The European Commission, the top regulatory body of the European Union, is reportedly set to decide on Tuesday whether to file formal charges against the U.K. for failing to apply EU regulatory standards to the Lloyd’s insurance market.
Under the applicable rules, national regulatory bodies are charged with assuring that that insurance firms have sufficient reserves to cover potential liabilities. The EC is currently reviewing a report from investigators that raised the possibility that U.K. regulators hadn’t followed the applicable standards in supervising the Lloyd’s market, particularly in connection with asbestos and environmental liabilities.
A decision to file formal charges could open the doors to several groups of Lloyd’s “Names” to make successful claims against the U.K. government. A number of Names have been seeking to avoid paying assessments to Lloyd’s following the huge losses caused by asbestos. They’ve been unsuccessful in the U.K., but claims filed in EU courts, accusing the government of failing to properly regulate Lloyd’s, could open the door to a recovery of the amounts they’ve been assessed.
According to a report from Reuters News Agency the EC has put the report from EU Internal Market Commissioner Frits Bolkestein, which has been examining the Lloyd’s market its runoff vehicle since September, on its agenda for this Tuesday’s weekly meeting.
Topics Legislation Excess Surplus Europe Lloyd's Uk
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