The specialist Lloyd’s of London re/insurance marketplace has received approval from the High Court of England and Wales for its Part VII strategy for notifying policyholders about the proposed transfer of its existing European business to Lloyd’s Brussels.
Lloyd’s announced in March of 2017 that it had selected Brussels as its new European Union (EU) home to ensure continuity for clients in light of the UK’s Brexit vote and related loss of passporting rights.
The specialist re/insurance market announced plans to transfer its existing European business which will be affected by the loss of passporting rights from Lloyd’s members to its new Brussels subsidiary.
The Part VII transfer is a transfer of business or parts of a business under Part VII of the Financial Services & Markets Act 2000 in the UK, and has been widely used by carriers to ensure operational continuity in a post-Brexit world.
Lloyd’s has today revealed that its Part VII transfer has moved forwards after the receipt of strategy approval from the High Court of England and Wales. This approval includes detailed plans to ensure customers understand the transfer process, and also providing assurance of the validity of their policies being transfered to Lloyd’s Brussels.
The Chief Executive Officer (CEO) of Lloyd’s Brussels, Sonja Rottiers, commented: “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.”
Lloyd’s, as well as market participants, will notify customers of the transfer starting from the middle of next month. Customers are set to receive a letter detailing the transfer and providing links to a dedicated Part VII Lloyd’s website.
The marketplace adds that customers will be able to ask questions or raise any concerns they might have until the date of the sanctions hearing, which is currently scheduled to take place on October 1st, 2020.