Insurance companies based in the United Kingdom can operate in other parts of the European Union under a so-called EU passport arrangement for financial services.
[1][2] According to the Financial Conduct Authority, this could affect 38 million policyholders with policy values of up to GBP 55 billion.
A submission to a UK court will be made to transfer the book of business to this EU entity.
[4][5][6] Given the volume of transfers in the run up to the date when the UK leaves the EU, there have been reports about delays in court hearings.
[8] In a similar fashion, banks use the Part VII transfer framework to move their swap business to EU entities.