- Lloyd’s market insurance business ‘Brexit’ transfer scheme sanctioned by the High Court (Society of Lloyd’s, Re (Part VII of the Financial Services and Markets Act 2000))
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- The purpose of the scheme
- Reinsurance converted to retrocession using FSMA 2000, 112(1)(d)
- The effect of the scheme upon reinsurers
- Outsourcing arrangements
- Case details
Insurance & Reinsurance analysis: On 30 November 2020, Mr Justice Snowden handed down his judgment setting out the reasons for sanctioning the ‘Brexit’ insurance business transfer scheme sought by the Society of Lloyd’s (Lloyd’s) on behalf of its members to a wholly owned Belgian subsidiary of Lloyd’s, Lloyd’s Insurance Company SA (LIC). Without the scheme, Lloyd’s members would not be able lawfully to perform their insurance obligations after the UK’s exit from the EU and the end of the transitional period on 31 December 2020. The case marks the last in a long line of Part VII of the Financial Services and Markets Act 2000 (FSMA 2000) insurance business transfers to address the risk of policyholders being materially prejudiced as a result of their insurers’ loss of passporting rights after Brexit, and possibly one of the most complex of FSMA 2000, Pt VII Brexit transfers, concerning as it did the Lloyd’s market. Written by Charlotte Eborall, barrister, at 3 Verulam Buildings.
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