The London and International Insurance Brokers’ Association has welcomed Lloyd’s assurance that it would continue to honour policies in the event of a ‘no deal’ Brexit.
On Tuesday, Lloyd’s assured EU27 policyholders it would continue to pay out on valid claims if the UK leaves the European Union without there being a transition or implementation period in place.
Liiba’s chairman, Roy White, pictured, said it welcomes “the Lloyd’s statement of intent with regard to the payment of claims in the event that the UK leaves the EU without a transition or implementation period”.
He added: “Having the fair treatment of customers front and centre of the market’s focus is exactly right, and the support of the [Financial Conduct Authority] in this position illustrates the importance of maintaining confidence in the market through this period of uncertainty.”
Lloyd’s is in the process of establishing a subsidiary in Brussels to handle European Economic Area business, though this will only be open for business from 1 January 2019.
Existing policies from EEA countries will be transferred to the new subsidiary – something that will be achieved through a Part VII transfer.
However, the process could take months to accomplish, leaving policyholders uncertain of where they stand in the interim and prompting Tuesday’s assurance from Lloyd’s.
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