UK's EU divorce could upset insurance applecart



There is no guarantee that Brexit won't disrupt millions of insurance and derivative contracts and it is still up to firms to take preventive measures, the European Union's financial services chief said.

Valdis Dombrovskis was asked by EU policymakers whether he could offer EU citizens guarantees that policies they had bought from insurers in Britain would still pay out if there is a hard or no-deal Brexit next March, when Britain is due to leave the European Union.

"I would be somewhat hesitant to give guarantees because negotiations are still ongoing and the outcome is still not 100 percent clear," Dombrovskis told the European Parliament last week.

Britain and the EU have agreed on a "standstill" transition period whereby EU rules remain in force in Britain until the end of 2020, which would ensure continuity in cross-border financial contracts like insurance policies and derivatives.

But this transition is part of Britain's broader EU divorce settlement which is still being negotiated, and won't be legally watertight until October or later.

_______________

Read more:

Global banks seek Brexit exemptions for international staff

Britain pumps cash into artificial intelligence before Brexit

_______________

The Bank of England has said £82 billion (Dh405.52bn) of insurance liabilities involving 48 million policyholders could be affected across Britain and the European Economic Area. Derivatives worth a notional £26 trillion are also caught in the Brexit crosshairs.

Without transition, it would be illegal in some cases to make payouts on insurance contracts or amend derivatives contracts after March next year.

Insurers in Britain have begun the lengthy legal process of moving blocks of policies to new or expanded hubs in the EU.

Britain has said it would legislate to avoid disruption to financial services offered by EU firms to Britons in the event of a hard Brexit.

Banks and insurers have urged the bloc to formally agree to "grandfathering" or allowing the stockpile of existing multi-year financial contracts to run their course.

But Mr Dombrovskis stuck to the bloc's line that it was up to industry rather than EU authorities to play a "major role" in avoiding contract disruption.

Insurers and banks in Britain could transfer insurance policies and derivatives contracts to EU entities, while clearing of contracts was already being looked at, he said.

"For other market infrastructures like trading venues and depositories, the identified risks are of smaller magnitude," Mr Dombrovskis said.

Risks here to financial stability could be tackled through measures such as allowing a "phasing out", if needed, he said without elaborating.

The European Central Bank and Bank of England working group announced this month to deal with financial stability around Brexit Day next March will look at these concerns, Mr Dombrovskis said.

"We are working towards an orderly exit and to minimise disruption," he said.

COMPANY PROFILE

Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures

Confirmed bouts (more to be added)

Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez

Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.

PULITZER PRIZE 2020 WINNERS

JOURNALISM 

Public Service
Anchorage Daily News in collaboration with ProPublica

Breaking News Reporting
Staff of The Courier-Journal, Louisville, Ky.

Investigative Reporting
Brian M. Rosenthal of The New York Times

Explanatory Reporting
Staff of The Washington Post

Local Reporting  
Staff of The Baltimore Sun

National Reporting
T. Christian Miller, Megan Rose and Robert Faturechi of ProPublica

and    

Dominic Gates, Steve Miletich, Mike Baker and Lewis Kamb of The Seattle Times

International Reporting
Staff of The New York Times

Feature Writing
Ben Taub of The New Yorker

Commentary
Nikole Hannah-Jones of The New York Times

Criticism
Christopher Knight of the Los Angeles Times

Editorial Writing
Jeffery Gerritt of the Palestine (Tx.) Herald-Press

Editorial Cartooning
Barry Blitt, contributor, The New Yorker

Breaking News Photography
Photography Staff of Reuters

Feature Photography
Channi Anand, Mukhtar Khan and Dar Yasin of the Associated Press

Audio Reporting
Staff of This American Life with Molly O’Toole of the Los Angeles Times and Emily Green, freelancer, Vice News for “The Out Crowd”

LETTERS AND DRAMA

Fiction
"The Nickel Boys" by Colson Whitehead (Doubleday)

Drama
"A Strange Loop" by Michael R. Jackson

History
"Sweet Taste of Liberty: A True Story of Slavery and Restitution in America" by W. Caleb McDaniel (Oxford University Press)

Biography
"Sontag: Her Life and Work" by Benjamin Moser (Ecco/HarperCollins)

Poetry
"The Tradition" by Jericho Brown (Copper Canyon Press)

General Nonfiction
"The Undying: Pain, Vulnerability, Mortality, Medicine, Art, Time, Dreams, Data, Exhaustion, Cancer, and Care" by Anne Boyer (Farrar, Straus and Giroux)

and

"The End of the Myth: From the Frontier to the Border Wall in the Mind of America" by Greg Grandin (Metropolitan Books)

Music
"The Central Park Five" by Anthony Davis, premiered by Long Beach Opera on June 15, 2019

Special Citation
Ida B. Wells

 

The specs

Engine: four-litre V6 and 3.5-litre V6 twin-turbo

Transmission: six-speed and 10-speed

Power: 271 and 409 horsepower

Torque: 385 and 650Nm

Price: from Dh229,900 to Dh355,000

COMPANY PROFILE

Name: Xpanceo

Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

INDIA'S TOP INFLUENCERS

Bhuvan Bam
Instagram followers: 16.1 million
Bhuvan Bam is a 29-year-old comedian and actor from Delhi, who started out with YouTube channel, “BB Ki Vines” in 2015, which propelled the social media star into the limelight and made him sought-after among brands.
Kusha Kapila
Instagram followers: 3.1 million
Kusha Kapila is a fashion editor and actress, who has collaborated with brands including Google. She focuses on sharing light-hearted content and insights into her life as a rising celebrity.
Diipa Khosla
Instagram followers: 1.8 million
Diipa Khosla started out as a social media manager before branching out to become one of India's biggest fashion influencers, with collaborations including MAC Cosmetics.
Komal Pandey
Instagram followers: 1.8 million
Komal Pandey is a fashion influencer who has partnered with more than 100 brands, including Olay and smartphone brand Vivo India.
Nikhil Sharma
Instagram followers: 1.4 million
Nikhil Sharma from Mumbai began his online career through vlogs about his motorcycle trips. He has become a lifestyle influencer and has created his own clothing line.
Source: Hireinfluence, various

Company profile

Company name: Twig Solutions (with trade name Twig)
Started: 2021
Founders: Chafic Idriss, Karam El Dik and Rayan Antonios
Based: UAE
Sector: FinTech
Initial investment: bootstrapped (undisclosed)
Current number of staff: 13
Investment stage: pre-seed — closing the round as we speak
Investors: senior executives from the GCC financial services industry and global family offices

COMPANY PROFILE

Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others

COMPANY PROFILE

Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends

ASSASSIN'S CREED MIRAGE

Developer: Ubisoft Bordeaux
Publisher: Ubisoft
Consoles: PlayStation 4&5, PC and Xbox Series S&X
Rating: 3.5/5

ANDROID VERSION NAMES, IN ORDER

Android Alpha

Android Beta

Android Cupcake

Android Donut

Android Eclair

Android Froyo

Android Gingerbread

Android Honeycomb

Android Ice Cream Sandwich

Android Jelly Bean

Android KitKat

Android Lollipop

Android Marshmallow

Android Nougat

Android Oreo

Android Pie

Android 10 (Quince Tart*)

Android 11 (Red Velvet Cake*)

Android 12 (Snow Cone*)

Android 13 (Tiramisu*)

Android 14 (Upside Down Cake*)

Android 15 (Vanilla Ice Cream*)

* internal codenames


Energy This Week

Expert analysis on oil & gas renewables and clean energy

      By signing up, I agree to The National's privacy policy
      Energy This Week