Lloyd’s has announced that it is working towards the transfer of all European Economic Area 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.
Following Britain’s vote to leave the EU and the subsequent lack of clarity and uncertainty surrounding the future of the financial services sector, numerous companies have established hubs in remaining EU member states in order to ensure continuity in a post-Brexit world.
Lloyd’s anticipates to have the support of all European regulators but, 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, while Lloyd’s Brussels is authorised to write all EEA business from 1 January 2019.