Emma RadmoreThe Supreme Court has released its judgment on the business interruption insurance test case. Commenting, on the judgment, FCA noted that the Court has substantially allowed FCA’s appeal on behalf of policyholders...
Category - Insurance
FCA publishes FAQ on insurance pricing plans
FCA has published a set of FAQs on its draft rules to remedy its concerns on general insurance pricing practices. It hopes the document will help firms understand the intention behind the proposals, but stresses that...
UK Government announces expansion of the Dormant Assets Scheme
The UK Government has announced the expansion of the Dormant Assets Scheme, which is a major boost as the UK recovers from the coronavirus pandemic. £800 million is set to be made available to communities across the UK...
Angie BamboulisFCA publishes Covid resilience survey results
FCA has published the results of the survey it sent to 23,000 forms on the real-time effect the pandemic is having on their resilience. Among its conclusions are: failures of firms due to the economic downturn are...
FCA reminds firms to be prepared for Brexit
With the end of the Brexit transition period in sight, the FCA has issued a press release reminding firms to be prepared. The FCA expects firms to have assessed the impact of the changes that will take effect, on both...
FCA updates on complaints data
FCA has published its latest firm-specific and aggregate complaints data from firms for H1 2020. It specifically notes: the lowest levels of recorded complaints since H2 2016 – firms received 2.96m; the largest...
No BI judgment this year
FCA has confirmed the Supreme Court will not be handing down its judgment before January 2021.
FCA consults on proving presence of Covid
FCA is consulting on guidance to help policyholders, insurers and intermediaries to judge how to prove the presence of Covid-19 in a particular area. FCA wants to be able to issue the final guidance as soon as the...
EIOPA: Peer Review on the collaboration of the insurance NSAs
EIOPA has published the findings of a peer review on the supervisory practices related to the decision concerning the collaboration amongst supervisory authorities in relation to insurance cross-border activities, data...
BoE sets out stress test plans for insurance industry
Speaking at the Insurance Risk and Capital EMEA 2020 virtual conference, Charlotte Gerken, Executive Director – Insurance Supervision, addressed the industry’s reaction to the Covid-19 pandemic, the Solvency II...
Lucy HadrillPRA notes FCA “long-term absence” consultation
PRA has drawn the attention of firms to a joint chapter in FCA’s latest quarterly consultation on clarifying regulatory expectations for temporary long-term absences. The regulators plan to clarify what they...
Court of Appeal overturns Rothesay Part VII decision
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...
Jonathan DrakeFCA updates on general insurance consultation
FCA is consulting on rules and guidance to implement a package of remedies to address the harms identified in its general insurance pricing practices market study. As part of the consultation process, FCA recently...
HM Treasury extends consultation deadlines
Financial Services Future Regulatory Framework Review Phase II Consultation – further to the consultation document published on 19 October 2020, the consultation has been extended by one month to 19 February 2021...
EU statement on EU-Japan Joint Financial Regulatory Forum
The European Commission has published a statement on the second meeting of the EU-Japan Joint Financial Regulatory Forum which took place on 20 November. Topics of discussion at the meeting included the impact of Covid...
FCA outlines its supervision Strategy for Lloyd’s & London Market Insurers
The FCA has published a ‘Dear CEO‘ letter addressed to Lloyd’s and London Market Insurers, providing an overview of the areas of focus of its supervision strategy. In particular, the letter sets out...
FCA publishes BI appeal transcript
FCA has published the transcript from the last day of the appeal hearing on the business interruption insurance test case.
What next in BI appeal?
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...
MFN strikes again
The CMA has published an infringement decision against Compare The Market for imposing wide most favoured nation clauses on home insurance providers using its price comparison platform. The fine, in the sum of £17.9...
Caroline StevensonABI calls for advice charging overhaul
ABI says that nearly 75% of consumers say they will not pay for financial advice. It says the regulatory environment needs to adapt so that customers can get the advice they want and that is fit for purpose. It carried...
FCA publishes BI appeal day 1 transcript
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.
FSB publishes 2020 Resolution Report
The Financial Stability Board (FSB) has published its 2020 Resolution Report which highlights the need for resolution preparedness. It also looks at lessons learnt from the Covid-19 pandemic, which stressed the...
FCA updates on Supreme Court BI appeal
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 writes supervision letter to PCWs
FCA has written a portfolio supervision letter to CEOs of price comparison websites. The letter notes the key priority that customers buying products through PCWs should buy products consistent with their demands and...
FCA updates on BI insurance test case
The FCA has updated its webpage on business interruption insurance with details of the BI test case Supreme Court appeal. The Supreme Court will live-stream the appeal on: Monday 16 November: 11am-4pm; and Tuesday 17 –...
FOS publishes Q2 information
FOS has published complaints figures for July – September 2020 (Q2 2020). It: received 69,000 complaints in total received over 5,900 Covid-related complaints referred over 9,000 complaints to an Ombudsman upheld...
