The UK was expected to exit the EU (Brexit) on 29 March 2019, a flexible extension date to exit the EU has been granted up to the 31st October 2019.
We (Ark Life) have considered the potential implications of Brexit for our customers and our business. At the moment, we still don’t know what the UK’s future relationship with the EU will look like, however our view is that regardless of the exact nature of that future relationship we will be able to continue to service your policy.
Q. I live in Northern Ireland and my policy was sold through First Trust Bank. How will the UK leaving the EU impact my policy?
Ark Life is satisfied that we will be able to continue to collect premiums and pay valid claims after the UK exits the EU, even in the event of a “hard” / “no deal” Brexit. We will continue to monitor the situation and will provide updates in due course.
Q. I live in the UK and my policy was sold through AIB Bank Great Britain. How will the UK leaving the EU impact my policy?
Ark Life is satisfied that we will be able to continue to collect premiums and pay valid claims after the UK exits the EU, even in the event of a “hard”/ “no deal” Brexit. We will continue to monitor the situation and will provide updates in due course.
Q. Will financial compensation provided by the UK Governments Financial Services Compensation Scheme (FSCS) still apply to my policy after Brexit?
The FSCS is a UK Government scheme designed to compensate customers where an insurer fails. The FSCS protection is limited and only applies in the case of an insurer becoming insolvent. This means that where an insurer fails, valid claims would continue to be paid.
In the event of a hard Brexit, your policy would not benefit from the protection provided under FSCS, based on the wording in the existing rules.
However, Ark Life continues to be 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: https://www.arklife.ie/uploads/2019/04/SFCR-2018.pdf
We are continuing to monitor for any updates from the UK regulators regarding this topic.
Q What is meant by the term “hard Brexit”
A hard Brexit would arise where the UK leaves the EU without concluding a Withdrawal Agreement, and therefore transitional arrangements would not be in place between the UK and the EU.
If the withdrawal agreement is signed, then a transition period starts when the UK leaves the EU. The transition is a kind of stand-still when most things remain as they are now until December 2020, at least – and possibly until December 2022 to allow negotiations of the future relationship between the EU and UK to take place, which would include updates to legislation and regulatory requirements.
Q. How will I be kept informed about the impacts of Brexit on my policy?
We will continue to closely monitor the situation and consider the potential implications of Brexit. If any changes are announced that we think might affect our customers, we will update our website to let everyone know about it.
Customer Services can be contacted at 00 353 1 704 1244 or email firstname.lastname@example.org