Zurich in the UK after Brexit
Following the UK’s exit from the European Union on 31 January 2020 (Brexit), Zurich is proposing to transfer parts of Zurich’s UK general insurance business from Zurich Insurance plc (ZIP) to Zurich Insurance Company Ltd (ZIC). This is an internal reorganisation between two companies within the Zurich Group and policy terms, administration and service levels will not be affected.
The proposed transfer will be carried out using an insurance business transfer scheme under Part VII of the Financial Services and Markets Act 2000, subject to approval by the High Court in the UK. A separate scheme is required to transfer any insurance business carried on in, or from within, Jersey. If the proposals are approved, we expect the transfer to take place on 1 January 2023.
Why is this transfer necessary?
Since Brexit, Zurich’s general insurance business in the UK has been written through the UK branch of ZIP (an insurer based in Ireland) under the Temporary Permissions Regime (TPR). The TPR is overseen by the Prudential Regulation Authority and is currently due to end on 31 December 2023. To remain compliant with our legal and regulatory obligations, we intend to transfer the relevant business to the UK branch of ZIC (a Swiss-based insurance company).
What you need to do
As part of the process, we will be writing to all transferring policyholders and other interested parties to inform them of the proposed transfer and give them the opportunity to raise any concerns. If you are affected (for example because your insurance contract forms part of the business carried on by ZIP through its UK branch), you will receive a letter or email from us, including a Q&A guide and other relevant information. This will include the legal notice – the legal notification regarding the proposed UK transfer scheme, as published in the press. We recommend you read the pack in full as it explains the process in detail.
To find out more about the transfer on our UK website, or to see a copy of the legal notice, click on the links below.