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Under a set of proposed emergency measures set to kick in if a no-deal Brexit occurs, France has clarified that UK carriers can continue paying claims on in-force French policies without breaching European Economic Area (EEA) rules for 12 months after the UK leaves the EU.
France has also specified that insurance contract renewals between UK carriers and French buyers will not be sanctioned after the UK loses freedom to provide services as a member of the EU, unless an EEA carrier is in place. The measures also state that in-force contracts cannot be amended to collect additional premiums.
Any breach of the requirements will void the insurance contract, the legislation states. French regulator ACPR will be able to enforce sanctions against UK insurers over contracts entered into under the EEA passport. The proposed legislation also requires UK carriers to inform policyholders that they cannot renew existing contracts using a specified format, yet to be issued.
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