Lloyd’s Part VII Brexit Transfer
With Brexit, current EEA insurance passporting is expected to cease at the end of the transition period (currently due to occur on 31 December 2020). Lloyd’s is therefore proposing, on behalf of the members of Lloyd’s, to transfer certain policies from the members to Lloyd’s Brussels. Lloyd’s Brussels is a regulated insurance company wholly-owned by Lloyd’s and is incorporated in Belgium.
The proposed transfer is to be implemented by an insurance business transfer scheme under Part VII of the UK Financial Services and Markets Act 2000 sanctioned by the English High Court, and will not change terms and conditions of any policy, except that Lloyd’s Brussels will become the insurer (and the data controller under data protection law) in respect of the transferred policies.
The policies that transfer will be 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, such that the policy could not be compliantly serviced post Brexit from the UK. Where a Lloyd’s policy contains both EEA and non-EEA risks, it is only the EEA part of the risk that transfers. Lloyd’s EEA policies that are subject to the licensing regime in Canada, Australia, Hong Kong Singapore, South Africa and Switzerland will not, however, transfer under these arrangements.
Further information about the Lloyd’s proposal, which policies are transferring, your rights and what you need to do, can be found at https://www.lloyds.com/brexit-transfer.