Lloyd’s puts forward Brexit update

Lloyd’s puts forward Brexit update | Insurance Business

Lloyd’s puts forward Brexit update

With time ticking away, Brexit updates continue to pour in ahead of the UK’s departure from the European Union.

Following last month’s official opening of its Brussels subsidiary, insurance market Lloyd’s of London has announced that the new unit will be able to write proportional treaty reinsurance starting the third month of next year.

This follows an October update which confirmed the Belgian entity’s ability to write facultative reinsurance and non-proportional excess of loss treaty reinsurance beginning 2019.

“We can now confirm that the company will be able to write proportional treaty reinsurance from March 01, 2019, subject to a specific set of technical conditions being met,” said Lloyd’s in the new announcement, which also outlined the technical prerequisites.

It noted that the solution will only be available for managing agents processing treaty in a similar way to delegated authority and which are able to meet the requirements involving scope, set-up, bordereaux reporting, as well as premium and claims settlement.

In terms of scope, for instance, the solution can only be used for European Economic Area (EEA) risks incepting post-March 01.

As for claims settlement, Lloyd’s said all claims payments should be made via central settlement and that non-cash movements will not be permitted.

“Given the short timescales, managing agents wishing to use this solution should register their interest by December 14, 2018, particularly if they are looking to start on March 01, 2019,” it added.