Lloyd’s, the global insurance and reinsurance market, has announced the successful opening of its Belgium insurance company, marking a new chapter in its Brexit preparations.
Lloyd’s had announced previously that it was working towards the transfer of all European Economic Area business to Lloyd’s Brussels before the end of 2020 via a Part VII transfer.
“Lloyd’s is ready for Brexit with Lloyd’s Brussels now officially open for business,” said Lloyd’s Chairman, Bruce Carnegie-Brown.
“Our decision to set up an insurance company in Brussels has provided certainty to our partners and customers throughout Europe, reassuring them that they can continue to benefit from Lloyd’s specialist expertise and financial security post-Brexit. We are already working with our partners on 2019 policies, and Lloyd’s Brussels is now placing and processing European risks.”
“Now that Lloyd’s Brussels is operational, we are looking forward to the new opportunities that we will have to grow our business with European customers through a locally staffed, locally regulated and locally capitalised insurer.”
“By using electronic placement and digital data capture, Lloyd’s Brussels offers its partners in Europe the very best that Lloyd’s has to offer in an easily accessible and cost-effective way.”
Lloyd’s explained that from 1/1 2019 its Brussels subsidiary will be able to write non-life insurance across the European Economic Area (EEA), and it is expected that reinsurance can continue to be written from London after the UK leaves the EU.
Although, in the case of no equivalence, Germany and Poland are an exception, as these countries would not allow cross-border reinsurance with countries not granted equivalence by the EU. Lloyd’s notes that while the UK would meet the criteria for equivalence, it remains unclear when it would be secured.
According to Lloyd’s, while its Brussels unit is licensed to write reinsurance across the EEA, it is currently not in a position to process treaty business through its Brussels subsidiary from 1 Jan 2019, although it is in the process of developing the capability to do this in the future, and is also able to process facultative reinsurance business through the unit from 1/1.