Lloyd’s Brexit Transfer Notification Instructions to Market Participants

Certain United Kingdom (UK) insurers that are Lloyd’s Members, currently enjoy European Economic Area (EEA) ‘passporting’ rights to enable policies to be serviced within Europe without the need for further authorisation.

As a consequence of the UK’s exit from the European Union (‘Brexit’) on 31 January 2020, current EEA passporting are expected to cease at the end of the transition period on 31 December 2020. Lloyd’s is therefore proposing, on behalf of the Members, to transfer certain policies from the Members to Lloyd’s Brussels (the “proposed transfer”). Lloyd’s Brussels is a regulated insurance company wholly-owned by Lloyd’s and is incorporated in Belgium.


The policies that transfer will be 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, such that the policy could not be compliantly serviced post Brexit from the UK. If the proposed transfer does not happen, there can be no certainty that it would be possible to pay claims of this type. Where a policy contains both EEA and non-EEA risks, it is only the EEA part of the risk that transfers.


EEA policies that are subject to the licensing regime in Canada, Australia, Hong Kong Singapore, South Africa and Switzerland will not, however, transfer.

Please note that the transfer of reinsurance contracts using Part VII of the Financial Services and Markets Act 2000 will only impact German cedents. Other reinsurance contracts will not be impacted by the Part VII transfer.


For the full definition of the transferring policies, please see the Scheme document which will be published on the Part VII website,, from 15 June 2020.

Lloyd’s Brussels and the members of each syndicate will also enter into a quota share reinsurance arrangement under which the economic liability of each syndicate’s transferring policies will, from the effective date of the proposed transfer, be fully reinsured back to the members of that syndicate (the “Lloyd’s Brussels Reinsurance Contract”).


Outwards reinsurance arrangements relating to transferring policies will not transfer but instead sanction will be sought from the Court for them to be converted to retrocession contracts attaching on top of the Lloyd’s Brussels Reinsurance Contract.


The proposed transfer is to be implemented by a court sanctioned insurance business transfer scheme under Part VII of the Financial Services and Markets Act 2000 (“FSMA 2000”).


The proposed transfer will not change terms and conditions of any policy, except that Lloyd’s Brussels will become the insurer and Data Controller in respect of the transferred policies.


Further information about the proposal (including whether it could affect your pre-transfer position), which policies are transferring, your rights and what you need to do can be found at