Lloyd’s Part VII transfer moves ahead to ensure continuity of cover for customers
High Court of England and Wales approves Lloyd’s strategy.
Lloyd’s, the world’s leading (re)insurance market, today confirmed it has received approval from the High Court of England and Wales* for its Part VII strategy for notifying policyholders about the proposed transfer. This includes detailed plans to ensure customers understand the transfer process, as well as providing assurance of the validity of their policies being transferred to Lloyd’s Insurance Company S.A. (Lloyd’s Brussels).
This announcement follows previous confirmation that Lloyd’s would be transferring the Lloyd’s market’s existing European business which will be affected by the loss of passporting rights from Lloyd’s members to Lloyd’s Insurance Company S.A.
This is another key step in ensuring that, despite Brexit, Lloyd’s customers across the EEA 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.”Sonja Rottiers, Lloyd’s Brussels CEO
Lloyd’s, in conjunction with market participants, will notify customers of the Part VII transfer, starting from the middle of June. Customers will receive a letter outlining the details of the transfer and providing links to a dedicated Part VII Lloyd’s website Lloyds.com/brexittransfer (going live on 15 June) where they will find:
- an explanation of the proposed transfer;
- the Scheme document (and a summary of it);
- the Independent Expert’s report (and a summary of it) on the impact of the Part VII on policyholders;
- the formal Legal Notice of the proposed transfer, which will be publicised in UK and EEA newspapers;
- a set of Frequently Asked Questions; and
- details of how policyholders can contact Lloyd’s.
In addition to the main English site there will be dedicated webpages in German, Spanish, French, Italian and Dutch, containing translations of all these key documents.
Customers will be able to ask questions or raise any objections they may have until the date of the sanctions hearing, currently scheduled for 1 October 2020.
* The Directions hearing for the transfer took place on 12 May 2020 at the High Court of England and Wales where the primary outcome was the approval of Lloyd’s strategy for notifying policyholders and other interested parties of the proposed transfer.
What is a Part VII Transfer and what is the proposed timing
The Part VII transfer to Lloyd’s Insurance Company S.A. ensures that Lloyd’s can service existing policies and pay claims after Brexit.
Lloyd’s has designed a scheme which enables Lloyd’s EEA insurance policies underwritten between 1993-2020 to be transferred to Lloyd’s Insurance Company S.A.
The proposed effective date is 29 October 2020.
Lloyd’s has mobilised the Part VII Programme in two parts – the Part VII Court Process and the Part VII Implementation Process and Lloyd’s has been making good progress in developing and resourcing these workstreams.
Lloyd’s is the world’s leading insurance and reinsurance marketplace. Through the collective intelligence and risk-sharing expertise of the market’s underwriters and brokers, Lloyd’s helps to create a braver world.
The Lloyd’s market provides the leadership and insight to anticipate and understand risk, and the knowledge to develop relevant, new and innovative forms of insurance for customers globally.
It offers the efficiencies of shared resources and services in a marketplace that covers and shares risks from more than 200 territories, in any industry, at any scale.
And it promises a trusted, enduring partnership built on the confidence that Lloyd’s protects what matters most: helping people, businesses and communities to recover in times of need.
Lloyd’s began with a few courageous entrepreneurs in a coffeeshop. Three centuries later, the Lloyd’s market continues that proud tradition, sharing risk in order to protect, build resilience and inspire courage everywhere.
About Lloyd’s Insurance Company S.A. (Lloyd’s Brussels)
Lloyd’s Insurance Company S.A. is a fully functional insurance company, able to write non-life risks from all 30 EEA countries via our current distribution channels, brokers, coverholders, and managing agents. It is backed by a reinsurance arrangement with Lloyd’s syndicates, ensuring that it can maintain access to the Lloyd’s central fund and financial ratings.
Authorised and regulated by the National Bank of Belgium, and fully Solvency II compliant, Lloyd’s Insurance Company S.A. has been accepting risks incepting from 1st January 2019 to ensure our customers continue to have seamless access to the Lloyd’s market.