This site uses cookies. By continuing to browse the site, you are agreeing to our cookie policy.

Important Notice

Proposed transfer of general insurance business of Royal London (CIS) Limited (formerly known as Co-operative Insurance Society Limited)

The proposed transfer of all the General Insurance Business of RL(CIS) to CISGIL was heard by the High Court of England and Wales on 17 March and the Jersey High Court on 19 March for policies taken out in Jersey.  Both the UK and Jersey Courts have approved the transfer which came into effect on 31 March 2014, at which time any General Insurance business of RL(CIS), taken out before January 2006, were transferred to CISGIL.

Any General Insurance policies taken out with CISGIL after January 2006 are not affected by this transfer.  Life, Funeral, Pension, Savings and Investment policies are also not affected by the transfer.

This notice is only relevant to you if you held a general insurance policy e.g. a motor, home or commercial insurance policy, with CIS prior to 15th January 2006.

 

5 March 2014 Update:  The Independent Expert has produced a supplementary report which can be viewed in both the Documents relating to the UK Transfer and Documents relating to the Jersey Transfer sections below.

Questions and Answers

What is happening?

Co-operative Insurance Society Limited ("CIS") operated for many years as part of The Co-operative Group and was sold to The Royal London Mutual Insurance Society Limited ("Royal London") last year. RLCIS currently contains general insurance business written before 15th January 2006 when CIS was part of The Co-operative Group. It is this business that RLCIS is proposing to transfer to CISGIL, which is still part of The Co-operative Group.

In the past, CIS used to provide both long-term insurance policies and general insurance policies. When CIS stopped providing general insurance policies, that role in The Co-operative Group was taken on by CISGIL. At that time, CISGIL agreed to take on the liabilities associated with CIS's general insurance business. The proposed transfer will therefore simplify the operations of the general insurance businesses going forward.

Why is this happening?

CISGIL is already responsible for the administration of the general insurance business of RLCIS and pays any claims which arise, under a contractual agreement with RLCIS, Royal London and The Co-operative Banking Group have agreed that it would help simplify this arrangement to bring all the general insurance business together within CISGIL.

What is transferring under this proposal?

The general insurance business of RLCIS, which includes open or future claims under policies written before 15th January 2006 will be transferring under this proposal.

How will the transfer be made?

If your policy was sold in the UK, Guernsey, or the Isle of Man, your policy will be transferred to CISGIL using a process known as an insurance business transfer scheme under Part VII of the Financial Services and Markets Act 2000 (known as a "Part VII transfer").

A Part VII transfer is a legal process under which an insurance company can transfer its insurance policies to another insurance company, and is a process strictly governed by law and must be approved by the High Court.

If your policy was sold in Jersey, your policy will be transferred to CISGIL by a seperate insurance business transfer scheme in Jersey (the "Jersey Scheme"). As with the Part VII transfer, the Jersey scheme has to be approved by the Royal Court of Jersey, and is a heavily regulated process. The terms of the Jersey Scheme are substantially the same as those of the Part VII transfer.

When will the transfer take place?

Provided that the High Court sanctions the Part VII application, the transfer is expected to take place on 31st March 2014. The Jersey policies are also expected to transfer on 31st March 2014, provided that the Royal Court of Jersey approves the Jersey scheme.

How will you be protected?

Throughout this process we have been in consultation with the Prudential Regulation Authority and the Financial Conduct Authority, who have oversight of this proposal. An Independent Expert, Derek Newton of Milliman LLP, has also been appointed to assess the impact of the transfer on all policyholders and claimants of RLCIS and CISGIL, and to present his findings to the High Court and the Royal Court of Jersey. You can download a copy of the Independent Expert's report in the Documents relating to the UK Transfer and Documents relating to the Jersey Transfer sections below. You are entitled to make your own views known and the way in which this can be done is described in the What rights do you have? section below.

How will you be affected?

As explained above, CISGIL is already responsible for dealing with claims and other administrative matters affecting your historic policy with RLCIS. If the transfer is approved there will be no change to the way claims are managed but they will be against CISGIL rather than RLCIS. The contact details that you will need to use in relation to your historic policy will also remain the same and you will not see any changes to the service you receive. Please note, any current policies you may have with CISGIL will not form part of this transfer.

Is there anything for you to do?

The transfers will take place automatically on 31st March 2014 following the High Court's approval of the Part VII transfer and the Royal Court of Jersey's approval of the Jersey scheme.

We recommend that you read the summary of the Independent Expert's report and the summary of the terms of the Scheme which are available in the Documents relating to the UK Transfer and Documents relating to the Jersey Transfer sections below, to determine if your rights will be adversely affected.

What rights do you have?

If you think that your rights will be adversely affected by our proposals, you have the right to participate in the UK High Court hearing on 17/03/2014 (or the hearing in the Royal Court of Jersey if your policy was sold in Jersey) by making a statement as to why you believe you may be adversely affected by our proposal. You may do so either by making a written representation or by appearing in person (or by a legal representative) in court.

If you hold a UK, Isle of Man or Guernsey policy and intend to make a written representation to the High Court or to appear in person on 17/03/2014, you are requested to inform Clifford Chance LLP of your objections as soon as you can, and by no later than 10/03/2014, at Ref. HJE/70-40462798, Clifford Chance LLP, 10 Upper Bank Street, London, E14 5JJ.

If you hold a Jersey policy and intend to make a written representation to the Royal Court of Jersey or to appear in person at your hearing, you are requested to inform Appleby, of your objections as soon as you can at Ref. 209558.0003, Michael Cushing, Appleby, 13-14 Esplanade, St Hellier, Jersey, JE1 1BD.

Where can I find out more information?

Documents relating to the UK Transfer

Summary of the Independent Expert's report and terms of the scheme

The Independent Expert's full report

The Independent Expert's supplementary report

The Scheme document

Claim Form

Formal Pre-Transfer Notice

Policyholder Guide

UPDATE TO POLICYHOLDER GUIDE - The accompanying Policyholder Guide includes, at paragraph 5.6 on page 8, reference to CBG’s intention to sell CISGIL. Since preparation of the Guide, it has been announced that CBG no longer intends to sell CISGIL.

Documents relating to the Jersey Transfer

Summary of the Independent Expert's report and terms of the scheme

The Independent Expert's full report

The Independent Expert's supplementary report

The Scheme document

Formal Pre-Transfer Notice

Policyholder Guide

Back to top

You can request free copies of these documents by calling 0845 603 4032 (from the UK) or +44 161 376 6266 (from outside of the UK). You can also request copies of these documents by writing to The Transfer Team, Royal London (CIS) Limited, 2nd Floor, Miller Street, Manchester, M60 0AL.