At Allianz Partners we understand the importance of transparency when it comes to Brexit and what that might mean for our business and partnerships. That’s why we’ve pulled together an update for you to tell you everything you need to know about our plans now the 31st December 2020 has passed and the Transition Period has ended.
Now the UK has left the European Union and the Transition Period has ended, EU/EEA rules will not apply in the UK. This article will outline what this change and the introduction of the UK Temporary Permission Regime (TPR) means for the Allianz Partners regulated business in the UK and you, our clients and partners.
Whatever the effects of the UK and EU trade deal negotiations, Brexit will have minimal impact on how Allianz Partners provides UK insurance services to its clients and partners for the reasons expanded on below.
When we state the post-Brexit date we are referring to the 31st December 2020.
Allianz Partners UK Branch and Allianz Assistance UK will remain as the same legal entities in the UK post-Brexit, irrespective of any trade deal, so this provides certainty for you as our clients and business partners.
Like all insurers who previously relied on the EU passporting regime, the UK Branch has been required to make an application to the UK regulatory authorities to become a Third Country Branch (TCB). This application was submitted in 2018 and is currently being considered by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) and we are working proactively with them to progress our application.
Because of the number of applications that will need to be considered by the PRA and FCA due to Brexit, the UK government has created the TPR. This regime was created to give UK regulatory authorities time (up to three years) to consider the large number of applications received and provide certainty for firms like Allianz Partners and our clients and customers. The TPR, in effect, maintains the status quo for EU insurers to continue to operate as they did before Brexit, whilst the PRA and FCA work through the applications they have received.
From the 1st January 2021 Allianz Partners is in the TPR, so there will be practically no change to the way we operate now from how we did before Brexit or the cover provided by us in the UK. Our UK Branch can underwrite UK risks from the 1st January safe in the knowledge that the TPR applies.
The TPR is initially due to last 3 years until the end of 2023 but there is an option to extend that period if it is required.
Although Brexit does create some changes for business and industries across the UK, it shouldn’t have any effect on the day to day operations of Allianz Partners. We will still manage your account in the same way and it will be managed by the same team, therefore you shouldn’t expect any differences in your dealings with us.
The European Health Insurance Card (EHIC) will still be valid post-Brexit. This card gives travellers the right to access state-provided healthcare whilst on holiday or on a trip to the EU. If the traveller doesn’t currently own a EHIC or their EHIC has expired, they can apply for the new GHIC (Global Health Insurance Card) which will be replacing the EHIC in the future. Travellers do not need to apply for a GHIC until their current EHIC has expired. To find out more, click here.
The historical annual cost of treating British citizens under the EHIC scheme is estimated at around £156m by the Association of British Insurers (ABI). We welcome the news of the new GHIC arrangement which will ensure UK citizens continue to benefit from Medical Assistance within the EU.
It is important to note that the GHIC, unlike EHIC, will not be valid in Norway, Iceland, Lichtenstein or Switzerland.
You, therefore, should not expect to see any change in our products and what we offer from a travel insurance perspective. We will continue to offer cover as per the policy Terms and Conditions and scheme performance reviews will continue as normal.
Again, we don’t plan to make any immediate changes to our products. However, it is important to consider that the new health care agreement put in place may mean we are required to make changes to our policy wording. We will always ensure we offer all the correct and current information and will update the policy wording documents accordingly.
If you are interested in learning more about Brexit and it’s impacts on business across the UK, please visit the GOV.UK website, which hosts many articles around the new legislation and how it might affect you. Alternatively, if you are looking to learn more about how and if it will affect our partnership, don’t hesitate to get in touch with your contact here at Allianz Partners, who will happily discuss it with you.