Laura Hodgson (UK)

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EIOPA publishes its feedback statement on its discussion paper on blockchain and smart contracts in insurance

The European Insurance and Occupational Pension Authority (EIOPA) has published its feedback statement on its 2021 discussion paper on blockchain and smart contracts in insurance. EIOPA received a number of responses to its earlier paper and has summarised these in the  statement. Stakeholders were able to identify a number of use cases for blockchain. The … Continue Reading

PRA publishes discussion paper on potential reforms to risk margin and matching adjustment within Solvency II

The Prudential Regulation Authority (PRA) has published a discussion paper on possible reforms to the risk margin and matching adjustment in Solvency II. The discussion paper also contains a technical annex ‘Solvency II Review: Matching Adjustment and reforms to the Fundamental Spread. Responses to the discussion paper should be submitted by 21 July 2022. View: … Continue Reading

PRA publishes its business plan for 2022/23 – What’s relevant for insurers?

The Prudential Regulation Authority (PRA) has published its business plan for 2022/23. The plan follows a strategic review following the first 8 years of the prudential regulator. There are now 4 strategic goals (rather than 8). These are: retain and build on the strength of the banking and insurance sectors delivered by the financial crisis … Continue Reading

UK Government provides a response to its consultation on amendments to insolvency arrangements for insurance companies

Last year (see update ) the UK Government consulted upon a series of proposed amendments to insolvency arrangements for insurance companies. The proposed amendments included clarifications and enhancements to the court’s powers under section 377 of the Financial Services and Markets Act 2000 to order a reduction of the value of an insurer’s contracts (a … Continue Reading

Letter from Chair of the Industry and Regulators Committee to the Economic Secretary to the Treasury following the House of Lords inquiry into commercial insurance regulation

The House of Lords has published a letter from Lord Hollick, Chair of the Industry and Regulators Committee, to John Glen MP, Secretary to the Treasury. The letter concerns the inquiry into the regulation of the commercial insurance (and reinsurance) sector in the UK. During the inquiry the Committee heard evidence from the insurance industry … Continue Reading

EIOPA issues statement on the supervision of run-off businesses

The European Insurance and Occupational Pensions Authority (EIOPA) has published a Supervisory Statement on the supervision of run-off undertakings. The statement is addressed to the competent authorities with responsibility for insurance supervision in the European Union. EIOPA acknowledges the potential benefit of run-off for the insurance market, enabling more efficient use of capital and orderly … Continue Reading

PRA’s Charlotte Gerken sets out the supervisory priorities for the insurance sector in 2022

At a Norton Rose Fulbright-hosted event, Executive Director of insurance at the Prudential Regulation Authority (PRA), Charlotte Gerken, set out her priorities for the insurance sector in 2022. The speech expands upon the priorities set out in the ‘Dear CEO’ letter sent to insurance companies on 12 January 2022. The speech focused on the importance … Continue Reading

FCA publishes final guidance on its approach to the review of Part VII transfers

The Financial Conduct Authority (FCA) has published revised guidance on its approach to insurance business transfers under Part VII of the Financial Services and Markets Act 2000. The publication of the final guidance follows a consultation launched in July 2021. The revised guidance (FG22/1) replaces previous guidance (FG18/4) first published in May 2018. The revised … Continue Reading

Dear CEO letters sent to insurance companies and intermediaries on the cost of insurance for multi-occupancy buildings

The Financial Conduct Authority (FCA) has published two ‘Dear CEO’ letters that have been sent by Sheldon Mills, Executive Director of Consumers and Competition, to insurance companies and insurance intermediaries on the rising cost of insurance for apartment blocks and multi-occupancy buildings. The FCA is responding to concerns expressed by consumer groups and parliamentarians about … Continue Reading

EIOPA publishes advice to the European Commission on aspects of retail investor protection

The European Insurance and Occupational Pensions Authority (EIOPA) has published a consultation on its advice to the European Commission in respect of certain aspects relating to retail investor protection. The Commission ran a public consultation in 2021 on retail investor protection and fair treatment of customers. As part of this ongoing initiative the Commission sent … Continue Reading

