The Bank of Lithuania included Revolut Payments UAB into the list of Insurance Brokers. This happened just one day before the United Kingdom and European Union have reached BREXIT deal allowing smooth UK withdrawal from the EU.
It was the third Fintech license issued for Revolut by the Bank of Lithuania. Lithuanian registered Revolut Payments UAB already holds Electronic Money Institution license issued by the same regulator. Another Revolut company Revolut Technologies UAB currently holds Lithuanian Specialised Bank license. Revolut Payments UAB takes an advantage of the recent amendments of the Lithuanian Law on Insurance, allowing the EMI and other financial license holders provide Insurance Broker services. According to Revolut, decision to choose Lithuania was driven by a favourable environment for foreign companies seeking to launch various financial services in the European Economic Area.
As an authorized Insurance Brokerage Firm Revolut Payments UAB will have the right to engage in insurance mediation authorised by an insurer, a policyholder, an insured person, a beneficiary or an injured third party. Revolut intends to provide services in electronic space and via mobile app. The company plans to sell travel and mobile device insurance.
Lithuania – a gateway for international insurance companies into European insurance market
In the context of BREXIT lot of UK established companies are looking for the opportunities to secure their new licenses allowing to provide financial services in EU/EEA area. Recent amendments in Lithuanian legislation allows financial institutions holding Payment and Electronic Money or other financial licenses to provide Insurance Brokerage services and creates synergy of two different types of financial services. Favourable regulatory environment makes Lithuania attractive jurisdiction for InsurTech and FinTech companies creating innovative insurance products and looking for the access into the European insurance market. Lithuanian license opens all single European Insurance market including big national markets, such as Germany and France. Lithuanian license provides significant competitive advantage and opens EU/EEA insurance market at a significantly lower incorporation and operational costs.
Revolut is not the only UK Fintech company selecting Lithuania as the future base for continental Europe after the Brexit. Contis Group secured Lithuanian Electronic Money Institution license in July, 2019.
You can read more on Contis license at https://ecovis.lt/on-the-eve-of-brexit-uks-contis-group-gets-lithuanian-electronic-money-institution-license/
More information on Insurance company and Insurance Broker licensing at https://ecovis.lt/fintech/insurance-company/