What is an insurance business transfer scheme?

Since it came into effect back in 2001, the UK's insurance business transfer mechanism, commonly known as a Part VII transfer, has grown in popularity. This is due not only to the fact that a Part VII brings complete finality for the transfer or when it comes further exposure to liabilities, similar to a sale - but also that it is relatively straightforward and quick to implement.

This excerpt taken from 'Part VII transfers: A Practical Guide' defines what an insurance business transfer scheme is and studies uses of insurance business transfers.