United Kingdom

Topic: Insurance

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Sam Woods delivers a speech on the future of UK insurance regulation

Sam Woods, Deputy Governor for Prudential Regulation and CEO of the Prudential Regulation Authority (PRA), has delivered a speech to the Association of British Insurers in which he stated that insurance regulation is about to change in the UK. Woods discussed the reform to the architecture of financial services regulation in the UK as well … Continue Reading

FCA publishes a business interruption policy checker and FAQs on business interruption coverage on its website

The Financial Conduct Authority (FCA) has published a ‘policy checker’ and a set of frequently asked questions in order to help policyholders understand whether they have valid claims under their business interruption policies in the light of the Covid-19 pandemic. The checker follows the Supreme Court decision in FCA v Arch Insurance (UK) Ltd. The … Continue Reading

FCA sends ‘Dear CEO’ letter on business interruption insurance following the Supreme Court Test Case decision

On Friday 22 January 2020, the FCA sent a ‘Dear CEO’ letter to insurance companies and managing general agents in order to clarify its expectations of firms in respect of business interruption claims following the decision of the Supreme Court on 15 January (see our case summary here). Executive Director of Consumers and Competition, Sheldon … Continue Reading

Brexit – Reminder from the French regulator to UK financial institutions on their obligations towards customers residing in France

On 4 January 2021, the French regulator (the Autorité de Contrôle Prudentiel et de Résolution – ACPR) issued a press release reminding UK authorised financial institutions (including those located in Gibraltar) of their obligations towards customers residing in France. As of 1 January 2021, European law is no longer applicable in the United Kingdom (UK). … Continue Reading

Brexit – France clarifies the form and content of the information to be provided by UK insurers to their French insureds and policyholders following Brexit – Update

As mentioned in our previous post published in April 2019, the French Ministry of Economy and Finance passed a decree dated 22 March 2019 (the March 2019 Decree) implementing the provisions of the ordinance n°2019-75 of 6 February 2019, introducing a contingency plan for the financial services sector in connection with the withdrawal of the … Continue Reading

PRA publishes ‘Dear CEO’ letter on ‘Insurance Supervision: 2021 Priorities’

The Prudential Regulation Authority (PRA) has published a letter send by Anna Sweeney and Charlotte Gerken, joint executive directors of insurance, on its supervisory priorities for the insurance sector in 2021. The priorities identified are financial resilience, LIBOR transition, operational resilience, financial risks arising from climate change and changes in PRA responsibilities after the end … Continue Reading

FCA publishes draft guidance for policyholders on proving the presence of covid-19 within a particular area

Following the decision of the High Court in Financial Conduct Authority v Arch and others [2020] EWHC 2448 (Comm), the Financial Conduct Authority (FCA) has decided to publish guidance in respect of the evidence and methodologies which policyholders may use to prove the presence of Covid-19. Although some aspects of the High Court decision have … Continue Reading

FCA sends ‘Dear CEO’ letter setting out its strategy for Price Comparison Websites

The Financial Conduct Authority (FCA) has sent a ‘Dear CEO’ letter to Price Comparison Websites. The letter identifies the key risks of harm which it believes Price Comparison Websites (PCWs) pose to their customers and the markets in which they operate. PCWs are expected to review the harms identified and take steps to reduce the … Continue Reading

FCA sends ‘Dear CEO’ letter on its supervisory strategy for Lloyd’s and London Market Intermediary firms

The Financial Conduct Authority (FCA) has sent a ‘Dear CEO’ letter to intermediaries (including Managing General Agents) that operate in the Lloyd’s and London Market. The FCA has recently started to group firms into separate portfolios. Lloyd’s and London Market intermediaries (LLMI) fall into one such group of FCA supervised firms. The FCA writes that … Continue Reading

UK regulators send ‘Dear CEO’ letter to insurers concerning preparations for the end of the transition period

The two UK financial regulators, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have sent a letter to the chief executives and branch managers of insurance firms in the UK. The letter reminds firms about the end of the transition period in December and the need to be ready for a range … Continue Reading

Additional measures to assist insurance customers in financial difficulty introduced by the FCA

The Financial Conduct Authority (FCA) has introduced proposals on how firms should continue to support customers who hold insurance and premium finance products and may be in financial difficulty due to coronavirus (Covid-19). The proposals consider the ways in which firms might provide support to consumers who have already had a payment deferral and to … Continue Reading

EIOPA outlines its approach to the supervision of insurance product governance and oversight

