Menu
Empowered Expertise
  • People Finder

    Find the right expert to suit your requirements from the boxes below

Your questions answered

Q 1. How is TMK preparing for trading after Brexit?

A. Our main aim is for our world post Brexit to be business as usual so far as is possible. We want to operate seamlessly for our brokers, clients and customers; and internally across our business. 

To ensure we can continue to write business across Europe we will maintain two platforms as we do now. We also intend to continue writing business classes that we currently offer in Europe.

We have set up a new insurance operation in Luxembourg in partnership with TMHCC. This will handle our European corporate business after Brexit. For our syndicate business we plan to use the Lloyd's Brussels Subsidiary (LBS) that is being set up to handle European risks. For both platforms we are aiming to be ready to write business from 1 January 2019. We will continue to transact all non-EEA business as we do now.

With all these arrangements in place we will be able to continue servicing our clients whatever the outcome of the Brexit negotiations.

Q 2. Why choose Luxembourg?

A. We chose Luxembourg as the base for our new insurance company for a number of reasons. These include its physical location, its economic background and stability and the fact that it has an experienced and well-respected regulator - the Commissariat aux Assurances (CAA). Together these give us an ideal business environment from which to operate our European business with the minimal disruption to our existing customers and brokers. 

Q 3. What is a part VII transfer?

A. This is a legal process that allows us to transfer insurance policies from one legal entity to another; in this case from TMKI to the new Luxembourg insurance company TME. We need to gain High Court approval to do this and your clients’ policies are fully protected throughout. Our proposed transfer is expected to take place in the final quarter of 2018, in time for policy renewals and new business to be written from 1 January 2019.

Q 4. When will the transfer of business take place?

A. We are aiming to complete the Part VII transfer of our Company platform business in the last quarter of 2018. Before that we will be contacting coverholders, brokers, policyholders with outstanding claims and reinsurers to give them more information about the transfer and what it means for them.

Q 5. How does this affect my European risks?

A. The proposed transfer means that the business we currently transact within the EEA through the Company platform will be placed through the new Luxembourg company. It will not affect the continuity of your cover nor the terms of any affected policy you may hold with us. It is simply a move to allow us to continue to offer our policies across Europe after Brexit.

Q 6. What happens if the Government’s plans for Brexit change?

A. We keep a close watch on the Government’s negotiations with the EU. Should their plans change significantly we will of course see how that might affect us. Meanwhile it makes sound business sense for us to carry on with developing the solution we’ve outlined.

Q 7. Why are you aiming for a 1 January 2019 and not 29 March 2019?

A. For both of our insurance platforms we intend to be operationally ready by the last quarter of 2018 and able to trade in advance of the date that Britain is formally due to exit the EU. This will give us time to ensure all our systems and processes are working properly and provide continuity and certainty to our brokers, clients and coverholders.

Q8. What is a Part VII transfer?

A. This is a legal process that allows us to transfer insurance policies from one legal entity to another within the European Union (EU); in this case from Tokio Marine Kiln Insurance (TMKI) and its branches, to Tokio Marine Europe (TME) and its future branches. The process is being reviewed by the regulators and we also need to gain the UK High Court approval to do this, so that our clients’ policies are fully protected throughout. Our proposed transfer will take place in the second half of 2018, in time for policy renewals and new business to be written from 1 January 2019.

Q9. How do I complain?

Any person who alleges that he or she would be adversely affected by the carrying out of the insurance business transfer scheme (the "Scheme") is entitled to be heard by the Court at the hearing of the application, as are the Prudential Regulation Authority and the Financial Conduct Authority.

The application is directed to be heard before the Companies Court Judge at 7 Rolls Buildings, Royal Courts of Justice, Fetter Lane, London, EC4A 1NL on 16 November 2018 and any person (including staff employed in the performance of HCCI's business, TMKI's business or TME's business) who alleges that he or she would be adversely affected by the carrying out of the Scheme is entitled to object (by sending written representations to the solicitors named below and/or the Court or making oral representations to the solicitors named below) or may appear at the time of that hearing in person or by Counsel.  Any person who intends to object orally or in writing or so to appear is requested (but not obliged) to notify his or her objections and the reasons therefor as soon as possible, and preferably before 14 November 2018, to Hogan Lovells International LLP (the solicitors acting for HCCI and TMKI) at Atlantic House, Holborn Viaduct, London, EC1A 2FG (tel: +44 20 7296 2000), quoting reference C4/NC/TJG.

You do not need to take any action unless you consider you would be adversely affected by the transfer going ahead and wish to object to the transfer.