Tag: general insurance

EIOPA publishes its feedback statement on its discussion paper on blockchain and smart contracts in insurance

The European Insurance and Occupational Pension Authority (EIOPA) has published its feedback statement on its 2021 discussion paper on blockchain and smart contracts in insurance. EIOPA received a number of responses to its earlier paper and has summarised these in the  statement. Stakeholders were able to identify a number of use cases for blockchain. The … Continue Reading

PRA publishes discussion paper on potential reforms to risk margin and matching adjustment within Solvency II

The Prudential Regulation Authority (PRA) has published a discussion paper on possible reforms to the risk margin and matching adjustment in Solvency II. The discussion paper also contains a technical annex ‘Solvency II Review: Matching Adjustment and reforms to the Fundamental Spread. Responses to the discussion paper should be submitted by 21 July 2022. View: … Continue Reading

UK Government provides a response to its consultation on amendments to insolvency arrangements for insurance companies

Last year (see update ) the UK Government consulted upon a series of proposed amendments to insolvency arrangements for insurance companies. The proposed amendments included 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 … Continue Reading

Letter from Chair of the Industry and Regulators Committee to the Economic Secretary to the Treasury following the House of Lords inquiry into commercial insurance regulation

The House of Lords has published a letter from Lord Hollick, Chair of the Industry and Regulators Committee, to John Glen MP, Secretary to the Treasury. The letter concerns the inquiry into the regulation of the commercial insurance (and reinsurance) sector in the UK. During the inquiry the Committee heard evidence from the insurance industry … Continue Reading

PRA’s Charlotte Gerken sets out the supervisory priorities for the insurance sector in 2022

At a Norton Rose Fulbright-hosted event, Executive Director of insurance at the Prudential Regulation Authority (PRA), Charlotte Gerken, set out her priorities for the insurance sector in 2022. The speech expands upon the priorities set out in the ‘Dear CEO’ letter sent to insurance companies on 12 January 2022. The speech focused on the importance … Continue Reading

Dear CEO letters sent to insurance companies and intermediaries on the cost of insurance for multi-occupancy buildings

The Financial Conduct Authority (FCA) has published two ‘Dear CEO’ letters that have been sent by Sheldon Mills, Executive Director of Consumers and Competition, to insurance companies and insurance intermediaries on the rising cost of insurance for apartment blocks and multi-occupancy buildings. The FCA is responding to concerns expressed by consumer groups and parliamentarians about … Continue Reading

EIOPA publishes consumer trends report 2021

The European Insurance and Occupational Pensions Authority (EIOPA) has published its annual consumer trends report. The latest report identifies risks for consumers arising from market trends which may require supervisory action from EIOPA or from Member States. In summary the trends report has identified the following risks: The life sector has reversed growth trends. The … Continue Reading

House of Lords Industry and Regulators Committee launches an inquiry into the regulation of the London Market

The House of Lords Industry and Regulators Committee has launched an inquiry into commercial insurance and reinsurance regulation. The Committee will explore the extent to which regulatory policy is well-designed and proportionately applied and the possibilities for optimising policy following Brexit. Evidence should be submitted by 11 February 2022. The call for evidence requests answers … Continue Reading

PRA ‘Dear CEO’ letter sets out supervisory priorities for insurance in 2022

The Prudential Regulation Authority (PRA) has published a ‘Dear CEO’ letter written by Anna Sweeney and Charlotte Gerken, co-Executive Directors for Insurance Supervision at the PRA. The letter sets out the supervisory priorities for life and general insurance firms in 2022. The letter has been sent to all insurers (including third-country branches) supervised by the … Continue Reading

PRA publishes revised policy approach on insurance business transfers

The Prudential Regulation Authority (PRA) has published a final policy statement on insurance business transfers (PS1/22). The policy statement  follows a consultation that took place last year (CP16/21). A Statement of Policy has also been published entitled ‘The PRA’s approach to insurance business transfers’. The Statement of Policy takes effect from 12 January 2022. The … Continue Reading

European Commission adopts review of Solvency II

On 22 September 2021, the European Commission adopted a review of the Solvency II regime. The Solvency II regime includes the Solvency II framework directive (Directive 2009/138/EC) and delegated regulations. The review includes a legislative proposal to amend the framework directive as well as a legislative proposal for a new EU Insurance Recovery and Resolution … Continue Reading

FCA sends ‘Dear CEO’ letter to Lloyd’s and London Market firms highlighting six potential harms

FCA sends ‘Dear CEO’ letter to Lloyd’s and London Market firms highlighting six potential harms The Financial Conduct Authority (FCA) has published a ‘Dear CEO’ letter written by Charlotte Cross, Head of Department, Wholesale Insurance, to the Lloyd’s and London Market portfolio of firms. The portfolio letter sets out six areas of harm that Lloyd’s … Continue Reading

FCA publishes amendments to general insurance pricing practices

The Financial Conduct Authority (FCA) has published a policy statement, General insurance pricing practices – amendments (PS21/11). The policy statement provides amendments and clarifications to the earlier policy statement on general insurance pricing practices, published in May (PS21/5). The FCA explains that it is publishing amendments following discussions with stakeholders on the challenges involved in … Continue Reading

FCA sends ‘Dear CEO’ letter reminding general insurance intermediaries of their client money obligations

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

EIOPA publishes a report on AI governance principles for the European insurance sector

The European Insurance and Occupational Pensions Authority (EIOPA) has published a report called ‘Artificial intelligence governance principles: towards ethical and trustworthy artificial intelligence in the European insurance sector’. The report has been written in the context of the proliferation in the use of artificial intelligence (AI) in insurance and the use of Big Data in … Continue Reading

UK Government consults on amendments to insolvency arrangements for insurance companies

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

FCA publishes policy statement with final rules on general insurance pricing practices

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

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
LexBlog