Lloyd’s of London moves ahead with Brexit transfer plan

Specialist re/insurance market Lloyd's of London has received approval from the High Court of England and Wales for its Part VII strategy for notifying policyholders about the proposed transfer of its European business to Lloyd's Brussels, the market's new Brexit subsidiary.

This approval follows Lloyd’s decision to transfer the market’s existing European business which will be affected by the loss of passporting rights from Lloyd’s members to Lloyd’s Insurance Company S.A (Lloyd’s Brussels).

The approval means Lloyd's can now notify policyholders its detailed plans to ensure that they understand the transfer process, as well as providing assurance of the validity of their policies being transferred to Lloyd’s Brussels.

Lloyd’s, in conjunction with market participants, will begin notifying customers of the Part VII transfer from the middle of June.

It said, customers will receive a letter outlining the details, such as an explanation of the proposed transfer; the Scheme document; the Independent Expert’s report on the impact of the Part VII on policyholders; the formal Legal Notice of the proposed transfer; a set of Frequently Asked Questions; and details of how policyholders can contact Lloyd’s.

Customers will be able to ask questions or raise any objections they may have until the date of the sanctions hearing, currently scheduled for 1 October 2020.

Sonja Rottiers, Lloyd’s Brussels CEO, said: “This is another key step in ensuring that, despite Brexit, Lloyd’s customers across the EEA can continue to benefit from the financial security of the Lloyd’s market and their existing policies can continue to be serviced by Lloyd’s Insurance Company S.A., including the payment of valid insurance claims.”