Lucy HadrillOn 13 May 2022, the FCA published a consultation paper on expanding the dormant assets scheme (the Scheme). The Scheme allows banks and building societies to pay dormant monies to an authorised reclaim fund which then...
Category - Insurance
Rawa Hussain
Emma RadmoreTPT launches consultation on climate transition plans
The Transition Plan Taskforce (TPT) has launched a call for evidence on a sector-neutral framework for private sector transition plans. The framework will inform UK regulations for certain financial sector firms and...
FCA issues update on multi-occupancy buildings insurance
FCA has written to Michael Gove MP, Secretary of State for the Department for Levelling Up, Housing and Communities, to provide an update on the FCA’s review of the annual price increases for multi-occupancy...
Harshil PatelPRA launches biennial insurance stress test
PRA has launched its biennial stress test for life and general insurers. It has sent the test to the largest firms and has asked for submissions by 28 September, and is hosting a seminar on 11 May with a Q&A...
Treasury consults on reforms to Solvency II
HM Treasury has published its consultation on post-Brexit reforms to the Solvency II regime which it hopes will unlock investment, increase market access for new insurers and offer greater consumer choice. The reforms...
Head of Insurance Policy at PRA gives speech on the future of international insurance
Alan Sheppard, the head of Insurance Policy at the PRA, discussed how the PRA can foster the role of the UK as an international centre for insurance and reinsurance business. His speech focused on: the importance of...
Funeral plans update: RAO amendments made
The FSMA (Regulated Activities) (Amendment) Order 2022 has been published, together with an explanatory memorandum. It makes several amendments to FSMA and secondary legislation, primarily the RAO, in preparation for...
PRA consults on fees and levies for 2022/23
PRA has issued a consultation paper setting out proposals for its fees for 2022/23. The proposals include: the fee rates to meet the PRA’s 2022/23 AFR; fees applicable to firms in the temporary regimes; changes to the...
PRA publishes Business Plan 2022/23
The PRA Business Plan sets out the PRA’s strategy, workplan, and budget for 2022/23. The PRA’s strategy will be delivered through the following strategic goals: Retain and build on the strength of the banking and...
PRA updates on capital arbitrage transactions approach
The PRA has issued a statement acknowledging that some PRA-regulated firms have conducted (or may be considering doing so) deficit reduction transactions with their defined benefit pension schemes that are structured to...
Lords Committee writes to Treasury on commercial insurance and reinsurance regulation
Lord Hollick, Chair of the Industry and Regulators Committee, has written to John Glen following Mr Glen giving evidence to the Committee’s inquiry into commercial insurance and reinsurance regulation. Amongst...
Ombudsman News looks at storm damage
The latest edition of Ombudsman News from FOS covers not only its plan and budget for 2022/23 (which FIN has covered separately) but also guidance for consumers about storm damage complaints. The guidance contains...
FCA publishes operational resilience insights for insurance firms
On 29 March 2021, the FCA, together with the BoE and PRA, published a shared policy statement on requirements to strengthen operational resilience in the financial services sector. The rules and guidance will come into...
Lloyd’s responds to market misconduct
Lloyd’s has issued a notice of censure to Atrium, a managing agent in the Lloyd’s market. The firm admitted three charges of misconduct, and Lloyd’s Enforcement Board levied its largest ever fine of...
PRA Occasional Consultation on minor changes
The PRA has issued a Consultation Paper setting out proposals to make minor amendments to UK Technical Standards (UKTS), PRA rules, supervisory statements, Legacy Supervisory Statements, and a Statement of Policy...
Insurance business transfer scheme permitted
An application under Part VII of FSMA 2000 was made for sanctioning an insurance business transfer scheme which involved the transfer of insurance policyholders from Assured Guaranty (Europe) PLC (in the UK) to Assured...
UK to target provision of insurance to Russian companies with next sanctions round
The new round of UK economic sanctions will prevent Russian companies in the aviation and space industry from accessing the UK insurance sector. The measures will apply to insurance and reinsurance services accessed...
PRA speaks on insurance supervisory priorities
Charlotte Gerken of the PRA has spoken of its supervisory priorities for the sector during 2022. She looked at: climate change diversity and inclusion operational resilience: she commented in particular that, in...
FCA launches claims management companies fees cap
FCA has introduced restrictions on claims management companies (CMCs) to prevent excessive charging of fees to consumers owed compensation from financial services firms. The cap on charges is dependent on how much...