EIOPA publishes consumer trends report 2021

The European Insurance and Occupational Pensions Authority (EIOPA) has published its annual consumer trends report. The latest report identifies risks for consumers arising from market trends which may require supervisory action from EIOPA or from Member States. In summary the trends report has identified the following risks: The life sector has reversed growth trends. The … Continue Reading

House of Lords Industry and Regulators Committee launches an inquiry into the regulation of the London Market

The House of Lords Industry and Regulators Committee has launched an inquiry into commercial insurance and reinsurance regulation. The Committee will explore the extent to which regulatory policy is well-designed and proportionately applied and the possibilities for optimising policy following Brexit. Evidence should be submitted by 11 February 2022. The call for evidence requests answers … Continue Reading

PRA ‘Dear CEO’ letter sets out supervisory priorities for insurance in 2022

The Prudential Regulation Authority (PRA) has published a ‘Dear CEO’ letter written by Anna Sweeney and Charlotte Gerken, co-Executive Directors for Insurance Supervision at the PRA. The letter sets out the supervisory priorities for life and general insurance firms in 2022. The letter has been sent to all insurers (including third-country branches) supervised by the … Continue Reading

PRA publishes revised policy approach on insurance business transfers

The Prudential Regulation Authority (PRA) has published a final policy statement on insurance business transfers (PS1/22). The policy statement  follows a consultation that took place last year (CP16/21). A Statement of Policy has also been published entitled ‘The PRA’s approach to insurance business transfers’. The Statement of Policy takes effect from 12 January 2022. The … Continue Reading

FSB publishes two papers designed to assist resolution planning for insurers

The Financial Stability Board (FSB) has published two papers designed to assist resolution planning for insurance companies. The papers are practices papers on Resolution Funding for Insurers and Internal Interconnectedness in Resolution Planning for Insurers. Resolution Funding for Insurers. This practices paper considers different sources of resolution funding including policyholder protection schemes and standalone resolution … Continue Reading

EIOPA publishes first review of the IDD

The European Insurance and Occupational Pensions Authority (EIOPA) has published a report on the application of the Insurance Distribution Directive ((EU) 2016/97) throughout the European market. The executive summary of the report notes that there has been insufficient time to assess the effectiveness of the Insurance Distribution Directive (IDD) as a combination of late implementation … Continue Reading

Draft Solvency 2 (Group Supervision) (Amendment) Regulations 2021 laid before Parliament

A draft of the Solvency 2 (Group Supervision) (Amendment) Regulations 2021 was laid before Parliament on 15 November 2021, alongside a draft explanatory memorandum.  The regulations are part of the measures being taken to address deficiencies in UK law after leaving the European Union. The draft regulations amend provisions (regulations 24-26 and 28) of the … Continue Reading

EIOPA publishes a report on the use of capital add-ons by national competent authorities under Solvency II during 2020

The European Insurance and Occupational Pensions Authority (EIOPA) has published its annual report on the use of capital add-ons by national competent authorities under Solvency II. Capital add-ons are used by authorities to ensure that capital reflects the risk profile of an insurance undertaking or group. Add-ons are set following supervisory review by the relevant … Continue Reading

European Commission adopts review of Solvency II

On 22 September 2021, the European Commission adopted a review of the Solvency II regime. The Solvency II regime includes the Solvency II framework directive (Directive 2009/138/EC) and delegated regulations. The review includes a legislative proposal to amend the framework directive as well as a legislative proposal for a new EU Insurance Recovery and Resolution … Continue Reading

FCA sends ‘Dear CEO’ letter to Lloyd’s and London Market firms highlighting six potential harms

FCA sends ‘Dear CEO’ letter to Lloyd’s and London Market firms highlighting six potential harms The Financial Conduct Authority (FCA) has published a ‘Dear CEO’ letter written by Charlotte Cross, Head of Department, Wholesale Insurance, to the Lloyd’s and London Market portfolio of firms. The portfolio letter sets out six areas of harm that Lloyd’s … Continue Reading

Insurance Europe publishes its response to the European Commission consultation on the Regulation on AI

Insurance Europe has published a response to the European Commission consultation on proposals for a regulation on the use of artificial intelligence. Insurance Europe welcomes the overall objective of creating a principles-based framework of requirements and the development of mandatory requirements for high-risk AI systems that pose a risk to  health and safety or the … Continue Reading
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