FCA updates on EEA regulator Brexit guidance
FCA has put together an information page sharing links to the websites of EEA regulators on which they have published guidance about the effects of Brexit on UK firms operating in their jurisdictions. Some of the pages...
Covid-19 measures weekly summary
It’s been a while since we needed to do a digest of these. In the light of the new English lockdown and the expiry of various measures, the last week has seen: FCA consultation on updated guidance for consumer...
FCA writes to CEOs of LLMI firms
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 confirms BI appeal date
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...
FCA reminds of insurance product value importance
FCA has reminded insurance firms that they need to complete their reviews of the value of their products in the light of the pandemic. The reviews follow FCA’s guidance published in June, highlighting that there...
FCA confirms updated guidance for insurance and premium finance
FCA has confirmed its finalised guidance for insurance and premium finance firms, that applies from 31 October. The guidance contains minor changes from the consultation version, and supersedes the August guidance...
Regulators update insurers and others on Brexit expectations
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 publishes BI High Court declarations
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 launches training programme on insurance supervision
The targeted training programme will be delivered to 17 national competent authorities and aims to reinforce high-quality and effective supervision, the protection of policyholders and beneficiaries, and financial...
HMT consults on financial services regulatory framework post-Brexit
HM Treasury has published a consultation paper in relation to Phase II of its Financial Services Future Regulatory Framework Review. HMT is seeking views on proposals for the financial services regulatory framework post...
ESRB publishes Recommendation on identifying legal entities
The European Systemic Risk Board (ESRB)’s Recommendation A proposes that: EU legislation incorporates a common EU legal framework governing the identification of legal entities established in the EU that are...
Lords responds to HMT on equivalence
Baroness Donaghy, chair of the House of Lords EU Services Sub-Committee, has responded to HMT’s letter of 21 September which set out the Government’s responses to previous queries of the Sub-Committee on UK...
Customers in financial difficulty and coronavirus: Additional guidance for firms
The FCA has set out proposals on how firms should continue to seek to help customers who hold insurance and premium finance products and may be struggling financially due to Covid-19 beyond 31 October 2020. The proposed...
Lloyds report: Building simpler Insurance products
Lloyds has published a report today – Building simpler insurance products to better protect customers which sets out a number of ways the global insurance industry can remove complexity to provide enhanced...
EIOPA calls on insurance industry to be ready for end of transition
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...
HMT writes to House of Lords on equivalence
The Economic Secretary to HM Treasury, John Glen MP, has responded to the House of Lords EU Services Sub-Committee’s queries on UK-EU regulatory cooperation for UK financial services post-Brexit. In its letter to...
EIOPA sets out approach on POG
The European Insurance and Occupational Pensions Authority (EIOPA) has published a paper outlining its approach to the supervision of product oversight and governance (POG) requirements based on the Insurance...
FCA updates on pre-existing conditions directory
FCA has noted the new travel insurance directory launched by MaPS for people with serious pre-existing medical conditions. The directory meets FCA’s criteria for a “Medical Cover Firm Directory” and...
Leapfrog certificates granted in BI test case
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...
Finalised Guidance: Cancellations and refunds
Following our report on the draft guidance published on 31 July, the FCA has published its finalised guidance on its expectations for insurance and card providers helping consumers claim money back. The guidance which...
FCA files skeleton arguments for leapfrog BI hearing
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 writes to investment and insurance CEOs on client assets and Covid-19
FCA has written 2 Dear CEO letters to firms that hold client money or custody assets, whether in the context of investment or insurance business, to remind them of their obligations under CASS. The letters stress that...
FCA reports on regulatory perimeter
FCA has published its second report on the regulatory perimeter. The report looks at: consumer confusion about the perimeter – and when FCA has the power to act. It also notes that customers may be confused as to...
FCA updates on BI appeal and lodges leapfrog application
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 publishes insurance pricing report and consults on fundamental change
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...
BI consequentials hearing set for 2 October
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 writes to CEOs on BI judgment
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...
BI test case: Court largely supports policyholders
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...
BI insurance judgment due 15 September
FCA has announced that the court is due to hand down its judgment on the business interruption insurance test case at 10:30am on 15 September.
FCA updates on General Insurance value measures
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...
PRA finalises minor rule changes
PRA has published its policy statement on proposals in one of its Occasional Consultations. The changes confirmed will cover: minor updates on liquidity reporting; LIBOR updates for non-Solvency II insurers; other minor...
FCA writes to insurance intermediaries on supervision
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...
FOS focuses on Covid-19 complaints
The latest edition of Ombudsman News focuses on complaints arising from Covid-19 and its impact on consumers and SMEs. FOS notes that some of the issues are new, but others are common issues made worse by the pandemic...
FSB publishes insurance resolution methodology
FSB has published its key essential criteria which will guide assessment of how a jurisdiction’s insurance resolution framework has complied with FSB’s “Key Attributes of Effective Resolution Regimes...
Court approves insurance transfer
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...
FCA publishes final BI case transcripts
FCA has published the final transcripts from each day of the Business Interruption Insurance test case.
