Canada Life admits unawareness regarding any insurance provider offering annuities to non-residents
The aftermath of Brexit is likely to have a significant impact on financial service providers like Canada Life. The Canadian insurance firm has stopped the sale of its annuities to British expats in the EU.
According to the insurer, the step was taken prior to the original Brexit date (31 March 2019).
Canada Life is citing European Insurance and Occupational Pensions Authority (Eiopa) guidelines as the primary reason behind this move.
As per the Eiopa guidelines, insurance companies would require individual licenses from member states to continue operations in the respective countries post-Brexit.
Canada Life will continue selling annuities in other markets except for the EU. It is important to note that most of Canada Life’s competitors are following a similar trend of limiting their offerings for non-residents.
The Eiopa guidelines state that these rules do not affect the existing arrangements with non-residents, allowing companies to continue working with current clients.
As per the latest company records, Canada Life has over 10,000 existing annuity customers abroad.
For customers residing in the UK with an annuity from the insurer, Canada Life will continue disbursing the monthly payments to any UK nominated bank account. It will give its existing customers the freedom to move anywhere they please.
On the contrary, British expats residing in the EU will no longer be able to buy an annuity in their home country.
There is very little awareness about any insurance provider selling annuities to non-residents at the moment.