FCA makes new rules
The FCA’s latest Handbook Notice confirms changes to: apply the rules set out in the Funeral Planning Conduct of Business (FPCOB) sourcebook to funeral plan providers selling their own plans directly to customers...
Ombudsman News features data, diversity and storm damage
The latest edition of Ombudsman News features items on the latest complaints data and the FOS diversity, inclusion and wellbeing reports featured in other posts, and also notes that FOS often sees complaints from...
Dormant Assets Act gets Royal Assent
The Dormant Assets Act got Royal Assent on 24 February, The Act expands the scope of “dormant assets” that has encompassed cash in bank and building society accounts since 2008 to include a greater range of...
Treasury sets out bold reforms to Solvency II
Economic Secretary to the Treasury, John Glen MP, has delivered a speech to the Association of British Insurers Annual Dinner which set out bold reforms to Solvency II. The proposed reforms include: a substantial...
UK Finance publishes response on Consumer Duty
UK Finance has published its response to the FCA’s second consultation on proposals for a new Consumer Duty. UK Finance welcomes the changes FCA has made since its first consultation (in particular dropping the...
FCA updates on funeral plans
The FCA has published a statement on assessing authorisation applications from funeral plan providers. The assessment process is to ensure that: firms sell products which offer fair value, meet consumer needs and are...
FCA updates on GI value measures
FCA has updated its webpage on general insurance value reporting to clarify what firms are expected to report in respect of legal expenses and vehicle breakdown products. For these products, firms are not required to...
FCA finalises Part VII conduct expectations guidance
FCA has published an updated version of its guidance on how it approaches a review of Part VII insurance business transfers. The update, which FCA consulted on last July, gives clarity on some points, and has been...
Bank of England launches second round of climate change stress test exercise
As promised, the Bank of England (Bank) has today launched the second round of the Biennial Exploratory Scenario (BES) exercise on financial risks from climate change. The exercise aims to explore what financial risks...
CMA writes to Tesco Bank acknowledging action taken to end breach
The CMA has written to Tesco Bank acknowledging the steps it has taken to end the breach of the Private Motor Insurance Market Investigation Order 2015 (the Order). Article 3 of the Order requires that any additional...
EIOPA consults on retail investor protection
EIOPA is consulting on retail investor protection in relation to the sale of insurance-based investment products (IBIPs). The proposals cover five different areas: Enhancing consumer engagement with disclosures...
FOS looks at current initiatives
The latest edition of Ombudsman News reminds firms there is still time to respond to its consultation on its plan and budget, and at its wider work, including the wider implications framework and how it is working on...
FCA explains multiple-occupancy buildings insurance work
FCA has written to CEOs of insurance firms and brokers explaining the work it is carrying out in the insurance market for multiple-occupancy residential buildings. FCA wants to ensure residential leaseholders get...
PRA calls for technical input on insurance stress test
PRA will be conducting an insurance stress test in both life and general insurance markets from May 2022. It is seeking, by 17 March, feedback on any aspect of the stress tests, and has published updated scenarios with...
Parliament launches commercial insurance inquiry
The Industry and Regulators Committee has published a call for evidence for a new inquiry into commercial insurance and reinsurance regulation. It is asking for evidence by 11 February on the roles of the regulators and...
PRA sets out supervisory priorities for 2022
The PRA has sent Dear CEO letters to PRA-regulated international banks, insurance firms and UK deposit-takers setting out its supervisory priorities for 2022. For banks, the PRA’s priorities relate to: Financial...
PRA updates insurance business transfer SoP
PRA has published its feedback on responses to its consultation in CP 16/21 on insurance business transfers, and has published an updated Statement of Policy. There were not many respondents, and those who responded...
FCA updates on GI value reporting
FCA has updated its webpage on reporting of general insurance value measures to clarify which firm is responsible for reporting in various scenarios. The requirements are all set out in SUP 16.27.8 but FCA has set out a...
FCA outlines new authorisation fee structure
The FCA has set out the new structure for authorisation application fees which takes effect on 24 January 2022. The current charges are being condensed into 10 simple pricing categories and the following additional...
EIOPA publishes report on application of the IDD
EIOPA has published its first report on the application of the Insurance Distribution Directive. The IDD requires EIOPA to produce such a report every 2 years, but EIOPA postponed the delivery of this report from 23...
Emma BondInsurance Europe responds to ESMA call for evidence
Insurance Europe has published its response to ESMA’s call for evidence on aspects of retail investor protection. Key points in the response include: insurance-based investment products (IBIPs) account for c.90%...