Rothesay/Prudential transfer to go to appeal
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...
FCA finalises guidance for insurance and premium finance firms
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...
High Court gives reasons for Part VII approval
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...
FCA adds more BI documents
FCA has now published the transcript of day 8 of its Business Interruption insurance test case and a number of supplementary notes.
FCA makes statement on non-damage BI settlements
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...
FCA updates on BI test case
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 consults on consumer refund guidance
FCA has published a guidance consultation on how firms should be helping customers with rights and routes to refunds. The guidance builds on FCA’s previous statements on consumers’ rights when their trips...
Covid-19: FCA defers commencement date for rules on access to travel insurance
On 27 July, the FCA published the Covid-19: Deferral of Commencement (Access to Insurance) Instrument 2020, which came into force the same day. The instrument amends the Insurance: Conduct of Business Sourcebook...
Amelia GreenIAIS consults on the impact of Covid-19
The International Association of Insurance Supervisors (“IAIS“) is seeking feedback from stakeholders on the implications of Covid-19 on the insurance sector, supervisors and the future work of the IAIS. The...
FCA proposes to extend its updated guidance for insurance and premium finance firms
On 24 July, the Financial Conduct Authority (“FCA“) announced its proposal to extend a series of temporary measures to help customers who hold insurance and premium finance products and who may be in...
FCA publishes Day 2 BI test case transcript
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 updates on Part VII and Brexit
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...
Day 1 BI test case transcript published
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 updates BI papers ahead of trial
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...
Court rules “No DSS” unlawful under the Equality Act
York County Court has ruled that so called “no DSS” policies – which put in place a ban on renting property to people who are on housing benefit – are discriminatory and unlawful under the...
Andrew Graham-SmithRegulation round up highlights refunds, SMRC delays and next steps in Covid-19 consumer protection
FCA’s latest Regulation Round up covers the usual update of FCA’s recent publications, and reminds them of some earlier, still relevant, statements, not least: the confirmed new guidance for motor finance...
FCA publishes defendant BI case skeleton arguments
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...
Commission updates Brexit preparedness notices
The Commission has added more notices to stakeholders on preparing for Brexit and the consequences of loss of the passport. Among the notices now updated are those for: asset management consumer protection credit rating...
FCA updates on BI test case
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...
International bodies concerned about LIBOR transition
A report published today by the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (BCBS) has raised concerns about the apparent lack of commitment of financial markets to move away from...
Jonny WilliamsEIOPA clarifies product expectations during Covid-19
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...
CMA orders insurance provider to fix PPI breaches
The Competition Markets Authority (“CMA“) has taken action against Cardif Pinnacle, and has written to Nationwide and Lloyds, after they failed to provide accurate annual Payment Protection Insurance...
FCA reformats Brexit advice
FCA has revamped its information page on Brexit. The page gives advice to firms on what they should be considering in preparation for the end of the transition period. Much of the information is not news, and includes a...
PRA makes fees rules
Following on from FCA’s confirmation of its fees and levies for 2020/21, PRA has now made its policy statement. It made no changes to its proposals, and has now published the necessary rule changes which take...
FCA serves BI insurance Reply
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...
Up next from FCA
Over the rest of 2020, FCA plans the following: consultations on mortgage borrowing and mortgage prisoners (now overdue), debt advice levy rates and exist fees in investment platforms (Summer 2020) and on financial...
Employers’ liability claims for COVID-19 in the workplace
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.
European Commission consults on Solvency 2 review
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...
Treasury agrees future UK/Switzerland relationship
Rishi Sunak has confirmed that he and his Swiss counterpart have signed an agreement to develop a deep agreement on financial services once the Treasury acquires its new “equivalence” powers after the end of...
PRA consults on Solvency 2 technical information publication
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 updates on 2nd BI case management conference
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...
Barnier speaks on Brexit
Michel Barnier has spoken at the Eurofi General Assembly on UK/EU relations. He noted the desire to give the EU/UK negotiations “every chance of succeeding”. He noted he had rescheduled many other meetings...
FCA updates on Covid, cancellations and insurance
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...
FCA updates on Covid-19 delayed activities
FCA has confirmed some further delays to projects and extensions to proposed deadlines, in light of Covid-19. Various deadlines now postponed until later in 2020-or to 2021 include: The Directory of Certified Persons...
EIOPA updates on stress testing
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 publishes defences in BI test case
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...
Chancellor updates on FS laws and Brexit
Rishi Sunak has made a written statement about the UK’s approach to implementing key financial services reforms before the end of 2020. The statement notes the UK’s policy intention, and the manner in which...
EIOPA publishes findings of the Regular Supervisory Report
On 18 June, the European Insurance and Occupational Pensions Authority (“EIOPA“) published the findings of its peer review of the Regular Supervisory Report (“RSR“). The review examined how and...
PRA writes to insurers on 2019 stress test
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...
FCA updates on BI case management conference
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...
FCA finalises BI insurance guidance to firms
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...