Lucy HadrillAndrew 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...
Category - Insurance
Emma BondFCA 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...
Emma Radmore
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...
FCA consults on regulated firm climate disclosures
FCA is consulting on enhancing climate-related disclosures by asset managers, life insurers and regulated pension providers. Following on from the introduction of disclosure rules for the most prominent listed companies...
PRA updates on Solvency II QIS
PRA is to launch its Quantitative Information Survey on Solvency II during the summer. The QIS will cover the calculation of the matching adjustment, risk margin and the transitional measure on technical provisions. ...
Taskforce reports on regulatory reform
The Taskforce on Innovation, Growth and Regulatory Reform has provided its report on reshaping regulation in the UK to the Prime Minister. The report calls for: a common law approach proportionality in application...
PRA speech: Solvency II and policyholder protection
Anna Sweeney – Executive Director, Insurance at the PRA – delivered a speech on the Solvency II review at the JP Morgan European Insurance Conference. The speech covered the work the PRA will do with HM Treasury to...
FSB overview of responses to public consultation on outsourcing and third-party relationships
The Financial Stability Board (FSB) has published an overview of the responses it received to its November 2020 discussion paper on regulatory and supervisory issues relating to outsourcing and third-party relationships...
FCA finalises value pricing and loyalty penalty measures
FCA has finalised its package of remedies that will protect home and motor insurance customers from loyalty penalties and improve competition. The package of rules will: require insurers to offer renewing customers a...
Ombudsman News looks at annual complaints data
Following the publication of the FOS complaints data for 2020/21, the latest edition of Ombudsman News looks at key trends FOS has seen in a year impacted by Covid-19. Highlights include: Banking – banks’...
FOS publishes Annual Complaints Data
FOS has published its annual complaints data for April 2020 – March 2021. Key highlights include: an overall increase in new complaints of 2% from the previous year – but a 58% increase when PPI complaints...
BoE speech: responsible openness in the insurance sector
BoE’s Anna Sweeney (Executive Director, Insurance) delivered a speech at the Association of British Insurers Prudential Regulation Webinar on how the UK will regulate insurance services post-Brexit. The speech...
UK-US Financial Regulatory Working Group issues joint statement
The Financial Regulatory Working Group has published a joint statement on its meeting on 20 May. The meeting focussed on seven key themes: international and bilateral cooperation; sustainable finance; updates on...
PRA publishes 2021/22 Business Plan
The PRA Business Plan sets out the PRA’s strategy, workplan, and budget for 2021/22. The PRA’s strategy will be delivered through the following strategic goals: Have in place robust prudential standards and...
HM Treasury consults on amendments to the insolvency arrangements for insurers
The government is consulting on amendments to the insolvency arrangements for insurers, with a view to enabling UK authorities to better manage insurer distress. The government is proposing a series of targeted...
IAIS consults on AML guidance
IAIS is consulting on changes to its “application paper” on AML and CFT in the insurance industry. The paper was originally published in 2013, and IAIS has revised it in light of various FATF updates and...
FCA consults on new Consumer Duty
The FCA has set out plans for a new Consumer Duty which will set clearer and higher expectations for firms’ standards of care towards consumers. It is hoped that the proposals will drive a shift in culture and behaviour...
Dormant Assets Bill introduced in Lords
The Dormant Assets Bill has been introduced into the House of Lords and has had its first reading. The Bill proposes expansions to the current scheme to include not only bank and building society assets, but also long...
FSCS confirms 2021/22 levy forecast
FSCS has confirmed its levy forecast for 2021/22 at £833m. This is slightly lower than the indicative levy announced in January, partly because extensions of government support are likely to mean some firms will...
Financial Services Bill – what changed?
Read our article for Compliance Monitor on the key changes from the original Financial Services Bill to the Act given Royal Assent – and some of the proposals that weren’t included.
FCA publishes new buildings insurance webpage
FCA has published a new webpage setting out its expectations of regulated firms when arranging and providing fair value buildings insurance for leasehold apartment buildings. The webpage is not an exhaustive description...
FCA publishes H2 2020 complaints data
FCA’s most recent complaints data report shows: a significant drop in complaints over the H1 2020 figure; a large decrease in insurance and pure protection complaints – with the largest being in PPI...
Commission adopts sustainable finance measures
The European Commission has adopted a package of measures to help improve the flow of money towards sustainable activities across the EU. The package includes: the EU Taxonomy Climate Delegated Act which aims to support...
Duncan ScottBusiness interruption insurance: Covid calculator
FCA has published a calculator to assist policyholders prove the presence of Covid-19 in their policy area on a given date. Policyholders can use the results to help make a claim under their business interruption...
PRA publishes year-end 2019 Solvency II disclosures
PRA has published supervisory disclosures as required by its obligations under Article 31(2) of the Solvency II Directive for year-end 2019. These disclosures include: aggregate statistical data on key aspects of the...
FCA censures firm and requires compensation payment
FCA has publicly censured a firm that sold extended warranty insurance and ordered it to pay customers compensation of nearly £400,000. It would have imposed a fine of nearly £1m had it not been for the extreme...
FCA publishes Covid-19 BI claims data
On 22 January 2021, the FCA sent a Dear CEO letter to the insurers affected by the BI insurance test case. The letter set out the FCA’s intention to gather information from all affected insurers regulatory on the...
FCA finalises cancellations and refunds guidance extension
FCA has published its finalised guidance extending its temporary guidance on how it expects firms to act when customers are making claims for cancelled events or travel arrangements. The guidance takes effect from 2...
ESAs publish report on complaints-handling
The Joint Committee of three European Supervisory Authorities (EBA, EIOPA and ESMA) (ESAs) have published a report on the application of their guidelines on complaints-handling. The report assesses how the guidelines...
