An report into how more than 80 pieces of EU legislation impacts on the insurance and long term savings industry has been published today by the Association of British Insurers.
The association’s ‘mapping exercise’ identifies around 80 pieces of EU legislation that have a particular impact on the sector including EU directives that are applied through UK Acts of Parliament and EU regulations that apply directly. It includes both legislation that is currently in force and that which is due to come into force in the next few years.
The legislation ranges from consumer protections like the European Health Insurance Card and Data Protection regulations, to EU wide prudential regulations like Solvency II.
Of the 80 pieces of EU legislation identified by the ABI, the analysis found that: 52 are transposed into UK Acts of Parliament, 15 apply directly, 12 are not in force yet (but are expected to be before 2019), 46 apply across both general insurance and long term savings , while 30 apply specifically to general and 5 specifically to long term savings.
Scale of the changes
The scale of the changes that are already in pipeline represents a taster of what the insurance and long term savings industry can expect to have to deal with once the UK properly begins its exit from the European Union.
Huw Evans, director general of the ABI, warned UK Prime Minister Theresa May about missing the range of important changes that are in the process of being implemented or planned across the next few years.
“While the [UK] Prime Minister has promised to enshrine all existing EU law into British law, there remains a much bigger challenge to decide which laws Parliament wants to retain in the longer term,” he said.
“This analysis sets out quite how wide-ranging those issues will be when it comes to insurance and long-term savings. It identifies some 80 EU directives and regulations that will need to be worked through if we wish to ensure a broadly consistent framework of customer rights, legal responsibilities and financial stability with European markets we will want to trade with.
“The ABI and our members are committed to working constructively with the Government and parliamentarians to meet the opportunities and challenges ahead. This analysis will ensure an effective approach to help the tens of millions of customers our members serve,” added Evans.