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
As part of the UK Government’s review of Solvency II, a ‘Call for Evidence’ was published in October 2020. The Call for Evidence closed in February 2021. The insurance industry has been waiting for the results of the feedback to the Call for Evidence which was finally published on 1 July 2021. The Call for … Continue Reading
The UK Government has launched a consultation on a series of proposed amendments to existing insolvency arrangements for insurance companies. The amendments include 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 ‘write-down’). The … Continue Reading
The Financial Conduct Authority (FCA) has published the long-awaited policy statement General insurance pricing practices market study – Feedback to CP20/19 and final rules (PS21/5). The final rules address what has been described as the ‘loyalty penalty’ paid by existing general insurance product customers. The publication of the policy statement and rules follows a final … Continue Reading
The Financial Conduct Authority (FCA) has published a web page setting out its expectations for buildings insurance providers in terms of offering fair value insurance for leasehold properties. Recently, leaseholders of apartments have been paying more for buildings insurance, especially where the exterior has been covered with cladding. The FCA says that insurers and intermediaries … Continue Reading
The European Insurance and Occupational Pensions Authority (EIOPA) has launched a consultation on the Interbank Offered Rates (IBOR) transitions. Across markets, IBOR is being replaced by risk-free rates. The consultation considers adjustments to EIOPA’s risk-free rate (RFR) methodology and production, in light of If the EU Benchmark Regulation (which came into force in 2018) which … Continue Reading
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
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
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
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
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
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
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
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
The UK Government has said that it will use equivalence as one of its tools to support the facilitate cross-border trade between the UK and the European Union (and the wider European Economic Area). In an announcement on 9 November 2020, the Chancellor of the Exchequer, Rishi Sunak MP, announced that the UK proposed to … Continue Reading
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
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
In June 2020, the UK Government announced that it would review some of the features of Solvency II to ensure that the regime better reflects the UK insurance sector. The present regime, as implemented into UK law, has been designed to cover the entire EU insurance market but has not been adjusted to take into … Continue Reading
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
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
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
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
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
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
