The Court of Appeal has, for the first time, considered the approach courts should adopt to dealing with applications to sanction transfers of long term insurance business. In August 2019, a court had refused Prudential...
The hearing of the business interruption insurance test case appeal in the Supreme Court is now over. FCA has published the draft transcripts up to day 3, and the judges are aware of the importance of an early judgment...
FCA has published the draft transcript of day 1 of the appeal hearing in its business interruption insurance case, and a link for those who wish to watch the recording of it.
FCA has updated its website to reflect the running order for the Supreme Court hearing in its test case on business interruption insurance. The hearing started on 16 November and is expected to close on Thursday. The...
FCA has written a portfolio strategy letter to Lloyd’s and London Market Intermediaries and Managing General agents. It sees the key risks these firms present in: financial resilience and orderly wind-down...
FCA has confirmed the Supreme Court’s permission to appeal in the test case on business interruption insurance. The appeal will be heard from 16 November, probably for 4 days. RSA has confirmed it will not be...
PRA and FCA have written a joint letter to CEOs of insurance firms on the importance of being prepared for the end of the transition period, and FCA has also more generally updated its website. The regulators stress the...
FCA has published the High Court declarations made in the test case, which are the culmination of the test case judgment. The declarations set out how and to what extent the policies in the representative sample used in...
EIOPA has reminded the insurance sector that as of 31 December 2020, Solvency II and the IDD will no longer apply to the UK, and that the industry must be prepared for the consequences of UK and Gibraltar firms becoming...
FCA has confirmed the granting of “leapfrog” certificates to it, six of the insurers involved and the Hiscox Action Group for an appeal to the Supreme Court, and may now apply for permission to appeal. At...
FCA and the insurers involved in the business interruption insurance test case did not reach the hoped-for agreement on the interpretation of some key points in the judgment. As a result they have filed skeleton...
FCA has updated its information page on the consequences from the judgment in the business interruption insurance test case. It noted that it held meetings with policyholders and their lawyers over 4 days in the week of...
FCA has published its final report on its market study intro general insurance pricing practices and, alongside it, a consultation on changes to its Handbook, and rules on data publication. The key damning conclusions...
FCA says the Court has confirmed the consequentials hearing following judgment in the BI insurance test case will take place on 2 October, probably in the morning. FCA will live stream the hearing, at which the parties...
FCA has written to the CEOs of insurers following publication of the High Court judgment on the BI test case. It expresses its gratitude to the insurers that were parties to the case and to all those who have co...
The High Court has handed down its judgment in the test case FCA brought to seek clarity on key issues on business interruption insurance policies and how they have reacted to COVID-19-related claims. Overall, it agreed...
FCA has published its 4th set of General Insurance value measures data – after delaying publication because of COVID-19. It says the data now shows concerns about the value of personal accident and key cover add...
FCA has written a supervision strategy letter to the CEOs of personal and commercial lines intermediaries. The letter is intended for general insurance intermediaries with retail and/or commercial customers, loss...
The High Court has approved a Part VII transfer of an insurance portfolio from Legal and General to Reassure. The portfolio includes around 900,000 insurance-based savings, pensions, life and with-profits business and...
In the week that the Court published its agreement to one Part VII transfer involving it, Rothesay Life has announced the Court of Appeal hearing against the court decision to decline to sanction the Part VII transfer...
The FCA has today published its finalised guidance setting out its expectations for insurance firms when considering the fair treatment of existing customers in financial difficulty, due to Covid-19. The guidance...
The High Court has handed down its judgment on the Part VII transfer application between Rothesay Life PLC and Monument Life Insurance DAC. On 31 July, the court approved the transfer of around 400 in-force life...
Following the conclusion of the test case trial, FCA has noted increasing concerns about how insurers are calculating non-damage BI claim payments in situations where they have agreed liability. Specifically, they are...
The test case FCA brought to get court clarity on the application of certain clauses in a number of business interruption insurance policies is now complete. FCA has now published the draft transcripts for days 1-7 of...
FCA has published the draft transcript from Day 2 of the Business Interruption Test Case hearing. Counsel developed the arguments from the details discussed on the first day, with reference to specific policies, and to...
Lloyd’s has confirmed that, as of the end of the Transition Period on 31 December, Members’ policies will be transferred to Lloyd’s Insurance Company SA. The affected policies will be those where all...
FCA has published the draft transcript of Day 1 of the business interruption insurance test case. Much of the first day focused on how the pandemic developed, the actions of UK government and the effects on business...
