Brexit: Lloyd's edges forward with Part VII transfer

Notification strategy secures High Court approval
Brexit: Lloyd's edges forward with Part VII transfer
INSURANCE NEWS
By Terry Gangcuangco
May 27, 2020

Anyone remember Brexit? Lloyd’s of London sure has not forgotten – announcing this week a step forward in its Part VII transfer to Lloyd’s Insurance Company S.A. in Belgium to allow the (re)insurance marketplace to service existing European policies and pay claims 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 for notifying 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.

Starting middle of next month, in conjunction with market participants, the centuries-old exchange will notify customers of the transfer via a detailed letter as well as a dedicated Part VII Lloyd’s website that will go live on June 15. Aside from the main English site, there will also be dedicated webpages in German, Spanish, French, Italian, and Dutch.

“This is another key step in ensuring that, despite Brexit, Lloyd’s customers across the EEA (European Economic Area) 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,” said Lloyd’s Brussels chief executive Sonja Rottiers.

The proposed effective date of the transfer is October 29, 2020.

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