This article considers the position of UK insurers and reinsurers following the conclusion of the Trade and Cooperation Agreement. In light of the brief treatment given to financial services in the Agreement, the industry’s hopes have largely been pinned on EU equivalence determinations. However , it is crucial to bear in mind that equivalence means different things for different sectors.
For the insurance sector, it is suggested that the EU equivalence framework does not provide an appropriate basis for the future relationship between UK and EU 27 insurers and reinsurers. In particular, the equivalence determinations provided by Articles 172, 227 and 260 of the Solvency II Directive do not replicate access to the EU insurance market that passporting previously offered. It remains likely that, in the absence of any further negotiations or agreements, UK insurers and reinsurers will have to make their own arrangements to address market access and contract continuity.