How does Brexit affect CLIAI policyholders?
Your policy will remain valid and enforceable and the terms and conditions of your policy will remain unchanged. CLIAI will continue to be authorised and regulated by the Central Bank of Ireland, the supervisory authority for Irish insurance companies.
However, UK resident policyholders will no longer be covered by the UK Financial Services Compensation Scheme. Policyholder protection schemes such as the FSCS are only relevant should CLIAI become unable to meet its liabilities and the customer suffers loss as a result. You can be reassured that CLIAI is a well-capitalised company and benefits from being part of a strong financial services group. Its parent, the Great-West Lifeco Group, had over £987bn in consolidated assets under administration as at 30 June 2020, and we are confident that the risk of policyholder loss from being unable to meet our financial commitments is remote.
Will CLIAI continue to be open to new business?
Yes, absolutely, we remain open to new business.
Will Brexit impact the terms and conditions of my policy?
No, your policy remains valid and enforceable and the terms and conditions of your policy will remain unchanged provided you remain resident in the UK. Please get in touch with us if you have become resident, or are planning to become resident, in a different country.
Will Brexit change the service that Canada Life International Assurance (Ireland) DAC provides?
No, there will be no change to the service we provide to you.
Can I continue to make withdrawals from my Canada Life International Assurance (Ireland) DAC policy?
Yes, the terms and conditions of your policy will not change as a result of Brexit.
Is my policy safe and secure?
Your policy is safe and secure, but please note that UK resident policyholders will no longer be covered by the UK Financial Services Compensation Scheme should CLIAI become unable to meet its liabilities. However, choosing a financial provider is about having the confidence your money will be safe and secure for years to come, regardless of economic conditions.
CLIAI is part of Great-West Lifeco, one of the largest life insurance organisations in the world, with interests in life insurance, health insurance, investments, retirement savings and reinsurance. The ethos of our parent company, and their focus on putting the long-term needs of customers first, prevails throughout our businesses, and is one of the reasons why we have successfully looked after the financial futures of so many clients for so many years.
Together with Great-West Lifeco’s other subsidiaries, we serve the financial needs of more than 30 million customers and have more than £987 billion in assets under administration (at 30 June 2020). CLIAI is well-capitalised and benefits from being part of this strong global group, so you can be confident that the risk of CLIAI being unable to meet its financial commitments is remote.
All of Canada Life International’s businesses achieved a five-star financial strength rating from actuarial consultancy AKG in 2020 for the 18th consecutive year, the only offshore insurer to do so.
Is there any change to the taxation of a CLIAI DAC policy?
No. There is no change to the taxation of the policy or the VAT exemption in relation to any Discretionary Fund Management Services as a result of Brexit.
What happens if I bought my policy in the UK and have since moved abroad?
Please get in touch with us if you have become resident in a different country. We also recommend that you contact your professional adviser.
What impact will Brexit have on the value of investments held in my policy?
We cannot provide advice on how Brexit might affect the value of your investments. Investments are generally for the medium to long term and values can fall as well as rise and you should speak to your professional adviser before making any investment decisions.
What insurance policyholder protection is in place in Ireland?
Although there is no formal insurance policyholder compensation scheme in Ireland there is a robust regulatory framework in place to protect CLIAI’s customers:
- CLIAI is authorised and regulated by the Central Bank of Ireland (CBI), the supervisory authority for Irish insurance companies.
- CLIAI only writes unit linked business, which means when a policyholder pays a premium, this immediately creates a matching liability. CLIAI is required to hold reserves separately from all other assets of the company to cover liabilities to policyholders.
- Irish law and regulation that governs the winding up of life companies means that policyholders’ liabilities must be paid ahead of any other claims of the life assurance company other than the cost of winding up the company.
- As an Irish regulated life assurance company, CLIAI is required to segregate policyholder assets from those of shareholders so they cannot be used to support its financial position.
- The types of assets CLIAI can hold are restricted in order to limit exposure to riskier or more volatile assets.
- EU legislation requires CLIAI to hold a solvency capital requirement (SCR) calculated using a risk-based approach. CLIAI must hold assets at least equal to the value of the SCR.
- CLIAI is required to make annual solvency submissions to the CBI and is subject to regular internal and external audit and inspection.
- The CBI has powers of intervention if they are concerned about the solvency of a life assurance company.
- CLIAI is regularly reviewed by the CBI to ensure it meets the legal and regulatory requirements in Ireland.
Will there be any tax consequences of Brexit?
Potential tax consequences are something that you should discuss with your professional adviser who will have the best understanding of your personal financial situation.
Where can I find out more information?
We recommend that you contact your adviser who will have the best understanding of your personal financial situation.
Other useful sources of information include:
