Tag: Insurance

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

Greater outsourcing in German life insurance sector predicted following expected change to Criminal Code

The adoption of a draft law amending criminal law provisions protecting insurance related information will finally enable life insurers to make wider use of outsourcing by removing disclosure to service providers from the scope of Sec. 203 German Criminal Code (StGB) under certain conditions. In spite of some uncertainties, this is a major breakthrough and … Continue Reading

Product suitability obligation and intervention powers to be fast-tracked: Government responds to calls for Royal Commission into the banks

In response to Opposition calls for a Royal Commission into the banking sector, the Australian Government has announced a $127 million reform package aimed at increasing the powers of Australia’s corporate watchdog, ASIC. A key component of that package will be the accelerated implementation of two key recommendations of the Financial System Inquiry: an obligation on … Continue Reading

ASIC sounds warning on add-on insurance products: time to get your houses (and car yards) in order

In his recent speech at the Insurance Council of Australia Annual Forum ASIC’s Peter Kell delivered a scathing commentary on the state of the add-on insurance market, saying that the industry had made insufficient progress towards delivering better consumer outcomes in the area and sounded a warning: if ASIC is still raising similar concerns in … Continue Reading

ASIC raises concerns over adequacy of Professional Indemnity (PI) insurance for AFS licensees

ASIC to increase surveillance to monitor compliance with PI insurance requirements AFS licensees should check their PI policy to determine whether cover is adequate Insurers should review their PI offerings to ensure cover is compliant with RG 126 Following an eight month review, ASIC has released its findings on the PI insurance market and areas … Continue Reading

Insurance in Australia: 2015 in review

Continued market consolidation, technology driven disruption and a shift towards behavioural based conduct regulation were the standout themes in the Australian insurance sector over the last 12 months. We take a brief look at the year that was and share our thoughts on what 2016 looks like. Keep ahead or be left behind: rise of … Continue Reading

Financial System Inquiry (FSI) – Government Response: hidden pitfalls for insurance brokers and underwriting agencies?

The Government’s response to the FSI contains both good and bad news for insurers and brokers One issue of concern is the proposal that ASIC must approve all changes in control of AFS Licensees.  This will significantly expand such regulatory oversight beyond authorised insurers to a multitude of insurance brokers and underwriting agencies. The good … Continue Reading

Insurers “strongly encouraged” to improve disclosure of prudential matters

On 22 June 2015, the Australian Prudential Regulation Authority (APRA) released a letter to all Chief Executive Officers (CEOs) of general insurers, Level 2 insurance groups and life companies (collectively, the insurers) encouraging them to adopt better public disclosure practices for prudential matters. The current capital adequacy framework for insurers is based on a three … Continue Reading

Credit cards to improve travel insurance disclosure

Credit card providers have agreed to provide customers with clearer information regarding when ‘complimentary’ travel insurance is activated and to what extent cover is provided. Many credit card holders have access to ‘complimentary’ travel insurance. However, many of these do not know that they have the benefit of cover, how to activate it, how it … Continue Reading

ASIC runs over No Claims Discount schemes

The Australian Securities & Investments Commission (ASIC) has continued its campaign for improved disclosure by insurers and their agents – this time in the motor vehicle insurance sphere. On 26 February 2015, ASIC published a report that examines the operation of no-claims discount (NCD) schemes for motor vehicle insurance and concluded that the schemes do not … Continue Reading

Insurance in Africa

There are many opportunities in Africa because the insurance market is largely untapped.  Below are some of the legal issues you need to be mindful of when doing business in the continent. For more detail read our Introduction to insurance business in Africa: Ten things to know. 1. Jurisdiction Africa is made up of 55 … Continue Reading

ASIC turns up heat on AFSL breach reporting

ASIC has reminded AFS licensees of their obligation to report significant breaches to ASIC promptly and of the need to ensure that internal risk management systems are sufficiently robust to identify, assess and escalate breaches and report significant breaches to the regulator. In an open letter to the Institute of Internal Auditors Australia, and a … Continue Reading

Crucial next steps for the Murray Inquiry

The next few months provide a crucial opportunity for participants in the Australian financial services industry to influence the final report of the Australian Financial System Inquiry, headed by David Murray. The Interim Report has generated a lot of debate around the role of vertically integrated groups, the favourable funding and regulatory position of the … Continue Reading

Conglomerates on APRA’s radar

Major financial institutions should prepare for group wide regulation as Australia’s peak prudential regulator gears up for stricter supervision of conglomerates. The Australian Prudential Regulation Authority’s (APRA) planned framework for supervising conglomerates arises from its concern around the potential contagion risks faced by APRA-regulated entities within conglomerate groups.  APRA is concerned that the current arrangements … Continue Reading
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