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Publications
Part VII Transfers - a Practical Guide
contributors: Robert S. Gebhard, Mark Chudleigh
Insurance business transfers are a means of effecting a statutory transfer of policies of insurance or reinsurance from one insurer or reinsurer to another. Generally, they involve a court procedure through which the transfer is “sanctioned”. They take effect in the absence of policyholder consent, although policyholders must be given advance notice may submit objections to the court. The court will only sanction the transfer if an independent expert opines that policyholders will not be adversely affected and if the UK regulator, the Financial Services Authority (FSA), makes no objection. One signal advantage of insurance business transfers under UK law is that they transfer outwards reinsurance programmes along with the inwards business. The UK legislation is part of a European statutory framework providing for the mutual recognition of business transfers across member states of the European Economic Area (EEA).
The UK transfer regime has been extensively used since it became available in 2002. It affords a substantial advantage to insurers and reinsurers with establishments in the EEA by allowing them to redomesticate portfolios into more advantageous tax or regulatory regimes, or to take advantage of internal business savings. It allows purchasers of runoff businesses to streamline their businesses, reserves, and capital arrangements, and can alleviate regulatory capital charges. It is available to insurers and reinsurers around the world, provided they have an authorized establishment in the UK.
This book is the first of its kind in bringing together a detailed but highly readable analysis of all aspects of the UK regime, as well as certain international factors. It explains to the layperson what kind of business may be transferred, and when, as well as the regulatory and court procedures. It provides practical tips on planning and implementing a transfer, and a thorough consideration of which jurisdictions (both within the EEA and outside) will “recognize” the transfer, and which may not, and why. Finally, it contains a chapter dedicated to the role of the independent expert and the factors involved in preparing a report.
It is written by an actuary, an accountant and a lawyer, all with in-depth experience of the UK insurance business transfer regime. It also contains contributions from US and Bermudian lawyers on the subject of recognition in those countries. It is primarily targeted at participants in the runoff sector as well as live companies that may be considering insurance business transfers either for their live business or as part of their runoff strategy for discontinued lines.
For more information or to purchase a copy of Part VII Transfers, please visit the Publisher's Website.
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