The Prudential Regulation Authority (PRA) has launched the 2022 Insurance Stress Test (IST). The IST is run every two years and seeks information from the largest life and general insurance companies in the UK. In a ‘Dear CEO’ letter sent to the participating firms, the PRA sets out its objectives for the IST and provides … Continue Reading
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
The UK Government has launched its long-awaited consultation on proposed reforms to the Solvency II regime in the UK. Since leaving the European Union, the UK Government is now able to adapt its version of the Solvency II regime to more closely suit the UK insurance market. The UK Government believes that if certain changes … Continue Reading
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
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
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
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
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
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
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
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
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
The Financial Conduct Authority (FCA) has updated its web page on the new general insurance value measures that came into effect in July 2021. Under the new measures, general insurance firms are expected to publish a report covering the period 1 July 2021 – 31 December 2021 by 28 February 2022. The report must contain … Continue Reading
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
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
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
The Prudential Regulation Authority (PRA) has launched a consultation on its proposed approach to interpreting and applying the definition of an insurance holding company. The proposal is for the revised definition to be used in the Group Supervision Part of the PRA Rulebook. The aim is to provide a definition that distinguishes an insurance holding … Continue Reading
The FCA has published a ‘Dear Board of Directors’ letter sent to personal and commercial line insurers (PL&CL) on 25 August. This follows a letter of a similar nature sent in January 2020. In this present letter, the FCA covers the following topics: An updated view of the key risks of harm PL&CL insurers pose. … Continue Reading
The Financial Conduct Authority (FCA) has published the latest portfolio letter to life insurance firms. The last portfolio letter, being a letter aimed at a particular part of an industry, was sent to life insurers in 2018. Portfolio letters set out the identified key risks of harm to customers in a particular sector and set … Continue Reading
The Financial Conduct Authority (FCA) has published a policy statement, General insurance pricing practices – amendments (PS21/11). The policy statement provides amendments and clarifications to the earlier policy statement on general insurance pricing practices, published in May (PS21/5). The FCA explains that it is publishing amendments following discussions with stakeholders on the challenges involved in … Continue Reading
Prudential Regulation Authority Executive Director, Insurance, Charlotte Gerken has sent a ‘Dear CFO’ letter on the launch of a qualitative data gathering exercise. The exercise is part of the UK review of Solvency II rules following leaving the European Union. The Qualitative Questionnaire complements the quantitative impact study (QIS) that was launched in July. The … Continue Reading
The Prudential Regulation Authority (PRA) has published a ‘Dear CEO’ letter from Charlotte Gerken, Executive Director, Insurance, at the PRA concerning the launch of the data gathering exercise for the UK review of Solvency II. The data gathering exercise is known as a quantitative impact study (QIS). Firms have been invited by the PRA to … Continue Reading
The Financial Conduct Authority (FCA) is consulting on proposed updates to its Finalised Guidance, FG18/4: The FCA’s approach to the review of Part VII insurance business transfers, initially published in May 2018. The FCA is proposing to amend the guidance following its experience over the past few years and feedback from stakeholders, with the aim … Continue Reading
The Financial Conduct Authority (FCA) has sent a ‘Dear CEO’ letter to general insurance intermediary firms reminding them of their obligations to maintain appropriate arrangements for client money. The FCA had reminded general insurance intermediaries of their obligations in a letter in September 2020. As part of its work on financial resilience the FCA has … Continue Reading
