Insurance Part VII Transfer Market Activity

Insurance part VII transfer, or insurance business transfer scheme, is a transfer of part or the whole of an insurance business under Part VII of the UK’s Financial Services & Markets Act 2000.

Part VII activity increased significantly in response to Brexit. Text analysis of the SFCRs reveals the scope of the activity over the past few years.

Text search for the term “Part VII transfer” of over 12,000 SFCR reports conducted using the Solvency II Wire Data SFCR Search function shows an acceleration in Part VII transfers prevalence in the SFCR reports, rising from 30 reports in 2016 to 64 in 2020 (see chart below).

Chart showing showing Part VII Transfers in the SFCR

The chart takes into account duplicate reports for groups, where the transfer details are described both in the solo and the group SFCR.

Slowdown in Part VII Transfer Activity

However, because the impact of the Part VII transfer is often recorded several years after the transaction additional analysis is required.

The orange bar in the charts shows the number of SFCRs per year where the term appears for the first time. By this count it is possible to see that the initiation of Part VII activity peaked in 2018 with 27 new instances, and has now reduced to 13 in 2020.

Note that the 2016 reports also include historic insurance business transfer scheme activity reported for the first time.

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