United Kingdom

Topic: Insurance

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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

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

The date on which the United Kingdom (UK) will leave the European Union (EU) is coming closer. Unless the Withdrawal Agreement is ratified by both the UK and the EU, the UK will become a “third country” under EU legislation on 30 March 2019 (Brexit date). Consequently, in the absence of a ratified Withdrawal Agreement … 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

Counter-Terrorism and Border Security Bill amending Pool Re coverage introduced into UK Parliament

The Counter-Terrorism and Border Security Bill (the Bill) seeks to ensure that law enforcement and intelligence agencies have the powers they need to help keep the UK safe from the threats of terrorism and hostile state activities. It will also amend the scope of reinsurance available to cover business interruption losses.… Continue Reading

PRA publish Dear CEO letter regarding market conditions facing specialist general insurers

On 31 May 2018, the Prudential Regulation Authority (PRA) published a ‘Dear CEO’ letter addressed to firms from Anna Sweeney, PRA director – Insurance Supervision. The letter concerns conditions in the general insurance market, particularly for specialist risks underwritten within the London Market, and feedback from recent PRA review work. Some key findings of the … Continue Reading

European Commission adopts Delegated Regulation aligning Solvency II Delegated Regulation with Securitisation Regulation

On 1 June 2018, the European Commission published a Delegated Regulation amending the Solvency II Delegated Regulation ((EU) 2015/35). As part of its Capital Markets Union (CMU) initiative, the Commission adopted on 30 September 2015 a Proposal for a Regulation on STS Securitisation and a Proposal for an amendment to the Capital Requirements Regulation for … Continue Reading

EU/US “covered agreement” enters into force

The European Union and the United States have notified each other that all procedures have been completed to enable the bilateral agreement on prudential measures relating to insurance and reinsurance (the Agreement) to enter into force. Accordingly notice has now been published in the Official Journal of the European Union stating that the Agreement entered … Continue Reading

European Council adopts directive to delay IDD until October 1

The European Parliament voted on March 1, 2018 to adopt a directive to delay the implementation of the Insurance Distribution Directive until October 1, 2018. Today (March 9, 2018), the European Council has adopted the directive agreed by the Parliament with the effect that European Member States must implement the IDD into national law by … Continue Reading

European Parliament non-objection to the delay of IDD’s supplementing Delegated Regulations

The European Parliament has published the text of a resolution confirming their decision to raise no objections to the Commission delegated regulation of 20 December 2017 amending Delegated Regulation (EU) 2017/2358 and Delegated Regulation (EU) 2017/2359 as regards their date of application. These Delegated Regulations relate to the product oversight and governance requirements for insurance … Continue Reading

PRA publishes proposal to delay IDD commencement date until October

The Prudential Regulation Authority (PRA) has published Insurance Distribution Directive: change to commencement date (CP4/18) in which it proposes to amend the effective dates of PRA rules related to the Insurance Distribution Directive (IDD) following a proposal by the European Commission to postpone the application date of the IDD.… Continue Reading