providing services in the Czech Republic on the basis of authorisation granted in the United Kingdom of Great Britain and Northern Ireland in view of the end of the transition period
The Czech National Bank hereby notifies policyholders and beneficiaries who have insurance policies with foreign insurance companies providing insurance in the Czech Republic on the basis of authorisation granted in the United Kingdom of Great Britain and Northern Ireland (“UK”) including Gibraltar (“foreign insurance companies”) or receive claim settlement from such policies that after the end of the transition period under Article 126 of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (“transition period”), i.e. on 1 January 2021, the authorisation of foreign insurance companies to carry on insurance business in the Czech Republic (under the single European passport) will end.
Foreign insurance companies will only be authorised to carry on activities in the Czech Republic that are necessary to settle obligations arising from contractual relationships concluded before the end of the transition period. Foreign insurance companies may not enter new contractual relationships or broaden the scope of existing obligations in any way. Their further actions should be aimed solely at settling their obligations in the Czech Republic and terminating their activities in the Czech Republic. A licence to carry on insurance activities pursuant to Act No. 277/2009 Coll., on Insurance, as amended, is necessary for the provision of insurance services.
Any termination of the authorisation of foreign insurance companies to carry on insurance business in the Czech Republic is without prejudice to the validity of existing insurance policies.
If you have an insurance policy with a foreign insurance company or are a beneficiary of such an insurance policy, the Czech National Bank expects the foreign insurance company to inform you of the legal consequences of the end of the transition period in respect of the rights and obligations arising from insurance policies and also of the actions that will be taken by the foreign insurance company to settle all claims and debts arising from these insurance policies.
The Czech National Bank will supervise compliance with duties by foreign insurance companies in the Czech Republic (above all the prohibition to conclude new contracts and change the scope of existing obligations).
However, the Czech National Bank will not supervise compliance with rules of conduct towards clients if the service provider has a registered office in the UK and carries on its activities in the Czech Republic in a form other than through a branch or other permanent presence (e.g. on a cross-border basis over the Internet).