As insurance firms seek to establish EU hubs to continue operations on the continent following Brexit, the union’s insurance watchdog has said it will publish guidelines for national regulators.
“EIOPA (European Insurance and Occupational Pensions Authority) is closely monitoring the developments and will publish in due course its guidance for national authorities on sound principles for authorisation and supervision,” said EIOPA’s head of policy Manuela Zweimuller on Thursday.
“We will subsequently closely monitor their implementation,” he added, as quoted by
Reuters.
Earlier this month Luxembourg denied offering special deals to undercut European rivals. Pierre Gramegna, Luxembourg’s finance minister, told the media that discussions with financial firms have been in progress since the Brexit vote in June 2016.
“Luxembourg has not taken any special measures, and nor do we plan to,”
Reuters quoted Gramegna as saying. “It doesn’t give the right signal. There are EU regulations that everyone must comply with.”
Without naming specific countries, Irish financial services minister Eoghan Murphy previously said that other EU centres are being “very aggressive” while engaging in “regulatory arbitrage.”
“We are hearing from various sources that companies are being offered certain incentives, that they are offering a back door to the single market, without the requirement to have capital to back up their entities in the European Union,” Murphy told
Reuters.
Insurance Business research shows that American International Group (
AIG), FM Mutual, and
Hiscox have decided to set up shop in Luxembourg. Meanwhile, Ireland will host
Admiral,
Beazley, and Royal London; with Lloyd’s of London heading to Brussels and Markel to Munich.
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