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NYDFS Requires COVID-19 Plans by April 9

On March 10, 2020, the New York Department of Financial Services (NYDFS) issued guidance to all of its regulated institutions engaged in virtual currency business activity, requiring them to have plans for preparedness to manage the possible operational and financial risks posed by the COVID-19 pandemic. NYDFS requires the plans to be submitted by Thursday, … Continue Reading

Chair of the House of Commons Treasury Committee writes to Director General of the ABI seeking information on insurance companies’ response to coronavirus

Mel Stride MP, Committee Chair of the House of Commons Treasury Committee, has written a letter to Huw Evans, Director General of the Association of British Insurers (ABI) seeking responses to a series of questions about how insurance companies are responding to the coronavirus.  The letter opens by stating that “many will be looking to … Continue Reading

FCA updates its statement on expectations for insurers and brokers during the pandemic

On 31 March 2020, the Financial Conduct Authority (FCA) updated its statement on what it expects insurers and brokers to do during the covid-19 pandemic. The update concerns the expectations for MOTs, product suspension and renewals. For the previous statement please read our earlier blog. Vehicle MOTs In light of the guidance from the Department … Continue Reading

EIOPA issues recommendations on flexibility for supervisory reporting and public disclosure deadlines

On 23 March 2020, the European Insurance and Occupational Pensions Authority (EIOPA) published recommendations to European National Competent Authorities that aim to offer operational relief and support business continuity to insurance and reinsurance undertakings by extending deadlines for supervisory reporting and public disclosure during the Covid-19 outbreak.  EIOPA states that “undertakings need to concentrate their … Continue Reading

FCA issues statement on its expectations for insurance companies and brokers in respect to Covid-19

On 19 March 2020, the Financial Conduct Authority (FCA) published a statement on what it expects insurers and brokers to do during the pandemic. Firms should consider the needs of their customers and show flexibility in how they are being treated during this time, particularly as policyholders will have to change their behaviour during the … Continue Reading

EIOPA issues a statement on actions to mitigate the impact of Covid-19 on the EU insurance sector

On 17 March 2020, the European Insurance and Occupational Pensions Authority (EIOPA) issued a statement on actions to mitigate the impact of Covid-19 on the insurance sector in the EU. EIOPA states that insurers will face “progressively difficult conditions in the immediate future, both in terms of navigating challenging market conditions and in maintaining operations, … Continue Reading

PRA publishes Policy Statement PS7/20 – Solvency II: Adjusting for the reduction of loss absorbency where own fund instruments are taxed on conversion

On 16 March 2020, the Prudential Regulation Authority (PRA) published  the policy statement Solvency II: Adjusting for the reduction of loss absorbency where own fund instruments are taxed on conversion (PS7/20). PS7/20 provides feedback to responses to a consultation paper with the same title (CP26/19). It also contains the PRA’s final policy in an updated … Continue Reading

PRA writes to insurance firms about outstanding EU liabilities

The Executive Director of Insurance Supervision at the Prudential Regulation Authority (PRA), has written to insurance firms to seek confirmation that they have contacted relevant EU authorities to ensure that Brexit contingency plans remain satisfactory. With the UK leaving the implementation period at the end of the year, the PRA wants firms to ensure that … Continue Reading

FCA publishes policy statement on travel insurance sign-posting for people with pre-existing medical conditions

On 5 February 2020, the Financial Conduct Authority (FCA) published a policy statement on Signposting to travel insurance for consumers with medical conditions (PS20/7). The new FCA Handbook rules will require firms to include details of a directory of firms that will cover people with pre-existing medical conditions within 30 days of the directory going … Continue Reading

FCA publish “Dear Board of Directors” letter to firms in the Personal & Commercial Lines Insurer portfolio regarding identifying and remedying harms

On January 8, 2020 the Financial Conduct Authority (FCA) published a “Dear Board of Directors” letter addressing firms in the Personal & Commercial Lines Insurer (PL&CL) portfolio in order to address identifying and remedying harms. The FCA’s view is that there are significant risks of harm that both market and individual firms need to address … Continue Reading

FCA publishes finalised guidance on the general insurance distribution chain for manufacturers and distributors

