Brexit Q&A Update – 29th April 2022

29 April, 2022

Update: UK’s Financial Services Compensation Scheme (FSCS) does not apply to Ark Life policies sold by AIB Great Britain or First Trust Bank post Brexit.

How will Brexit impact you if your policy was sold through AIB Great Britain or First Trust Bank

The United Kingdom (UK) formally left the European Union (EU) on 31 January 2020 moving into a transition period until 31 December 2020 where EU rules and regulations continued to apply. The transition period ended on 31 December 2020 and this Brexit Q&A is intended to provide information on how this impacts you as a policyholder.

Q. I live in Northern Ireland and my policy was sold through First Trust Bank. How does Brexit affect my policy with Ark Life?

Your policy will remain valid and enforceable and the terms and conditions of your policy will remain unchanged due to Brexit. Ark Life continues to be authorised and regulated by the Central Bank of Ireland, the supervisory authority for Irish insurance companies.

The Financial Services Compensation Scheme (FSCS) is a UK Government scheme designed to compensate customers where an insurer fails. Post the Brexit transition period which ended  on 1 January 2021 and in the absence of any subsequent EU/UK agreement with regards to FSCS, your policy is no longer covered by the UK’s FSCS.

The FSCS policyholder protection scheme only applies in the case of an insurer becoming insolvent. This means that where an insurer fails, valid claims would continue to be paid by the FSCS scheme.  Whilst the FSCS no longer applies to your policy(s), Ark Life is subject to EU solvency requirements and we are confident that the risk of policyholder loss from Ark Life being unable to meet its financial commitments is remote.

Q. I live in the UK and my policy was sold through AIB Bank, Great Britain. How does Brexit affect my policy with Ark Life?

Your policy will remain valid and enforceable and the terms and conditions of your policy will remain unchanged due to Brexit. Ark Life continues to be authorised and regulated by the Central Bank of Ireland, the supervisory authority for Irish insurance companies.

The Financial Services Compensation Scheme (FSCS) is a UK Government scheme designed to compensate customers where an insurer fails. Post the Brexit transition period which ended  on 1 January 2021 and in the absence of any subsequent EU/UK agreement with regards to FSCS, your policy is no longer covered by the UK’s FSCS.

The FSCS policyholder protection scheme only applies in the case of an insurer becoming insolvent. This means that where an insurer fails, valid claims would continue to be paid by the FSCS scheme.  Whilst the FSCS no longer applies to your policy(s), Ark Life is subject to EU solvency requirements and we are confident that the risk of policyholder loss from being unable to meet our financial commitments is remote.

Q. What insurance policyholder protection is in place in Ireland?

Although there is no formal insurance policyholder compensation scheme in Ireland there is a robust insurance regulatory framework in place to protect Ark Life’s customers:

  • Ark Life is authorised and regulated by the Central Bank of Ireland (CBI), the supervisory authority for Irish insurance companies.
  • Irish law and regulation that governs the winding up of life companies means that policyholders’ liabilities must be paid ahead of any other claims of the life assurance company other than the cost of winding up the company.
  • As an Irish regulated life assurance company, Ark Life is required to segregate policyholder assets from those of shareholders so they cannot be used to support its financial position.
  • Ark Life is subject to stringent EU solvency requirements. Ark Life’s Solvency and Financial Condition Report (SFCR) is available on our website where our solvency position is published and updated on an annual basis. See: Solvency II : Ark Life
  • The CBI has powers of intervention if they are concerned about the solvency of a life assurance company.

Q.  Should there be any further updates with regards to Brexit impact on my policy, how will I be kept informed?

Should any further changes arise that impact your policy with Ark Life, we will update our website.

If you have any further queries, please contact our Customer Services Team at 00 353 1 704 1244 or email customerservice@arklifeadmin.ie  or contact your financial advisor.