There is no guarantee that insurance and derivative contracts won't be disrupted after Brexit, despite Britain and the European Union (EU) agreeing on a "standstill" transition period, according to the EU. The EU has said it will not allow any disruption of its financial services or payments systems as long as there are "sufficient guarantees" in place for companies operating across Europe. The Bank of England said £82bn ($110bn) of insurance liabilities and 48 million policyholders could be affected across the UK and the EU, while derivatives worth £26tn could be affected too. Banks and insurers have called on the EU to agree to a "grandfathering" system, whereby existing contracts run their course.
There is no guarantee that insurance and derivative contracts won't be disrupted after Brexit, despite Britain and the European Union (EU) agreeing on a "standstill" transition period, according to the EU. This is because such an agreement is subject to ongoing negotiations, said Valdis Dombrovskis, EU financial services chief. The Bank of England said £82bn ($110bn) of insurance liabilities and 48 million policyholders could be affected across the UK and the EU, while derivatives worth £26tn could be affected too. Banks and insurers have called on the EU to agree to a "grandfathering" system, whereby existing contracts run their course.