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 (“foreign insurance companies”) that in the event of the withdrawal of the United Kingdom from the European Union under Article 50(2) of the Treaty on the European Union without an agreement on the conditions of the withdrawal, the authorisation of foreign insurance companies to carry on insurance business in the Czech Republic will end and their further activities will temporarily be governed by Act No. 74/2019 Coll., on Amending Certain Matters in Connection with the Withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union (“Lex Brexit”).
Lex Brexit allows foreign insurance companies to carry on business to a limited extent in the Czech Republic during a transition period running from the date of withdrawal from the European Union until 31 December 2020. Foreign insurance companies will only be authorised to perform activities in the Czech Republic that are necessary to settle claims and debts arising from insurance contracts (Article 24(1) of Lex Brexit). Foreign insurance companies may not conclude new insurance contracts or amend the content of existing ones. Their further actions should be aimed at settling their obligations in the Czech Republic or obtaining authorisation to carry on insurance business in compliance with Act No. 277/2019 Coll., on Insurance, as amended.
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 contracts, and the obligations arising from them must be fulfilled by the contracting parties.
If you have an insurance contract with a foreign insurance company or are a beneficiary of such an insurance contract, the Czech National Bank expects the foreign insurance company to inform you of the legal consequences of the withdrawal of the United Kingdom from the European Union in respect of the rights and obligations arising from insurance contracts and also of the actions that will be taken by the foreign insurance company to settle claims and debts arising from these insurance contracts.
The Czech National Bank will supervise compliance with duties by foreign insurance companies in the Czech Republic during the aforementioned transition period.