United Kingdom

Topic: Insurance

Subscribe to Insurance RSS feed

PRA publishes framework for assessing the financial impacts of physical climate change for the general insurance sector

On 22 May 2019, the Prudential Regulation Authority (PRA) published a report outlining a framework for practitioners to use to assess the financial impact to the liability side of the firm’s balance sheet caused by future climate change. The framework was developed by a cross-industry working group and is aimed at practitioners working with, or … Continue Reading

Speech by David Rule, Executive Director of Insurance Supervision, PRA, on ‘Model use and misuse’

David Rule, Executive Director of Insurance Supervision at the Prudential Regulation Authority (PRA), has delivered a speech on ‘Model use and misuse’ at the Association of British Insurers Prudential Seminar. The speech highlights PRA concerns about some uses of models. Models are used widely in insurance to mimic various scenarios so that insurers can estimate … Continue Reading

PRA updates Solvency II remuneration policy statement for category 1 and 2 firms

All UK Solvency II firms must comply with Article 275 of the Solvency II Delegated Regulation (EU) 2015/35 in respect of their remuneration policies. The Prudential Regulation Authority (PRA) asks UK Solvency II firms to complete a Remuneration Policy Statement to document remuneration policies and procedures. On 8 May 2019 the PRA published an updated … Continue Reading

EIOPA publishes a report following its thematic review of the use of Big Data Analytics in motor and health insurance

The European Insurance and Occupational Pensions Authority (EIOPA) has published a report on the use of Big Data Analytics in motor and health insurance. The report reveals a trend for increasingly data-driven business models throughout the insurance value chain in both health and motor insurance.… Continue Reading

General insurance firms are failing to ensure that their products and services provide value to customers says FCA

On 10 April 2010, the Financial Conduct Authority (FCA) published a press release in respect of work undertaken to ensure that customers of general insurance (GI) products are getting value for money. The FCA will continue to undertake diagnostic work on product value in GI distribution chains and will expect firms to meet its expectations … Continue Reading

France clarifies the form and content of the information to be provided by UK insurers to their French insureds and policyholders following Brexit in the event of a no-deal

On 22 March 2019, the French Ministry of Economy and Finance passed a decree (the Decree) implementing the provisions of the ordinance n° 2019-75 of 6 February 2019, introducing a contingency plan for the financial institutions sector in connection with the withdrawal of the United Kingdom (UK) from the European Union (EU) (the Ordinance). As … Continue Reading

European Commission adopts amendments to the Solvency II delegated regulation to help insurers invest in equity and private debt and to provide long-term capital financing

The European Commission has adopted amendments (in the form of a regulation) to Delegated Regulation (EU) 2015/35 (the Solvency II Delegated Regulation) which implements various technical requirements of the Solvency II Directive (2009/138/EC).  The amending regulation has been introduced as part of the proposals for the Capital Markets Union (CMU).… Continue Reading

Bank of England and Financial Conduct Authority agree Memoranda of Understanding with EIOPA and EU insurance supervisors

On 5 March 2019, the Bank of England (in the form of the Prudential Regulation Authority (PRA)), the Financial Conduct Authority (FCA) and the European Insurance and Occupational Pensions Authority (EIOPA) announced that they had agreed Memoranda of Understanding (MoUs) in respect of supervisory co-operation and information-sharing arrangements for UK and EU/EEA insurance firms.… Continue Reading

German government makes preparations to pave the way for a transitional regime for the run-off of the German business of UK insurers and reinsurers in the case of a hard Brexit

Update of 25 February 2019: The German draft act laying the ground for a limited transitional regime for UK financial services firms including insurers and reinsurers following a hard Brexit has passed the German parliament (Bundestag) on 21 February 2019 without any amendments regarding the transitional regime for UK insurers and reinsurers. The required approval … Continue Reading

EIOPA publishes framework for assessing conduct risk through the product lifecycle

On 20 February 2019, the European Insurance and Occupational Pensions Authority (EIOPA) published a framework to identify the drivers of conduct risk so that EIOPA and European National Competent Authorities (NCAs) can focus on minimising these risks to consumers.… Continue Reading

EIOPA issues recommendations to European National Competent Authorities to minimise risks to policyholders in the event of a no-deal Brexit

On 19 February 2019, the European Insurance and Occupational Pensions Authority (EIOPA) issued nine recommendations to the National Competent Authorities (NCAs) with responsibility for the supervision of insurance undertakings and insurance intermediaries in European Union (EU) Member States. The recommendations provide the NCAs with guidance on EIOPA’s expectations in relation to the treatment of UK … Continue Reading

France enacts a new legal regime for insurance contracts entered into before Brexit in the event of a no-deal.

