The Financial Conduct Authority (FCA) chief Andrew Bailey said it was down to firms to keep to its handbook rules on communication.
In a letter to the Association of British Insurers he said: “Firms need to consider what impact withdrawal from the EU may have on their own customers and the operation of contracts they offer.
“Firms must also consider all the relevant requirements in our handbook for their contracts, including those relating to the information firms are required to give to their customers.”
“In relation to withdrawal from the EU, firms will need to keep under review what, if anything, needs to be brought to customers’ attention when buying or renewing a policy. Where changes to how policies operate are dependent on the final legal agreement reached by the UK and EU, firms may wish to provide this information in good time, once it is available. Where the information is not currently available firms may wish to do this separately to new business and renewal communications,” he said.
It has been previously mooted that insurers would not be able to guarantee continuity of service in the event of Brexit if they lost passporting rights
The ABI has also highlighted the risk posed to insurance contracts covering Europe in the event of Brexit.
On UK firms offering insurance in the EU Bailey said: “Firms should continue to make appropriate arrangements to service their clients in the EU and engage with their local EU regulatory authority for guidance”.
