The Republic of Cyprus is getting ready for the possibility of a no-deal Brexit and prepares at the same time relevant legislative texts. Legislation is currently drafted to fill gaps in the insurance and health sectors.
Priority is given to filling legal gaps in the supervision of insurance/reinsurance undertakings by providers from the United Kingdom currently operating in the Republic of Cyprus under the status of free establishment.
In the case of no-deal Brexit, providers from the UK will come under the category of those from third countries. And in order for them to continue with existing work, they will need to apply for a work permit.
However, licensing is a time-consuming and costly process and until they do get a permit these businesses will not be able to serve existing insured clients/beneficiaries. This means their clients will become trapped.
The amended bill introduces Article 422A which provides that such insurance undertakings can continue to have existing contracts in place, settle outstanding claims, collect premiums owed to them, and satisfy all obligations within the normal way of doing business for a transitional period of two years from the date the UK leaves the EU.
Similar amendments are also introduced in the provision of insurance/reinsurance undertakings distributors so as to ensure the smooth completion of existing contracts.
In the health sector, the relevant Ministry has drafted a bill harmonising the right to exercise a regulated health profession in the Republic in the event of a no-deal Brexit. Within this framework, the necessary legislation is introduced harmonising conditions and formalities governing the Registry of regulated health professions.
The bill also safeguards the right to practice the health profession in the Republic.