UK and US continue to co-ordinate on insurance and reinsurance supervision
On 25 March 2021, UK and US participants held the first Joint Committee meeting under the UK-US Bilateral Agreement on Prudential Measures regarding Insurance and Reinsurance (Agreement). Attendees discussed progress...
EIOPA publishes IDD “general good” analysis
EIOPA has analysed Member State rules implementing the IDD and identified some practices that are not in the interests of the general good. For example, it has asked some Member States to adjust their requirements where...
FCA feeds back on Open Finance
FCA has published a policy statement following its call for input on Open Finance. The statement looks at how Open Banking is paving the way for more innovation, and notes the large number of regulatory sandbox...
Government urged to reduce barriers to UK-EU services trade
The House of Lords EU Services Sub-Committee has published a report which examines the UK-EU Trade and Cooperation Agreement (TCA) and the future UK-EU relationship on trade in services. In terms of financial services...
FCA updates on non-damage BI settlements and deductions
FCA has updated its guidance aimed at insurers who have made deductions from business interruption insurance claim payouts for some types of Government support that policyholders benefited from. Back in August 2020, FCA...
EIOPA publishes IDD FAQs
EIOPA has updated its FAQs on the IDD. The 8 new questions cover: the appropriateness assessment product oversight and governance; adaptation of existing product; protect testing and review for existing products;...
FCA updates on timetable for insurance pricing rules
FCA has updated firms on its plans for the introduction of new rules following its consultation on general insurance pricing practices. It had originally proposed to give firms 4 months from the time it finalised its...
Regulation of the insurance sector set to change
In a speech given at the Association of British Insurers, Sam Woods, CEO of the PRA, said that the regulation of the UK insurance sector is set to change. Mr Woods stated that rules for insurers would be set out in the...
FCA updates BI list
FCA has updated its information pages on business interruption insurance by providing a list of insurers and policies, submitted by insurers, of the non-damage business interruption insurance policies that are, in...
FCA publishes “presence of Covid” guidance
FCA has finalised and published its guidance on proving the presence of Covid-19. The guidance builds on the High Court and Supreme Court judgments in the FCA’s business interruption insurance test case, and sets...
FCA publishes funeral plan consultation paper
The FCA has published a consultation paper on its proposed approach to the regulation of pre-paid funeral plans. Such plans are due to become fully subject to FCA regulation from 29 July 2022. The majority of the...
EU and Japan exchange letters on co-operation
The European Insurance and Occupational Pensions Authority (EIOPA) and Japan’s Financial Services Agency (FSA) have agreed to co-operate on insurance regulation and supervision. The exchange of letters aims to...
CMA publishes PPI breach letter
CMA has written to Cardif Pinnacle about two breaches of the PPI order. The breaches mean that nearly 5,000 customers have been receiving inaccurate Annual Reviews since 2012, an 4 customers received annual reviews that...
PRA reports on positive iNED meetings
PRA has written a letter to iNEDs, who participated in its pilot programme of virtual meetings. The meetings discussed current challenges, and PRA was pleased that, in principle: iNEDs thought firms had reacted well to...
BI insurance declarations submitted to Supreme Court
FCA and the other parties to the test case have made submissions to the Supreme Court on the form of declarations. FCA has published a draft of the declarations, showing what is agreed and what is still in dispute...
EIOPA shares views on improving BI cover
EIOPA has published a staff paper on how to improve the insurability of business interruption in the light of pandemics. It is urging insurers to promote prevention measures which will improve society’s capacity...
FCA updates on cancellations and refunds guidance
FCA has updated its webpages and finalised guidance on how it expects credit and debit card and insurance providers to deal with requests for refunds following cancellation of trips, events and holidays as a result of...
PRA speaks on insurer capital
Anna Sweeney has spoken on the Solvency II review and how much capital is enough. She stressed that PRA wants to get its reforms right, and to see them within the context of the entire relevant package of measures. ...
ABI speech on the insurance industry post Brexit and lessons learned from the pandemic
James Dalton, Director of General Insurance Policy at the ABI, gave a speech to the Westminster Forum on the future of the insurance industry post-Brexit and lessons learned from the COVID-19 pandemic. Starting off on a...
Angie BamboulisESAs agree PRIIPs KID changes
The ESAs have suggested to the European Commission a package of changes to the PRIIPs KID. The main proposals for change are: new methodologies to calculate appropriate performance scenarios and a revised presentation...
FCA updates on BI issues
FCA has updated its information page on business interruption insurance, and has created new pages containing a policy checker tool and FAQs for policyholders.
BI insurance claims – what happens next?
Following our report on the Supreme Court’s findings in the FCA’s test case, we have now written an article on the key elements of the judgment.
Treasury makes funeral plan RAO changes
Treasury has made changes to the RAO and related secondary legislation to remove the exclusion that previously meant no provider of pre-paid funeral plans was in fact conducting any regulated activity in relation to...
FCA updates on PEMC signposting
FCA has updated its webpage on how insurance firms should be helping consumers with serious pre-existing medical conditions to get travel insurance. It now highlights the newly publishes BIBA travel insurance...
FCA updates on BI judgment effects
FCA has updated its website following the Supreme Court’s judgment in the business interruption insurance test case. It has: published a Dear CEO letter on its expectations on insurers. The key message is that...
Supreme Court backs FCA on BI judgment
The 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...
FCA publishes whistleblowing VREQ
FCA has published the outcome of an application by Tokio Marine Kiln Insurance Limited and Tokio Marine Kiln Syndicates Limited to put in place a Voluntary Requirement in respect of whistleblowing policies and...
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