Check out our new and improved regulatory timeline
In conjunction with the FIN. blog, we have launched our new and improved horizon scanning tool over on the Womble Bond Dickinson website. Our timeline highlights key regulatory deadlines, legislation and insights...
FCA reminds firms and consumers of insurance renewal rule change
FCA has reminded firms and consumers of the new requirements taking effect from 1 January that will prevent insurers from quoting customers a higher price for renewing home or motor insurance than they would charge a...
EESC publishes opinion on Commission’s Sustainable Finance Package
The European Economic and Social Committee (EESC) has published its opinion on the European Commission’s Sustainable Finance Package. The package consists of: the Communication from the Commission to the European...
EIOPA reports on IDD sanctions
EIOPA has published its second annual report on administrative sanctions and other measures imposed by national competent authorities during 2020 under the Insurance Distribution Directive (IDD). The authorities...
FCA updates on rule changes
FCA’s latest Handbook Notice confirms, among other things: changes to SUP to clarify what FCA expects to see reported on form FIN-A changes to LIBOR rules (previously reported in FIN) and changes to the value...
UK-US Financial Regulatory Working group holds fifth meeting
The fifth meeting of the UK-US Financial Regulatory Working group was held on 15 December 2021 and focussed on the following 7 themes: international and bilateral cooperation; sustainable finance; crypto-assets and...
EIOPA publishes results of Insurance Stress Test
EIOPA has published the results of its 2021 Insurance Stress Test in which it assessed the industry’s resilience to a prolonged COVID-19 scenario in a “lower for longer” interest rate environment. To...
PRA updates on Solvency II reporting review
The PRA has published a policy statement (PS29/21) on phase 1 of its review of reporting requirements under Solvency II. In light of the feedback received on its proposals, the PRA has made a number of changes (set out...
Ombudsman News looks at BI “at the premises” complaints
The latest edition of Ombudsman News from FOS looks not only at its plan and consultation (which FIN has covered separately) but also at complaints it has looked at relating to “at the premises” cover in...
PRA updates on the 2022 cyber stress test
The PRA has announced that it will invite a number of firms to participate in a voluntary cyber stress test. The stress test will focus on a severe data integrity incident as the disruption scenario and will test...
FCA publishes second consultation on Consumer Duty
Following its initial consultation in Q2 this year (CP21/13), the FCA has set out the responses it received and has published a second consultation on its plans for a new Consumer Duty (CP21/36). The FCA received 235...
BoE speaks on Solvency II reform
Andrew Bailey, Governor of the Bank of England, today gave a speech on the opportunity to reform Solvency II post-Brexit. He focused on what he identified to be the key foundations of public policy in prudential...
FCA publishes policy statement on new CMC charging rules
The FCA has published its policy statement on restricting CMC charges for non-PPI financial products and services claims. This follows the FCA’s corresponding consultation which ran from 21 January to 21 April...
FCA publishes GI pricing attestation forms
FCA has published examples of the forms it will require from general insurance firms making their first, and then their subsequent attestations on compliance with the pricing rules. The first attestation can be sent in...
Dormant Assets Bill under inspection
The Dormant Assets Bill is making its way through the House of Lords, where members have voted on two changes to the Bill at report stage. It will now has its third reading on the Lords before moving to the Commons. The...
FCA writes to funeral plan providers
The FCA has published a Dear CEO letter on applying for authorisation as a pre-paid funeral plan provider or intermediary. The letter provides the following information to support firms’ preparations for...
FCA to issue compliance survey to GI firms
The FCA has added a new section to its webpage on general insurance pricing – attesting compliance. The rules in PS21/5 require senior managers of general insurance firms to provide annual confirmation that their firm...
PRA publishes responses to CP13/21 occasional consultation paper
The PRA has published a policy statement (PS25/21) which sets out its final policy on the various proposals it consulted on in occasional paper CP13/21. These proposals included: For banks, building societies and PRA...
LMA updates guidance on pricing and product reviews
The LMA has issued guidance on FCA’s new Pricing Practices rules and associated Product Reviews. The guidance includes a template with notes and examples on how intermediaries should exchange required information...
FCA confirms final rules on funeral plans regulation
Following its consultation earlier this year, the FCA has published its final rules on the regulation of pre-paid funeral plans which will take effect from 29 July 2022. The latest policy statement sets out additional...
Government sets out net zero transition plans
The government has set out its plans for the UK to be the world’s first net zero aligned financial centre and has called for other countries to follow suit. The government has confirmed it will be introducing...
