Latest Articles

On 8 January 2019, the Solvency 2 and Insurance (Amendments, etc.) (EU Exit) Regulations 2019 were published. These draft regulations aim to address deficiencies in “retained” EU law in relation to the prudential regulation of insurers and reinsurers after the UK has left the EU. The regulations change legislation to reflect the fact that the UK will no longer be in the EU.…
The European Insurance and Occupational Pensions Authority (EIOPA) has published a notice on its website to highlight the risks of firms having no contingency plans in place to ensure service continuity should the UK withdraw from the EU without an agreement. EIOPA acknowledges that insurers with the largest cross-border business have taken action but expresses concern about the 124 insurance undertakings that have no or insufficient contingency plans in place to ensure service continuity after…
On 31 October 2018, the Financial Conduct Authority (FCA) launched a package of measures to address concerns about pricing practices in the general insurance (GI) market. The measures follow the publication of the results of a thematic review (Pricing practices in the retail general insurance sector: Household insurance (TR18/4)). The FCA has also published a discussion paper on fair pricing in financial services markets (DP19/9).…
The European protocol governing the Cooperation of the Competent Authorities of the Members States of the European Union in Particular Concerning the Application of Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on Insurance Mediation (more commonly referred to as the “Luxembourg Protocol”) has been replaced by an updated agreement to reflect the new obligations under the Insurance Distribution Directive ((EU) 2016/97 or ‘IDD’).…
The Competition and Markets Authority (CMA) has received a ‘super-complaint’ from Citizens Advice in respect of price discrimination against long-term customers. Citizens Advice is seeking a response from CMA including a commitment to initiating a market study to identify remedies to end overpricing for disengaged or loyal customers.…
 On 10 September 2018, there was published in the Official Journal of the  EU (OJ) Commission Delegated Regulation (EU) 2018/1221 of 1 June 2018 amending Delegated Regulation (EU) 2015/35 as regards the calculation of regulatory capital requirements for securitisations and simple, transparent and standardised securitisations held by insurance and reinsurance undertakings. The Delegated Regulation will enter into force on 30 September 2018 and will apply from 1 January 2019.…
On 26 July 2018, the PRA released a policy statement on Solvency II and changes to reporting format, offering feedback from their consultation on the same topic (CP 11/18). The feedback was generally supportive of the proposed changes, although it noted that firms should have sufficient time to update their software capabilities to enable submission via XBRL format. The feedback considered the following: the timing and availability of the required materials to submit the information…
The insurance industry is looking at the means to develop new business models that rely on the mining of large data sets in order to identify customers, price risk and analyse claims. Not only does the application of artificial intelligence (AI) have the potential to reduce costs by reducing headcount, it also has the potential to improve the accuracy and speed of decision-making and transform business processes. Ultimately, the benefits of AI should be significant…
The Law Commissions of England and Wales and of Scotland have published a new draft of the Insurable Interest Bill. This most recent draft takes into account feedback received on an earlier draft, published in April 2016. The Bill forms part of the wide-ranging review of insurance contract law that has resulted in the Consumer Insurance (Disclosure and Representations) Act 2012 and the Insurance Act 2015.…