FCA has updated its list of documents relating to the business interruption insurance test case in preparation for the trial starting on 20 July. The documents now published are: the agreed list of issues and common...
FCA has published the Defendants’ skeleton arguments in the business interruption insurance test case as well as the Defendants’ joint skeleton arguments on the principles of contractual construction and on...
FCA has published its and the Intervenors’ skeleton arguments for the trial, which will commence on 20 July. Over the weekend, it published: its skeleton argument: this runs to over 300 pages and explains, among...
EIOPA has clarified its expectations on product governance during Covid-19. It has asked manufacturers of insurance products to: identify which products are affected as a result of Covid-19; assess possible unfair...
FCA has published its Reply and defence to Counterclaims to the Defences of the insurers in its Business Interruption Insurance test case, as well as its amended Particulars of Claim, the judgment from the first Case...
We have written an article on how courts are likely to approach situations where employees seek to claim for injuries arising through exposure to Covid-19 in the workplace.
The European Commission is seeking views on its review of Solvency 2. Responses are by way of a questionnaire which is designed to enable the Commission to get views on key elements of the regime, including...
PRA is consulting on its approach to publication of Solvency 2 technical information at the end of the transitional period. It proposes: to adopt the same technical methodologies as EIOPA with limited exceptions, mainly...
FCA has published the details of, and a provisional transcript from, the second case management conference in its business interruption insurance test case. Key directions include: the permitted interventions of the...
FCA has published updates on Covid-19 related cancellations and insurance claims. Its consumer guidance notes that consumers should first speak to their travel provider, and should think carefully before accepting...
EIOPA has published a further discussion paper on the methodological principles of insurance stress testing. Following its first paper, last year, it is now planning to add some new elements to its stress test toolbox...
FCA’s latest update on its business interruption insurance test case: published the sealed Court Order from the Case Management Conference on 16 June; published the Defences of the defendants to the test case...
PRA has written a Dear CEO letter to firms participating in the 2019 Insurance Stress Test. The letter covers: Covid-19 resilience: tests showed the sector was robust to downside stresses, with the highest uncertainty...
Following the first case management conference in FCA’s test case on business interruption insurance, it has now published details of the order made by Mr Justice Butcher. The order: agrees to an expedited case in...
Following its consultation on 1 June, FCA has now finalised its guidance to insurers and intermediaries, setting out its expectations on how they should handle complaints and claims under business interruption policies...
FCA has confirmed that the first Case Management Conference before a judge in its business interruption insurance Test Case is to take place on 16 June. At the conference, the judge will be invited to consider...
FCA has published a new set of documents relating to the test case it is bringing to get clarity on the coverage of business interruption insurance during the Covid-19 crisis. It has on 10 June (today) announced that it...
Following a short consultation period, FCA has now published (with a few clarifications following responses to the consultation) its finalised rules and guidance for insurers and insurance intermediaries to consider the...
We have now written a detailed article on the progress in FCA’s Business Interruption insurance test case, including summaries of FCA’s draft guidance, and its selection of polices, wordings and assumed...
FCA has updated on its progress towards its test court case on business interruption insurance policies. It has now reviewed around 500 policies from 40 insurers, and has identified 17 policy wordings that capture most...
PRA has updated its policy documents following its consultation on the Prudent Person principle under Solvency 2. PRA received only 7 responses to its consultation, but have made some clarificatory changes following...
PRA has updated on authorisation and supervision of insurance SPVs following consultation, and has published updated rules, an updated supervisory statement and an updated multi-arrangement insurance SPV new risk...
FCA has provided further information on what it is doing to prepare for the test case it plans to bring to clarify various uncertainties over how business interruption insurance should operate during Covid-19. FCA notes...
FCA has published its finalised guidance for insurance and premium finance firms on dealing with Covid-19 and customers in temporary financial difficulty. The guidance should be complied with no later than 18 May and is...
FCA has updated its webpage on insurance and coronavirus to include guidance on access to premises. It notes that some consumers may be unable to access their residential properties and some businesses may not be able...
FCA has announced its intention to obtain a court declaration to resolve contractual uncertainty in business interruption (“BI“) insurance cover. It is also proposing a series of measures to support both...
FCA has sent a Dear CEO letter on business interruption insurance for SMEs. It says its research to date indicates that most policies have basic cover, do not cover pandemics and so would not be obliged to pay out in...
The Treasury Committee has written to the ABI, asking for information to help understand how the insurance industry is responding to coronavirus and to FCA’s guidance. The letter asks: how many members have ceased...
