Brexit Implications Disclosure Notice to Policyholders
Catalina Insurance Ireland dac (the “Company”) is an insurance undertaking authorised by the Central Bank of Ireland, pursuant to the European Union
(Insurance and Reinsurance) Regulations 2015, to carry on non-life insurance business in classes 1 to 18 as defined in the European Union
(Insurance and Reinsurance) Regulations 2015 (SI No 485 of 2015), with the right to carry on such classes in other EU jurisdictions on a freedom of services basis.
The Company was previously part of the HSBC Group and was acquired by Catalina in October 2012. Following this acquisition the Company was renamed
to Catalina Insurance Ireland dac (formerly HSBC Insurance (Ireland) Ltd.).
When part of the HSBC Group, the Company underwrote personal lines business in the UK and Northern Ireland. These business lines have been in run-off since July 2012.
During 2015, the Company acquired a portfolio of claims liabilities from Quinn Insurance Limited (Under Administration). The business is predominately UK and Northern Ireland
motor and professional indemnity and some employer’s liability and public liability business. The majority of this business has been in run-off since 31 December 2012,
with the exception of a portfolio of professional indemnity risks which have a run-off period of 6 years once the policy has expired.
The Company’s UK and Northern Ireland claims are administered in the UK, with the claims handling outsourced to UK companies.
Brexit Contingency Planning
The Company is committed to honouring all of its contractual obligations. Therefore, in order to minimise any potential disruption to its policyholders the Company has put
in place contingency plans. As part of its Brexit planning, the Company has considered a worst-case scenario whereby a hard Brexit would take place on 29 March 2019, with
no implementation period and the UK has been unable to make the legislative changes to implement a temporary permissions regime. The Company has planned for the following
three scenarios. Each scenario assumes at some point in the future the claims handling will be brought in-house, and can be administered in Ireland without the Company
requiring authorisation in the UK.
Scenario 1: There is an implementation Period until the end of 2020 – claims handling to continue in the UK until the end of 2019 and then transfer to Ireland.
Scenario 2: The temporary permissions regime is approved by the UK Parliament – claims handling to continue in the UK until the end of 2019 and then transfer to Ireland.
Scenario 3: There is a hard Brexit, with no Implementation Period or temporary permissions regime – claims handling to transfer to Ireland by 30 March 2019.