Insurance group Canada Life has confirmed that the UK’s departure from the European Union has forced it to stop selling annuities to British expats in the bloc.
The company said that this was done ahead of the original Brexit date of 31 March 2019.
Paul Keeble, head of communications at Canada Life, confirmed to International Adviser that this decision was down to European Insurance and Occupational Pensions Authority (Eiopa) guidelines.
They state that insurance companies wishing to conduct business with EU residents post-Brexit would need to apply for permission from each member state in which they want to operate.
He said that this was “something that, at the time, we simply weren’t looking to do”.
Fairer
“Given we could still sell annuities outside the EU, we felt it fairer and clearer to simply state we wouldn’t sell to non-residents, much in line with our competitors,” Keeble added.
“Fortunately, the Eiopa guidelines also makes it clear that existing arrangements are not affected, so our existing customers who are non-residents are fine.”
Canada Life confirmed it has 10,000 annuity customers based overseas.
Stranded customers
Keeble said that if a customer in the UK has an annuity with Canada Life, this will not prevent them moving abroad.
The company will continue paying their monthly income to a UK nominated bank account.
British expats in the EU looking to purchase an annuity in the UK, however, could be out of luck.
As Keeble admitted he is “unaware of any other provider able to offer annuities to non-residents living in the EU”.
