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French insurers need to activate their Brexit contingency plans now in case British and EU negotiators deadlock on the terms of the UK’s departure from the European Union, according to a Bank of France official.
“In the short term, Brexit is unfortunately the issue that will keep us busiest,” Bank of France Governor and European Central Bank policymaker Francois Villeroy de Galhau said.
According to Reuters, Villeroy told a conference of French insurers that the ACPR French financial regulator is “working actively to ensure a smooth transition.”
“But the time has come for insurers to set their contingency plans in motion,” he said. “That means getting new authorisations, transferring portfolios, relocating European companies, and setting up third-country branches. We must be ready for a no-deal scenario, even if we don’t want it.”
