Tesco Bank Box Insurance Brexit Questions
Why are changes being made to the Tesco Bank Box Insurance Underwriter?
In light of the UK’s decision to leave the EU (“Brexit”), the Aioi Nissay Dowa European group (AND-E) has been restructuring to ensure that its customers receive uninterrupted insurance cover and services in the UK and across Europe post Brexit.
The AND-E group has European policyholders as well as UK policyholders. In case there is a no-deal Brexit, the group has decided to establish a European insurance company for European policyholders and a UK insurance company for UK policyholders.
What changes are being proposed?
AND-E proposes to transfer the registered office of its existing insurance company from the UK to Luxembourg. This will enable the company to continue to operate from its existing branches across Europe and from a new UK branch.
AND-E is also in the process of establishing a new insurance company in the UK with the intention that it will be the insurer of our new and renewing UK customers.
After the Brexit restructure the AND-E group will have two licenced non-life insurers:
• Aioi Nissay Dowa Insurance UK Limited in the UK (ANDI UK), and
• Aioi Nissay Dowa Insurance Company of Europe SE in Luxembourg (ANDIE).
How does the underwriter transfer from the UK to Luxembourg?
ANDIE is a European public limited-liability Company regulated under EU law and registered in the UK, also known as a Societas Europaea (SE). ANDIE converted to an SE (company number SE000119) on 6 August 2018. Under Article 8 of the European Council Regulation (EC) No 2157/2001 of 8 October 2001 on the Statute for a European company (SE), an SE is allowed to transfer its domicile from one EEA Member State to another and remain the same legal entity. In this way existing legal contracts that the SE is party to remain valid, including policyholders’ insurance contracts.
Why a new UK company as well as a UK branch of the existing company?
Under UK insurance regulation there is a maximum amount of business that can be written by a UK branch of an EEA company. Therefore the AND-E group is setting up a new insurance company in the UK.
The UK branch of the existing company will continue to provide cover and services to its existing UK policyholders until the expiry of their policy or administration of any claims, whichever is the later.
When is the transfer happening?
Subject to approval by the Local Regulator, the transfer proposal will become effective from the date on which the Company is registered by the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés de Luxembourg) (the “Effective Date”), it is anticipated that the Effective Date will be on or about 10 March 2019 at 00:00:01am (Luxembourg time) being 11.00.01pm 9 March UK time.
How does the transfer impact policies and how will claims be handled?
The proposed transfer will have no impact on the cover provided by the current policy. Any claims which a policyholder may have made, or may make, under their existing policy or policies will be handled in the same manner before and after the transfer.
The duration of the policy and any associated no-claims discount will be unchanged.
Will there be any changes to the premiums charged to policyholders?
No. The proposed transfer will not in itself result in any change to the premiums payable on existing policies.
How is policyholder data being handled/protected?
Policy data remains within the AND-E group and so is subject to all the existing data privacy and data protection practices.
Will customers need new policy documents?
No. The terms and conditions of the policies will stay the same. Customers will not need any new insurance documents for existing policies as a result of the proposed transfer.
Will policyholders have access to the Financial Services Compensation Scheme (FSCS) and Financial Ombudsman Scheme (FOS)?
Yes, policyholders will continue to have access after the Proposed Transfer to both the Financial Services Compensation Scheme (FSCS) and Financial Ombudsman Scheme (FOS).
Will the same people continue to deal with my policy?
Yes, all contact details and customer service phone numbers will remain the same.
Do I need to do anything? If I have any questions who can I ask?
You are not required to take any action unless you have questions or think you might be adversely affected by the proposed transfer.
If you have any questions or concerns you can call us on 0330 022 2202. Lines are open Monday to Friday 8am-8pm and Saturday 9am-4pm.