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Lloyd’s Part VII transfer announcement

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    • Law
    • Regulation & Compliance

As a result of the decision for the UK to leave the EU, it is assumed that UK incorporated insurers, including Lloyd’s Underwriters, will lose their current EU passporting rights...

 This means that Lloyd’s Underwriters will not be able to manage and service previously issued EEA policies, and global policies with EEA exposures, after the UK’s exit from the EU has become effective.

Lloyd’s is proposing to transfer certain EEA insurance policies to Lloyd’s Insurance Company S.A. in Belgium (Lloyd's Brussels) under a Part VII transfer arrangement. The proposed transfer will not change terms and conditions of any policy, except that Lloyd’s Brussels will become the insurer in respect of the transferred policies. Non-life Direct EEA and Inwards German Reinsurance policies which had a start date of 1993 to 2018 will transfer to Lloyd’s Brussels.

The Part VII transfer to Lloyd’s Insurance Company S.A. in Belgium, allows the (re)insurance marketplace to service existing European policies even with the loss of passporting rights as a result of the UK’s departure from the European Union.

Lloyd’s has received approval from the High Court of England and Wales for its Part VII strategy to notify policyholders about the proposed transfer. The strategy spans comprehensive plans to ensure customers understand the transfer process, as well as providing assurance of the validity of their policies being transferred to Lloyd’s Brussels. 

Further information about the proposal (including whether it could affect your pre-transfer position), which policies are transferring, your rights and what you need to do can be found at https://www.lloyds.com/brexittransfer.