Hard Brexit: Lloyd’s commits to pay all valid claims
Lloyd’s is working on transferring all European Economic Area (EEA) business to Lloyd’s Brussels before the end of 2020 via a Part VII transfer.
In the event that the UK leaves the European Union before then with no transition or implementation period, Lloyd’s underwriters will continue to honour their contractual commitments including the payment of valid claims.
Lloyd’s expects that this will have the support of all European regulators as it goes to the heart of treating customers fairly. In the event that it does not, Lloyd’s will direct its underwriters, or take such other steps, to ensure that contractual commitments are met in full whilst the transfer is being completed.
Lloyd’s approach has the full support of the UK’s Financial Conduct Authority.
Lloyd’s Brussels is authorised to write all EEA business from 1 January 2019.