CMA writes to NewDay on PPI Order breaches
The CMA has written to NewDay Ltd about 5 breaches of the PPI Market Investigation Order 2011. The breaches, which have affected c.27,000 customers, relate to: NewDay’s failure to issue Annual Review statements to...
FCA publishes updated complaints data
FCA has published its six-monthly set of data on complaints that firms receive. Its latest findings include: a 7% decrease in complaints from H2 2016, with the 2.04m complaints being the lowest level since late 2016;...
FCA adds new question to GI pricing FAQs
FCA has added an additional question to its Q&As on its general insurance pricing practices rules. The new question relates to whether certain benefits such as events tickets, rare products or products of benefit...
European Commission adopts work programme for 2022
The EU Commission has adopted its 2022 work programme which sets out the next steps in its agenda towards a greener, fairer, more digital and more resilient Europe. The programme contains 42 new policy initiatives...
FCA portfolio letter to Lloyd’s participants
The latest portfolio supervision letter from FCA is addressed to Lloyd’s and London market insurers and others. The letter follows on from the November 2020 version and, generally, commends the market for its...
IAIS reports on first quantitative study on climate change impacts on insurers’ investments
The International Association of Insurance Supervisors (IAIS) has published the 2021 special topic edition of its Global Insurance Market Report (GIMAR). As a first global quantitative study, the report “The...
Cynthia MaEIOPA comments on Solvency II proposals
EIOPA has commented on the European Commission’s package of Solvency II proposals, which comprise an amended Solvency II Directive, a Communication on it, and a proposal for an Insurance Recovery and Resolution...
Up next from the regulators
Nikhil Rathi and Sam Woods, CEOs of the FCA and PRA respectively, have set out the regulators’ current areas of focus. Highlights from Mr Rathi’s speech include that the FCA: is collaborating with...
EBA to enhance monitoring of digital platform use in EU banking and payments sectors
A Report published by the European Banking Authority (EBA) today on the “platformisation” (use of digital platform-based business models) of the EU banking and payments sector: identifies the rapid growth in...
FCA publishes insurer claims data
The FCA has published the latest data it has collected (as of 5 September 2021) from all affected insurers on the progress of their non-damage business interruption insurance claims. The data includes the number of: BI...
CMA writes to LBG on PPI Order breach
The CMA has written to Lloyds Banking Group about its non-compliance with the Payment Protection Insurance (PPI) Market Investigation Order 2011. LBG breached the PPI Order by failing to include the monthly PPI benefit...
Commission updates PRIIPs KID standards
The European Commission has adopted new technical standards for the PRIIPs KID, which will apply from 1 July 2022 (so long as approved by the Council and Parliament), and will finally apply to all retail products. The...
PRA consults on insurance holding company definition
PRA is consulting on its approach to interpreting and applying the definition of “insurance holding company“. It wants to distinguish an insurance holding company from a mixed-activity insurance holding...
Andrew Bailey writes to Chancellor on prudential regulation
PRA has published Andrew Bailey’s response to the Chancellor on Treasury’s recommendations on the PRA’s remit. He notes PRA’s work to ensure the Brexit transition period ended without any...
FCA publishes personal and commercial line insurance portfolio letter
FCA has published its supervisory strategy letter to personal and commercial lines insurers. The letter is dated 28 April, but only just published. The letter updated FCA’s previous communication of January 2020...
FCA tells insurance firms to be ready for fair value changes
FCA is worried that many firms are not currently compliant with its rules and guidance on product governance and value, and will not be ready to meet the new requirements which take effect on 1 October. It has carried...
FCA publishes life insurance supervisory letter
FCA has published its supervisory strategy for life insurers. The letter updates its communication from December 2018 and looks at: how the 2018 strategy has progressed; FCA’s updated view of the key harm risks;...
FCA updates on GI pricing
FCA has made some minor changes to the rules on general insurance pricing which were published in May. Among other things, the changes: clarify how the rules apply to firms that offer discounts or incentives to...
CLLS responds to Treasury consultation
The City of London Law Society (CLLS) has published its response to HM Treasury’s consultation paper “Amendments to the Insolvency Arrangements for Insurers” which was published on 20 May 2021. CLLS...
EIOPA report on peer review of key functions
EIOPA has published a follow-up report to the 2018 peer review on the supervisory practices for the application of the proportionality principle in government requirements regarding key functions. The follow-up report...
Next steps for the Consumer Duty
The FCA’s consultation on a new Consumer Duty has now closed and the FCA has outlined its next steps. After considering the responses, the FCA will set out the proposed text for any new rules in a second...
