Tag: general insurance

FCA publishes web page on buildings insurance for leasehold properties in light of cladding concerns

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

EIOPA publishes consultation on IBOR transition

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

European Commission adopts delegated regulations that amend existing regulations to introduce greater sustainability requirements into Solvency II, MiFID and the IDD

The European Commission has adopted a series of delegated regulations that help to drive investors towards more sustainable economic activities. The measures are part of the European Green Deal. The adopted delegated regulations are part of a suite of sustainability measures adopted at the same time including the EU Taxonomy Climate Delegated Act and the … Continue Reading

EIOPA publishes opinion on the supervision of the use of climate change risk scenarios in the ORSA

The European Insurance and Occupational Pensions Authority (EIOPA) has published an opinion on the use of climate change risk scenarios in insurance undertakings’ Own Risk and Solvency Assessment (ORSA). The opinion has been written to help supervisory authorities understand EIOPA’s expectations in terms of climate risk scenarios included in the ORSA. Solvency II requires that … Continue Reading

EIOPA launches IDD single rulebook online

On 8 April 2021, the European Insurance and Occupational Pension Authority (EIOPA) published a single  rulebook online containing requirements under the Insurance Distribution Directive ((EU) 2016/97). The single rulebook covers the Insurance Distribution Directive, the Delegated Regulation (EU) 2017/2358) (on product governance and oversight), Delegated Regulation (EU) 2019/1935 (requirements relating to insurance-based investment products) and … 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

European Commission publishes summary report on its Solvency II 2020 review consultation

The European Commission has published a summary report on its consultation on the review of the Solvency II Directive (2009/138/EC). The summary report sets out the feedback received during the consultation which was run between July and October 2020. The Commission does not include the Commission’s responses to feedback. The Commission will consider the feedback … 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

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

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

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

ASIC not content with home and contents insurance

A spate of natural disasters in recent years has revealed a concerning level of underinsurance in the home and contents insurance market, according to reports released by ASIC in late 2014. ASIC has called on insurance providers ‘to implement measures that will meaningfully improve consumers’ understanding of their policy, and help ensure consumers buy a … Continue Reading
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