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
general insurance
PRA launches 2022 Insurance Stress Test

The Prudential Regulation Authority (PRA) has launched the 2022 Insurance Stress Test (IST). The IST is run every two years and seeks information from the largest life and general insurance companies in the UK.
In a ‘Dear CEO’ letter sent to the participating firms, the PRA sets out its objectives for…
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…
UK government launches consultation on Solvency II reforms

The UK Government has launched its long-awaited consultation on proposed reforms to the Solvency II regime in the UK. Since leaving the European Union, the UK Government is now able to adapt its version of the Solvency II regime to more closely suit the UK insurance market. The UK Government believes that if certain changes…
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…
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…
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…
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…
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
…
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…