The agreement is concluded as the rules of the EEA Agreement no longer apply to the United Kingdom and provides for future arrangements regarding the rights in the field of social security, mainly pension rights and health insurance for those who travel or move between the countries. It covers all persons who are subject to the legislation of the countries and are legally resident there when they travel or move between the Contracting States. According to the agreement, it will be possible to receive an old-age pension gained after the entry into force of the agreement, if you live in another Contracting State and use periods of insurance from another Contracting State to a certain extent to enter the insurance system of the countries earlier when you move between the countries.

Upon the entry into force of the agreement, European health insurance cards issued in Iceland will be re-validated in the UK and university students from the EEA/EFTA countries studying in the UK will be able to apply for reimbursement of health care fees, which is a fee levied by the UK in connection with applications for work and residence permits.

The agreement is based on the existing agreement between the UK and the EU in this area, which Norway and Liechtenstein signed as well.

The aim is for the agreement to take effect in Iceland before the end of the year.