The European Insurance and Occupational Pensions Authority (EIOPA) has published ‘EIOPA’s approach to the supervision of product oversight and governance’. The Insurance Distribution Directive ((EU) 2016/97) (IDD) contains requirements on product oversight and governance for insurance distributors. These requirements aim to ensure that customers’ interests are taken into account throughout the product lifecycle. The latest … Continue Reading

FCA sends ‘Dear CEO’ letter to general insurance intermediaries on adequate client money arrangements

The Financial Conduct Authority (FCA) has sent a ‘Dear CEO’ letter from Christopher Woolard, interim chief executive officer, to general insurance intermediaries. The letter states that during the COVID-19 pandemic it is imperative that intermediary firms maintain adequate arrangements to safeguard client money. The FCA expects senior management to have appropriate oversight over client money … Continue Reading

FCA reminds professional indemnity insurance underwriters to meet regulatory requirements when including pandemic exclusions

In its latest regulatory round-up, the Financial Conduct Authority (FCA) has reminded insurers offering professional indemnity insurance of its Handbook requirements. Insurance firms applying pandemic exclusions are reminded of the minimum requirements in MIPRU 3.2 and should consider whether exclusions are consistent with product governance obligations to ensure that the policy is compatible with the … Continue Reading

‘Dear CEO’ letter sent by FCA to BI insurance firms reminding them to pay claims quickly or be clear about reasons for waiting for appeal to recent high court judgment

A ‘Dear CEO’ letter written by Christopher Woolard, interim chief executive of the Financial Conduct Authority (FCA), has been sent to firms writing business interruption insurance cover following the judgment handed down in The Financial Conduct Authority v Arch and Others (Test Cast). Mr Woolard thanks the firms who participated in the Test Case for … Continue Reading

FCA proposes measures to address problems identified in general insurance pricing practices

The Financial Conduct Authority (FCA) has published the final report in its study of general insurance pricing practices (MS18/1). The final report follows a two year study into pricing in the general insurance sector in the UK. An interim report was published in October 2019 setting out interim findings. Alongside the final report the FCA … Continue Reading

FCA sends ‘Dear CEO’ letter to insurance intermediaries on its supervision strategy for personal and commercial lines

The Financial Conduct Authority (FCA) has sent a ‘Dear CEO’ letter from Roma Pearson, Head of Department, Retail General Insurance, to intermediary firms setting out the key risks posed by insurance intermediaries to customers. The letter asks firms to consider the extent to which the risks identified exist in their business and assess strategies to … Continue Reading

PRA Dear CEO letter: Temporary Permissions Regime – Operational Readiness

On 1 September 2020, the Prudential Regulation Authority (PRA) published a Dear CEO letter from Sam Woods, Deputy Governor and CEO of the PRA to remind firms to be operationally ready for the Temporary Permissions Regime (TPR). The TPR is due take effect at 11pm on Thursday 31 December 2020, which is the point at … Continue Reading

New Bank of England webpage on the Temporary Permissions Regime

On 1 September 2020, the Bank of England (BoE) published a new webpage, which summarises its approach to the Temporary Permissions Regime (TPR). On this new webpage the BoE has confirmed the following: Firms that have submitted a valid Notification or Part 4A application (and not withdrawn) will automatically enter the TPR. Where a firm … Continue Reading

FCA publishes statement on the provision of data under the Civil Liability Act 2018

The Civil Liability Act 2018 (and subsequent Civil Liability (Information Requirements) and Risk Transformation (Amendment) Regulations 2020) requires that certain insurers (broadly, those insurers writing more than 100,000 private motor policies a year) must submit data to the Financial Conduct Authority (FCA) about the effect that the Civil Liability Act 2018 will have on motor … Continue Reading

FCA publishes statement on non-damage business interruption settlements and deductions in relation to Government support

In response to concerns expressed about how insurers are calculation non-damage business interruption (BI) claims payments where liability has been agreed, the Financial Conduct Authority (FCA) has published a statement on deductions being made for Government support received.  Over the past few months many BI claimants have received some form of Government support in response … Continue Reading

European Commission publishes paper setting out best-practice examples in relation to insurers’ COVID-19 measures

The European Commission has published a paper setting out examples of best-practices relating to relief measures offered to the customers of financial services businesses in the COVID-19 crisis. The best-practice paper includes examples relevant to insurance. The paper is the outcome of two roundtables including a number of participants from across the financial services industries, … Continue Reading