Last month the association issued a policy clause to help companies manage insurance contracts as the UK leaves the European Union and this has now been followed up with a supporting document for when risks are underwritten on a subscription market basis.
The original Brexit clause allows a risk to be placed with both a UK domiciled insurer and a ‘contingent’ EU-based insurer. In the event of any Brexit difficulties, this contingent insurer will step in and fulfil any policy obligations that the original carrier is no longer able to cover. It can now be adapted, by use of the new clause, to accommodate risks placed with multiple insurers.
Chris Jones, director of legal and market services at the IUA said: “In the event of a no-deal Brexit companies will fall back on their own individual contingency plans for a continuation of their services to clients. These plans are well advanced and IUA members are working hard to ensure market disruption is kept to a minimum.
“Contract continuity, however, is a key concern and it is vital that companies are able to fulfil commitments to clients whatever the outcome of Brexit negotiations. Our policy clauses are designed to address this issue and support firms as they prepare for the UK’s future outside the EU.”
Both the original IUA Brexit clause (reference IUA 09-077) and the new clause (reference IUA 09-078) are freely available from the association’s clauses website (www.iuaclauses.co.uk), together with accompanying commentaries. As with all IUA clauses their use is not compulsory and firms are free to adopt and adapt its provisions as they see fit.
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