Lloyd’s said it is working on transferring all European Economic Area (EEA) business to its EU headquarters, Lloyd’s Brussels, before the end of 2020 via a Part VII transfer.
Part VII transfers, in part, enable a U.K. insurer to transfer its cross-border contracts into an EU subsidiary.
In the event that the U.K. leaves the European Union before then with no deal, or no transition or implementation period, Lloyd’s underwriters will continue to honor their contractual commitments including the payment of valid claims, Lloyd’s said in a statement on Tuesday, Oct. 9.
Lloyd’s expects that this plan will have the support of all European regulators as it goes to the heart of treating customers fairly. 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 while the transfer is being completed.
Lloyd’s said its approach has the full support of the U.K.’s Financial Conduct Authority.
Lloyd’s Brussels is authorized to write all EEA business from Jan. 1 2019. (The EEA includes the 28 EU member states as well as three members of the European Free Trade Area (EFTA): Iceland, Liechtenstein and Norway.)
*This ran previously in our sister publication Insurance Journal.