On 19 November 2019, the Financial Conduct Authority (FCA) published finalised guidance on The GI distribution chain: Guidance for insurance product manufacturers and distributors (FG19/5). The guidance follows several years’ work by the FCA on product value in general insurance, including the publication of a report following a thematic review in April 2019 (General insurance … Continue Reading

PRA publishes statement on French regulator’s response to EIOPA Brexit Recommendations

On 12 November 2019, the Prudential Regulation Authority (PRA) published a response on its website to a statement from the Autorité de contrôle et de resolution (ACPR) in response to the EIOPA Recommendations for the insurance sector in the light of the UK withdrawal from the European Union. The responses of EU member states to … Continue Reading

PRA sends ‘Dear CEO’ letter to general insurance firms setting out current areas of focus

On 5th November, acting director of insurance supervision at the Prudential Regulation Authority (PRA), Gareth Truran, sent a letter to the Chief Executives of general insurance firms. The letter sets out the PRA’s priorities for the general insurance sector in the coming months. The letter focuses on: Reserving adequacy, governance and controls – particularly in … Continue Reading

EIOPA consults on technical advice for the 2020 review of Solvency II

On 15 October 2019, the European Insurance and Occupational Pensions Authority (EIOPA) published a draft opinion on technical advice for the 2020 review of the Solvency II Directive (2009/138/EC). Responses to the draft technical advice are invited by 15 January 2020 to enable EIOPA to publish a final opinion by June 2020. The European Commission … Continue Reading

FCA publishes interim report on general insurance pricing practices as part of its market study

The Financial Conduct Authority (FCA) has published an interim report on its market study into General insurance pricing practices (MS18/1.2). A market study was launched in October 2018 by the FCA to understand whether pricing practices in home and motor insurance support effective competition and lead to good consumer outcomes. The market study followed a … Continue Reading

PRA publishes PS21/19 responses to CP13/19 ‘Occasional Consultation Paper’ with updated Supervisory Statements

The Prudential Regulation Authority (PRA) has published a Policy Statement (PS) to provide feedback to responses to Consultation Paper (CP) 13/19 ‘Occasional Consultation Paper’. In PS21/19 the PRA sets out its final rules and guidance on issues consulted on in the following chapters of CP13/19: Chapter 2: Solvency II: the quality of capital instruments. Chapter … Continue Reading

EIOPA publishes opinion on sustainability within Solvency II

On 30 September 2019, the European Insurance and Occupational Pensions Authority (EIOPA) published an Opinion on sustainability within Solvency II. The Opinion follows a request made in August 2018 by the European Commission for an opinion on sustainability with an emphasis upon climate change mitigation. The European Commission will take the Opinion into account in … Continue Reading

Part VII judgment puts life-transfers in the spotlight

The usually predictable world of portfolio transfers received a jolt on 16 August when Mr Justice Snowden declined to exercise his discretion to sanction the proposed insurance business transfer of a £12.9 billion book of in-payment annuities from The Prudential Assurance Company Limited (“Prudential”) to Rothesay Life Limited (“Rothesay”).  This is believed to be the … Continue Reading

FCA publishes CP19/23: Signposting to travel insurance for consumers with medical conditions

On 15 July 2019, the Financial Conduct Authority (FCA) published Signposting to travel insurance for consumers with medical conditions (CP19/23). CP19/23 continues the work undertaken by the FCA over the past few years on ensuring that vulnerable customers can access insurance. In June 2017 the FCA published a Call for Input on access to insurance … Continue Reading

Working Group on Sterling Risk-Free Reference Rates urges EIOPA to remove the recognised Solvency II barriers to IBOR transition

On 12 July 2019, the Working Group on Sterling Risk-Free Reference Rates published a letter from Tushar Morzaria, chair of the working group, to Gabriel Bernardino, EIOPA chair, encouraging EIOPA to go beyond monitoring the IBOR transition to now actively removing the recognised Solvency II barriers to this transition. The letter expressed concerns surrounding the … Continue Reading

Amendments to Solvency II Delegated Regulation published in the Official Journal

On 18th June 2019, Commission Delegated Regulation (EU) 2019/981 (the Amending Regulation), which amends the Solvency II Delegated Regulation ((EU) 2015/35), was published in the Official Journal of the EU. The European Commission adopted the Amending Regulation on 8 March 2019. The Amending Regulation will enter into force on 8 July 2019 (twenty days after … Continue Reading
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