Tag: Insurance

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

Open Insurance is finally coming to Australia… what does this mean for insurance?

Open Insurance is coming! On 24 January 2022, the Treasury released the Consumer Data Right (CDR) Strategic Assessment Outcomes Report (Outcomes Report). The Outcomes Report recommended expanding Australia’s CDR to Open Finance. The recommendation follows the launch of open banking in Australia in 2020, and a number of reports concerning the expansion of the CDR … 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

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

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

EIOPA consults on a framework to address value for money risk in the European unit-linked market

The European Insurance and Occupational Pensions Authority (EIOPA) has launched a consultation on value for money risk in the European unit-linked insurance market. EIOPA has previously expressed concern that while unit-linked products can offer important benefits for policyholders, costs for some products remain too high. The low interest rate environment, in addition to market shocks … 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 on its supervisory strategy for Lloyd’s and London Market Intermediary firms

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

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 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

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

FCA sends ‘Dear CEO’ letter to insurance intermediaries on its supervision strategy for personal and commercial lines

The Financial Conduct Authority (FCA) has sent a ‘Dear CEO’ letter from Roma Pearson, Head of Department, Retail General Insurance, to intermediary firms setting out the key risks posed by insurance intermediaries to customers. The letter asks firms to consider the extent to which the risks identified exist in their business and assess strategies to … Continue Reading

FCA publishes CP19/23: Signposting to travel insurance for consumers with medical conditions

On 15 July 2019, the Financial Conduct Authority (FCA) published Signposting to travel insurance for consumers with medical conditions (CP19/23). CP19/23 continues the work undertaken by the FCA over the past few years on ensuring that vulnerable customers can access insurance. In June 2017 the FCA published a Call for Input on access to insurance … Continue Reading

Working Group on Sterling Risk-Free Reference Rates urges EIOPA to remove the recognised Solvency II barriers to IBOR transition

On 12 July 2019, the Working Group on Sterling Risk-Free Reference Rates published a letter from Tushar Morzaria, chair of the working group, to Gabriel Bernardino, EIOPA chair, encouraging EIOPA to go beyond monitoring the IBOR transition to now actively removing the recognised Solvency II barriers to this transition. The letter expressed concerns surrounding the … Continue Reading
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