Insurance marketplace Lloyd’s of London, which has to move certain policies to Brussels-based Lloyd’s Insurance Company S.A. (LIC) because of Brexit, has announced a delay in the process.
Originally slated to be effective on October 29, the Part VII transfer of European Economic Area (EEA) policyholder business to LIC will instead come into effect on December 30. In an update, Lloyd’s said the sanctions hearing is now scheduled for November 18.
“Following ongoing discussions with managing agents, wider market consultation, and in the context of the overall programme plans, Lloyd’s has taken the decision to delay the Part VII scheme effective date,” noted the centuries-old exchange.
“This decision has been made to enable the market participants, Lloyd’s, and Lloyd’s Insurance Company S.A. to be ready and to give the maximum amount of time available for the successful implementation of this substantial and complex Part VII transfer.”
The policies, or parts thereof, that will be transferred are those where all or part of the risk underwritten is located in an EEA state or where the policyholder is an EEA resident. It’s been stressed that these policies cannot be managed from the UK, post-Brexit, without breaching legal or regulatory requirements.
Lloyd’s, meanwhile, has confirmed that the delayed Part VII transfer will not impact LIC’s ongoing ability to continue writing new EEA business.