Lloyd's pushes back Brexit Part VII transfer to year end
Lloyd's has decided to delay the effective date for the transfer of certain European business (EEA Policies) to its Brussels subsidiary to the end of the year, in order to give more time to market participants and Lloyd's to get ready.
The Part VII transfer of certain policies from Lloyd's of London to Lloyd’s Insurance Company S.A. (Lloyd’s Europe) in Brussels was earlier scheduled for October 29, 2020.
The policies to be transferred under the proposed transfer are those where all or part of the risk underwritten at Lloyd’s is located in an EEA state or where the policyholder is resident in the EEA (EEA Policies). Post-Brexit, these policies cannot be managed from the UK without breaching legal or regulatory requirements, as the current EEA passporting is expected to cease at the end of the transition period on December 31, 2020.
The proposed transfer will ensure that EEA policies can be compliantly managed after Brexit, including in relation to the all-important payment of claims.
Lloyd's stated that the decision to delay the effective date was taken following discussions with managing agents, wider market consultation and in the context of the overall programme plans.
It said, "the decision has been made to enable the market participants, Lloyd’s and Lloyd’s Insurance Company S.A. (LIC) to be ready and to give the maximum amount of time available for the successful implementation of this substantial and complex Part VII transfer".
Lloyd's added that this delay to the Part VII transfer will not affect LIC’s ongoing ability to continue writing new EEA business.
