XL Catlin has installed a Brexit continuity clause to its London-based insurance operations.
The clause addresses the risk that contracts written by the company’s London-based operations prior to Brexit may become impermissible if the passporting rights are lost as a consequence of the UK of leaving the European Union.
It will be included in policies written by Catlin Insurance Company (CICLUK) and XL Catlin’s syndicate 2003 at Lloyd’s.
Both CICLUK and syndicate 2003 will remain in the UK, while XL Insurance Company SE (XLICSE) will move to Dublin, subject to regulatory approvals.
Paul Greensmith, UK country leader and director of London market wholesale at XL Catlin, said: “Our innovative clause offers significant advantage by minimising the risk that policies will be cancelled, by making XLICSE a contingent party to the policy. Effectively, XLICSE will act as a back-up.”
“A political solution may yet be forthcoming that ensures policies can be performed post-Brexit, but in the absence of one we believe this clause gives our clients and brokers the certainty they expect and deserve from their insurance partner.”
XL Catlin’s Brexit contingency plans will not be impacted by the recent deal agreed for the acquisition of its parent group, XL Group, by AXA.