On 7 February 2019, the French Ministry of Economy and Finance passed an Ordinance (No. 2019-75) introducing a contingency plan for the financial institutions sector in connection with the withdrawal of the United Kingdom (UK) from the European Union (EU) (the Ordinance)[1]. The Ordinance amends the provisions of the French Insurance Code (FIC) (among others) … Continue Reading

FCA consults on the reporting of General Insurance Value Measures

On 30 January 2019, the FCA published General Insurance Value Measures reporting (CP19/8). In CP19/8 the FCA proposes to require firms to report general insurance (GI) value measures data to the FCA for publication. The FCA proposes to introduce these measures to address poor product value and quality and reduce the risk of sales of … Continue Reading

UK and Switzerland sign bilateral agreement on direct non-life insurance

Representatives of the governments of the UK and of Switzerland have signed a bilateral agreement to replicate the effect of an existing agreement in place between the European Union and Switzerland in respect of direct non-life insurance (the 1989 bilateral agreement between the European Economic Community and the Swiss Confederation concerning direct insurance other than … Continue Reading

Solvency II and Insurance (Amendments) (EU Exit) Regulations 2018 published

On 8 January 2019, the Solvency 2 and Insurance (Amendments, etc.) (EU Exit) Regulations 2019 were published. These draft regulations aim to address deficiencies in “retained” EU law in relation to the prudential regulation of insurers and reinsurers after the UK has left the EU. The regulations change legislation to reflect the fact that the … Continue Reading

EIOPA calls for immediate action from firms and national authorities to ensure service continuity in cross-border insurance business

The European Insurance and Occupational Pensions Authority (EIOPA) has published a notice on its website to highlight the risks of firms having no contingency plans in place to ensure service continuity should the UK withdraw from the EU without an agreement. EIOPA acknowledges that insurers with the largest cross-border business have taken action but expresses … Continue Reading

FCA launches package of measures to address concerns about insurance pricing practices

On 31 October 2018, the Financial Conduct Authority (FCA) launched a package of measures to address concerns about pricing practices in the general insurance (GI) market. The measures follow the publication of the results of a thematic review (Pricing practices in the retail general insurance sector: Household insurance (TR18/4)). The FCA has also published a … Continue Reading

Replacement of the Luxembourg Protocol with new IDD co-operation agreement

The European protocol governing the Cooperation of the Competent Authorities of the Members States of the European Union in Particular Concerning the Application of Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on Insurance Mediation (more commonly referred to as the “Luxembourg Protocol”) has been replaced by an updated … Continue Reading

CMA receives ‘super-complaint’ in relation to customers paying a penalty for loyalty

The Competition and Markets Authority (CMA) has received a ‘super-complaint’ from Citizens Advice in respect of price discrimination against long-term customers. Citizens Advice is seeking a response from CMA including a commitment to initiating a market study to identify remedies to end overpricing for disengaged or loyal customers.… Continue Reading

Delegated Regulation amending Solvency II to align with Securitisation Regulation published in OJ

 On 10 September 2018, there was published in the Official Journal of the  EU (OJ) Commission Delegated Regulation (EU) 2018/1221 of 1 June 2018 amending Delegated Regulation (EU) 2015/35 as regards the calculation of regulatory capital requirements for securitisations and simple, transparent and standardised securitisations held by insurance and reinsurance undertakings. The Delegated Regulation will … Continue Reading

PRA policy statement on Solvency II reporting format

On 26 July 2018, the PRA released a policy statement on Solvency II and changes to reporting format, offering feedback from their consultation on the same topic (CP 11/18). The feedback was generally supportive of the proposed changes, although it noted that firms should have sufficient time to update their software capabilities to enable submission … Continue Reading

Law Commissions drop non-life contracts from latest insurable interest Bill

The Law Commissions of England and Wales and of Scotland have published a new draft of the Insurable Interest Bill. This most recent draft takes into account feedback received on an earlier draft, published in April 2016. The Bill forms part of the wide-ranging review of insurance contract law that has resulted in the Consumer … Continue Reading