The UK was expected to exit the EU (Brexit) on 31 October 2019, a flexible extension date to exit the EU has been granted up to the 31st January 2020.
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.
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.
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 under this UK Government Scheme.
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. If, on the other hand, there is a Brexit transition period agreed, then we would expect the FSCS arrangements to remain in place during the transition period.
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
If you want more information on the FSCS, you can contact the FSCS helpline on 0800 678 1100 or on +44 207 741 4100, visit the FSCS website at www.fscs.org.uk or write to the FSCS at the following address: PO Box 300, Mitcheldean, GL17 1DY.
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 in the event of any future changes arising, for example, future changes to legislation and regulations, after the UK leaves the EU. If any further changes are announced that we think might affect our customers, we will update our website to let everyone know about it.
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