients are not impacted, from the 1st January 2021 we will be utilizing our EU license, Assicurazioni Generali S.p.A. (Italy) for all direct EEA exposures on new and renewal business as well as any significant extensions to existing business.
For placements including EEA and non-EEA direct exposures this will require the use of two stamps, each signed in the UK, with two references. A split of premium between EEA and non-EEA commensurate with their relative exposures will be required, as well as appropriate interlocking language to be included within the contract.
We currently underwrite all our UK produced risks as the UK branch of Assicurazioni Generali S.p.A and therefore the security is unaffected. We have introduced operational processes to ensure appropriate authorizations and that the engagement with our Underwriters and Claims staff will remain unchanged.
In the meantime we look forward to the smooth continuation of our successful trading relationship for many years to come.
Additional service to cover EEA exposure for Generali companies outside the EU
Generali companies outside the EU that produce multinational business with EEA exposure
- A local admitted policy will be issued leveraging Generali’s EU offices and partners.
- We have also designed a fully operational service that, through a Generali EU-based office, provide cover under FoS for EEA-based risks on behalf of non-EU Generali companies.
Conclusions
The aforementioned solutions guarantee a seamless journey for our customers for both renewals and new business.
Continuity in insurance services is our priority.
Please refer to your usual Generali contact to analyze your situation and identify the best solution for your business needs.
Q&A Section
How will Generali provide cover and insurance services to customers with UK exposure after 01 January 2021?
Continuity in insurance services has always been our priority. Following 01 January 2021 Generali will provide local policies issued by our UK branch. This is branch of Assicurazioni Generali SpA, based in Italy, that is fully authorized to operate across the UK.
Has Generali identified a solution for UK-based clients with EEA exposure?
In order to continue to provide a near-seamless service and ensure our mutual Clients are not impacted, from the 1st January 2021 we will be utilizing our EU license, Assicurazioni Generali S.p.A. (Italy) for all direct EEA exposures on new and renewal business as well as any significant extensions to existing business. For placements including EEA and non-EEA direct exposures this will require the use of two stamps, each signed in the UK, with two references. A split of premium between EEA and non-EEA risks commensurate with their relative exposures will be required, as well as appropriate interlocking language to be included within the contract.
We currently underwrite all our UK produced risks as the UK branch of Assicurazioni Generali S.p.A and therefore the security is unaffected. We have introduced operational processes to ensure appropriate authorizations and that the engagement with our Underwriters and Claims staff will remain unchanged.
How will Generali Companies cover risk in the UK for their multinational Clients?
Generali’s UK Branch will issue a local admitted policy. Potential cross-border covers will leverage options made available through post-Brexit regulation in order to guarantee seamless, compliant covers for our multinational clients.
How will Generali companies outside the EU be able to cover risks within the EEA for their multinational clients?
First we will rely on Generali’s EU operation and partners to issue a local admitted policy. We have also designed a fully operational service that leverages Generali’s EU-based operation to provide cover under FoS for risks located in the EEA on behalf of non-EU Generali companies.
What about policies issued by EU Generali companies prior to Brexit that expire after 01 January 2021?
Generali’s EU Companies are leveraging applicable regimes offered by UK authorities in order to continue conducting regulated activities in the UK. As always, we focus on identifying the best solution depending on each client’s individual needs.