FCA has set out its position on how it expects insurers to act given the unprecedented impact of Covid-19. Above all, it expects firms to consider very carefully the needs of customers and to be flexible in how they...
EIOPA has set out its expectations on insurers as they try to manage the risks Covid-19 presents. Its key messages are: the importance of business continuity. It says regulators can help by being flexible on supervisory...
We have written an article about FCA’s findings on potential harm caused by the general insurance distribution chain and its guidance to firms in the sector setting out its expectations of them.
EIOPA has confirmed its guidelines on outsourcing to cloud service providers are now available to national supervisors. The guidelines address: how to determine whether cloud services are within the scope of...
FCA has published its policy statement and final rules to help consumers with serious pre-existing medical conditions to understand the travel insurance market better. The new requirements will: require firms that sell...
FCA has written to the Boards of Directors of insurers setting out its views on the key risks of harm that personal and commercial lines insurers can post to their customers and the markets. It is telling firms about...
The PRA has announced that they have temporarily increased their supervision of Lloyd’s of London in relation to their whistleblowing processes. This results from the notification to the PRA by the Society of...
The PRA has published a ‘Dear Chief Actuary’ letter following its review of firms’ reserving during 2019. The letter contains feedback from the PRA’s reviews which included work on casualty...
The PRA has published a Consultation in relation to the Solvency II Prudent Persons Principle. This sets out the PRA’s proposed expectations for investment by firms in accordance with the Prudent Person Principle...
The International Underwriting Association (IUA) has published two new cyber exclusion clauses: Cyber Loss Absolute Exclusion Clause (IUA 09-081): provides a broad exclusion against losses arising from the use of a...
EIOPA has published its study on the use of big data analytics in motor and health insurance. It had noted a strong trend towards data-driven business models throughout the insurance value chain. Insurers have always...
EIOPA has published a report on its 2018 supervisory activities. EIOPA reported that in 2018 it achieved key milestones including: issuing a cross-border insurance technical opinion, developing a common framework to...
At the World Economic Forum in Davos, the Swiss and UK governments signed a deal to allow both countries to trade freely within the insurance sector post-Brexit. The agreement will come into force when the current EU...
On 25 January 2019 EIOPA published findings of its peer review, which examined how national competent authorities (NCAs) assess the propriety of administrative, management or supervisory body (AMSB) members and...
The US Department of the Treasury and Office of the US Trade Representative have confirmed their intention to sign a bilateral agreement on prudential measures on insurance and reinsurance which is consistent with the...
On 30 October 2018 the FCA announced that it had fined Liberty Mutual Insurance Europe SE (Liberty) £5,280,800. The fine relates to failures in Liberty’s oversight of claims and complaints relating to mobile...
On 31 October 2018, the FCA published the results of a thematic review on the pricing practices of household insurance firms. The review uncovered a number of issues on pricing practices. As a consequence, the FCA...
On 29 June 2018 the government published a draft statutory instrument, the Third Parties (Rights Against Insurers) Act 2010 (Consequential Amendment of Companies Act 2006) Regulations 2018. This regulation will give...
Lloyd’s has published guidance for non-UK EEA coverholders on the actions they must take to ensure IDD compliance. The guidance focuses on agreement between all parties in the distribution chain on who the product...
Lloyd’s has announced that it has received licence approval from the National Bank of Belgium for Lloyd’s Insurance Company S.A. Post-Brexit, this subsidiary of Lloyd’s will be able to write non-life...
ABI and BIBA have published a set of guiding principles and action points that insurers and brokers should follow, which the associations intend will address some of the issues that currently lead to excessive...
Treasury has made the Insurance Distribution (Regulated Activities and Miscellaneous Amendments) Order 2018 and laid it before Parliament on 1 May. The Order makes changes, mainly to the RAO, to reflect the changes to...
Insurance Europe has published two position papers relating to Brexit. The first paper discusses the need for a transitional arrangement, stating that such an arrangement is crucial for business continuity until legal...
We have written an article that assesses the UK’s developing cyber insurance market in the context of the changing regulatory landscape and looks at the possible benefits and risks associated with the proposal to share...
In light of Brexit-related concerns over continuity of service in the insurance sector, the London Market Group (LMG) has issued a proposal to the UK government detailing a mechanism whereby both the UK and EU are...
The FCA has today published terms of reference for a market study into the Wholesale insurance broker market. It is proposed that the market study will focus on how effectively competition in the market is working, in...
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