All European policies must be transferred out of London before the end of the Brexit transition period on 31 December 2020
Lloyd’s has delayed the effective date of its Part VII transfer of policies to Lloyd’s Insurance Company S.A. (Lloyd’s Europe) in Brussels in order to give more time for members and Lloyd’s to get ready.
The Sanctions Hearing is now scheduled for 18 November 2020 and therefore the Scheme Effective date will move from 29th October to 30th December 2020.
This delay to the Part VII transfer will not affect Lloyd’s Europe’s ongoing ability to continue writing new EEA business.
Lloyd’s said that the delay would also “give the maximum amount of time available for the successful implementation of this substantial and complex Part VII transfer”.
Unless specifically excluded, the policies (or parts of policies) to be transferred under the proposed transfer are those where all or part of the risk underwritten at Lloyd’s is located in an EEA state or where the policyholder is resident in the EEA.
Post-Brexit, these policies, or part policies, cannot be managed from the UK without breaching legal or regulatory requirements. The proposed transfer will ensure that EEA policies can be compliantly managed after Brexit, including in relation to the payment of claims.