The specialist Lloyd’s of London insurance and reinsurance market has confirmed that its post-Brexit European base in Brussels, Belgium will be able to write proportional treaty reinsurance from 1 March 2019.
Lloyd’s Brussels, which is due to launch next month, was already set to commence writing and processing facultative reinsurance and non-proportional excess of loss treaty reinsurance from 1 January 2019.
It had previously been expected to begin writing all treaty reinsurance, including proportional treaty business, from 1 January 2020, although Lloyd’s had said that it was investigating a solution to enable it to start earlier.
The Brussels subsidiary will now be able to write proportional treaty business specifically for EEA risks incepted after 1 March 2019, subject to a set of technical conditions being met.
For example, the solution will require managing agents to use an authorised coverholder (or service company) to perform all proportional treaty specific processing, which will enter into a Coverholder Appointment Agreement (CAA) with Lloyd’s Brussels.
The coverholder or service company will also have to produce monthly bordereaux for risk, premium and claims, which will be submitted through the DXC Technology and Binding Authority Registration (BAR) systems.
Given the short timescale of this announcement, Lloyd’s urged managing agents wishing to use the solution to register their interest by 14 December 2018.