The UK P&I Club position on the U.K. decision to leave the European Union
Following the decision in 2016 of the United Kingdom to leave the European Union (“Brexit”), the UK P&I Club announced its intention to establish a new European subsidiary in the Netherlands, UK P&I Club N.V., (“UKNV”), to ensure that cover could be provided to Club Members with risks located in the European Economic Area (EEA).
The UK P&I Club N.V. is an insurance company having received its insurance license in the Netherlands in March 2019. It is regulated by De Nederlandsche Bank (DNB) and Authoriteit Financiele Markten (AFM). The company is a wholly-owned subsidiary of the United Kingdom Mutual Steam Ship Assurance Association Limited. The principal activity of the company is the insurance and reinsurance of protection and indemnity risks on behalf of the Members, active in the marine and transport industry.
UK P&I Club N.V. was established in anticipation of the United Kingdom leaving the European Union (Brexit). The company applies a fronting model by which members based in the EEA from the so-called Fronted Clubs receive insurance cover from UK P&I Club N.V. The company will then reinsure this exposure to the Fronted Clubs.