On the 28 October 2019, the EU granted a flextension until 31 January 2020 for Brexit. Similar to the prior extension, this is intended as a longstop date and it is therefore possible that the UK will leave the European Union (EU) prior to this date.
In this briefing note, we provide an update on how Miller and the wider insurance community is responding to the challenges presented by Brexit.
What is Miller doing to address this?
Our aim has been to put an adaptable solution in place which allows us to continue to offer our clients the same market-leading offering and high standard of service that they expect from us.
We have formed a Belgian company, Miller Europe SPRL (ME), which the Belgian regulatory authority, the Financial Services and Market Authority, has confirmed is registered as an insurance and reinsurance intermediary in Belgium. ME, a Lloyd's accredited broker, has been granted passporting rights from Belgium into all other EEA member states and branch offices in London and Paris have been established.
This platform provides us with flexibility to accommodate whatever the outcome of the EU’s deliberation on the interpretation of insurance laws and regulation. We are prepared for any scenario and will be ready to handle the business of those clients situated in the EEA via our new EU subsidiary. Miller Insurance Services LLP remains our principal trading firm for servicing our clients but we will be able to service our EEA clients, as necessary, through ME, which is a wholly owned subsidiary of the Miller Group. Miller client contacts will remain the same as they are today, regardless of where those individuals are based, so there will be no disruption to the service we offer our clients, other than our clients having ME as their appointed broker for certain risks.
What are (re)insurers doing to address this?
Many (re)insurers have been publishing details of their contingency plans or of their intentions, and may have been in contact directly to inform and give assurance to policyholders that suitable measures are in place to allay such concerns. We are maintaining a keen interest in how these solutions develop and the state of readiness of (re)insurers in order to understand their preparedness on behalf of our clients.
What action has Lloyd’s taken?
Lloyd’s has been particularly proactive with its plans, and has invested time engaging with Managing Agents and Lloyd’s brokers to deliver its solution. Lloyd’s will operate a fully capitalised insurance company (LIC) domiciled, authorised and regulated in Belgium and licensed to write risks domiciled in EEA states.
The process of broking a risk to LIC will largely remain unchanged for brokers as Managing Agents in London will have delegated authority from LIC to underwrite business on its behalf.
How we can help you
As ever, Miller’s focus remains on our clients, and we will be providing the necessary support through this complex process.
Miller will be issuing a Know Your Client (KYC) pack, with as much notice as possible, to those relevant parties which will provide all necessary details relating to Miller Europe.
We continue to monitor the situation closely and should you have any questions or concerns about Brexit and wish to discuss them further, please email email@example.com or talk to your usual contact at Miller.