FCA updates on regulating the funeral plans sector
The FCA has updated its webpages on regulating the funeral plans sector to set out what firms should be doing to prepare for FCA regulation on 29 July 2022. It has also published the authorisation and variation of...
PRA sets scope of 2022 insurance stress test
The PRA has written to the largest PRA-regulated life and general insurers to set out the high-level scope for the 2022 Insurance Stress Test (IST) exercise. For life insurers, the IST will focus primarily on economic...
ESMA publishes calls for advice on PRIIPs and wider retail issues
ESMA has published: a call for advice it has received on certain aspects of retail investor protection in which the Commission asks ESMA to advise on: addressing and enhancing investor engagement with disclosures;...
Ombudsman News looks at BII complaints
The latest edition of Ombudsman News looks at complaints about business interruption insurance (BII) after the test case. In the case of most complaints, the insurer is now accepting that the policy provides cover...
PRA consults on insurance business transfers
The PRA has launched a consultation on its approach to insurance business transfers. The proposals update the PRA’s approach following legislative changes post-Brexit and provide greater clarity on the PRA’s...
FCA confirms new rules
FCA has confirmed various rule changes in its latest Handbook Notice: to the technical standards under EMIR, to give firms clarity and to align the UK in implementing various Basel Committee and IOSCO recommendations...
PRA writes to firms on Solvency II Review
The PRA has written to the CEOs of PRA-regulated Solvency II firms to introduce the Solvency II Review Quantitative Impact Study and to set out the PRA’s thinking on two key areas being assessed under it – the...
FCA updates on travel insurance expectations
The FCA has updated the travel insurance section of its insurance and coronavirus webpage. The FCA says that, when buying travel insurance, customers cannot rely on their pre-pandemic knowledge and experience. It...
FCA to survey preparedness for GI pricing changes and use of credit broking permissions
The latest edition of “regulation round up” notes that FCA is shortly to ask a sample of insurers, insurance intermediaries and PCWs to complete a short survey to say how ready they are for the new general...
FCA publishes Business Plan
FCA’s 2021/22 Business Plan highlights: how FCA has to change as the environment in which it operates changes and how investment in technology and changes in culture are key to this; the need to enable customers...
FCA updates on BI
FCA’s latest update on business interruption insurance: publishes the Supreme Court Order varying the High Court declarations, and a table highlighting the most relevant declarations by policy type; publishes the...
EIOPA publishes opinion on risk mitigation techniques
EIOPA has published an opinion on the use of risk mitigation techniques by insurers and reinsurers. It notes the importance of the structures that have emerged, but also the importance of having a proper balance between...
FCA fines LBGI £90m for misleading renewals communications
The FCA has fined LBGI (Lloyds Bank General Insurance Limited, St Andrew’s Insurance Plc, Lloyds Bank Insurance Services Limited and Halifax General Insurance Services Limited) £90,688,400 for failing to ensure that...
FCA consults on updates to guidance on the review of Part VII transfers
The FCA is consulting on proposed updates to its Finalised Guidance, FG18/4: The FCA’s approach to the review of Part VII insurance business transfers, which was initially published in May 2018. The FCA is...
PRA consults on review of Solvency II
The PRA has published a consultation on its proposed changes to Solvency II reporting requirements and expectations. The proposals would result in changes to the following policy material: The onshored version of the...
PRA Policy Statement: Regulated fees and levies: rates for 2021/22
The PRA has published a policy statement which provides feedback to responses to the consultation paper ‘Regulated fees and levies: rates proposals 2021/22’. The policy statement also contains the PRA’s...
Hannah FrostFCA confirms new rules on regulation of funeral plans
The FCA has confirmed the rules funeral plan providers will have to follow when they come under regulation from 29 July 2022. The rules (currently still in draft form) mean: funeral instalment plan products will always...
FCA writes to insurance intermediaries on client money
FCA has written a Dear CEO letter to insurance intermediaries, Following its work on financial resilience and its concerns that some firms risked not having adequate financial resources, it carried out a review of how...
Ombudsman News looks at insurance and loan schemes
The latest edition of Ombudsman News features problems and complaints related to wedding insurance and business interruption insurance. The pandemic has driven a sharp increase in wedding and special events insurance...
Premium finance disclosure changes delayed
FCA has published an update to its feedback statement and new rules on general insurance pricing practices, which means that the new rules relating to premium finance disclosure will take effect on 1 January 2022...
IAIS publishes application papers
IAIS has published application papers on: resolution powers and planning; the paper looks at the objectives and concepts of resolution of insurers, entry into resolution, resolution powers and plans, resolvability...
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