19 March 2018Insurance

XL Catlin introduces Brexit continuity clause

XL Catlin’s London-based insurance operations have introduced a contract continuity clause which addresses the risk that contracts written prior to Brexit may become impermissible assuming passporting rights are lost as a consequence of the UK leaving the EU.

The clause is intended to be included in insurance policies written by Catlin Insurance Company (UK), (CICLUK) – a PRA and FCA regulated insurance company – and XL Catlin’s syndicate 2003 at Lloyd’s. These two entities will remain in the UK after XL Insurance Company SE (XLICSE) – the main insurance company platform for XL Group within Europe and Asia – moves to Dublin, Ireland, subject to regulatory approvals. The move means that XLICSE’s policies do not need to rely on the clause.

The clause mirrors standard London Market continuity clauses, with some key differences. The clause makes XLICSE an additional party to the policy from inception as a contingent insurer with the aim of providing continuity of cover for clients. If post Brexit a policy’s performance becomes impermissible in whole or in part and cannot be amended to enable CICLUK or the Syndicate 2003 to perform it permissibly, XLICSE (assuming that XLICSE has moved to Dublin within the time period expected) will automatically and seamlessly be contractually obliged to perform it or any part of it, assuming it can do so permissibly.

If XLICSE cannot perform the policy, only then is it automatically cancelled with a pro-rata return of premium (subject to no claims having been notified).

“Our innovative clause offers significant advantage by minimising the risk that policies will be cancelled, by making XLICSE a contingent party to the policy,” said Paul Greensmith, UK country leader & director of London Market wholesale, XL Catlin. “Effectively, XLICSE will act as a back-up. A political solution may yet be forthcoming that ensures polices can be performed post Brexit, but in the absence of one we believe this clause gives our clients and brokers the certainty they expect and deserve from their insurance partner.”

Join us at Intelligent Automation in Insurance - London 2018. Spring Special:  Book before March 31st and save £200. 

More of today's news

Arch Capital appoints new CEO

Generali prefers ILS for windstorm protection

QBE reshuffles roles; CIO resigns

Pembroke’s GIC Syndicate April launch approved

AmTrust posts $350m loss as it goes private

Talanx targets €850m profit in 2018

Insurtech FIGO secures $4m investment

Liberty Specialty creates new senior role for Xchanging exec

Don't miss our insurtech email newsletter - sign up today

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk

More on this story

13 March 2018   Re/insurer XL Catlin has appointed Urs Uhlmann as CEO, country manager for Canada. He joins the business after serving five years as CEO global corporate for Zurich Canada.
12 March 2018   Re/insurer XL Catlin, through its Catlin Singapore unit, is joining the InsurTech Asia Association as one of its founding members.
3 April 2018   XL Catlin’s insurance unit has made several promotions and appointments in its global life, accident and health teams in the UK.