A roundup of developments affecting the insurance industry from the past month
Including the FCA publishing feedback on access to insurance for people with pre-existing medical conditions, the International Underwriting Association publishing a Brexit continuity clause and EIOPA submitting draft Regulatory Technical Standards for professional indemnity insurance.
IAIS consults on governance, cybersecurity and revised ICPs
The International Association of Insurance Supervisors (IAIS) is consulting on application papers on the composition and the role of the board and on the supervision of insurer cyber security. Feedback is sought by 13 August 2018. It has also launched a consultation on revised ICPs 6 (changes in control and portfolio transfers) and 20 (public disclosure), which closes on 28 August 2018.
IAIS, 29 June 2018
PRA sends a Dear CEO Letter to insurers, banks and PRA-regulated investment firms on crypto-asset exposures
The PRA has sent a letter to the CEOs of insurers, banks and PRA-regulated investment firms regarding cypto-assets. The letter sets out some of the risk strategy and risk management systems that the PRA considers appropriate to crypto-assets.
PRA, 28 June 2018
EIOPA seeks views on InsurTech best practice
The European Insurance and Occupational Pensions Authority (EIOPA) is seeking views on InsurTech through an InsurTech Insight Survey. The survey focuses on licencing requirements, barriers to InsurTech and InsurTech facilitation and is open until 11 August 2018.
EIPOA, 27 June 2018
English and Scottish Law Commissions published draft legislation to update the law on insurable interest
The English and Scottish Law Commissions have published an updated draft bill and accompanying notes which proposes updates to the law of insurable interest for life-related insurance. The draft bill broadens the concept of insurable interest including by introducing an automatic insurable interest for cohabitants, children and grandchildren as well as introducing a broad test as to what it means to have an interest in another person's life. Comments on the updated draft bill can be made until Friday 14 September 2018.
English and Scottish Law Commissions, 20 June 2018
FCA call for input on access to insurance
The Financial Conduct Authority (FCA) has published feedback on its call for input (CfI) on access to insurance, challenging the industry to improve access to insurance for people with pre-existing medical conditions. The findings of the CfI will be used to inform the FCA's wider work on insurance pricing practices, as announced in the business plan for 2018/19.
FCA, 25 June 2018
ECB releases Q1 2018 statistics on euro area insurance corporations
The European Central Bank (ECB) has released statistics on euro area insurance corporations for the first quarter of 2018. They show that total assets of euro area insurance corporations amounted to €7,949bn, €53bn higher than in the fourth quarter of 2017. Total insurance technical reserves amounted to €6,009bn, €32bn higher than in the fourth quarter of 2017.
ECB, 12 June 2018
Insurance Distribution Directive
EIOPA submits draft IDD RTS for professional indemnity insurance and for financial capacity of intermediaries
The European Insurance and Occupational Pensions Authority (EIOPA) has submitted the draft regulatory technical standards (RTS) to the European Commission adapting the base euro amounts for professional indemnity insurance and financial capacity of insurance intermediaries.
EIOPA, 28 June 2018
EIOPA on insurers’ duty to inform customers about the impact of the withdrawal of the UK from the EU
The European Insurance and Occupational Pensions Authority (EIOPA) has published an opinion addressed to national supervisory authorities about the duty of insurance undertakings and insurance intermediaries to inform customers about the possible impact of the withdrawal of the UK from the EU.
EIOPA, 28 June 2018
Brexit contract continuity clause published to manage post-Brexit insurance contracts
The International Underwriting Association (IUA) has published a Brexit ‘contract continuity clause’ to help companies manage insurance contracts as the UK leaves the EU. The clause, which aims to clarify how firms will continue to pay claims despite any business disruption caused by a situation where adequate transitional arrangements are not agreed, has been published alongside an accompanying commentary outlining circumstances in which it may be used.
IUA, 25 June 2018
Survey shows Solvency II brings benefits but deters long-term business
Insurance Europe (IE) has published a press release in which it states that a survey of insurers from across Europe has shown that over three quarters of the respondents have seen a positive effect from Solvency II on their risk management and governance practices, and on their management of assets and liabilities.
EU, 28 June 2018
EIOPA releases Solvency II insurance data for Q4. 2017
The European Insurance and Occupational Pensions Authority (EIOPA) has published a new set of statistical information on the European insurance sector based on Solvency II regulatory reporting for the fourth quarter of 2017. The data now includes new exposure statistics on the sector, which will become a regular part of the releases.
EIOPA, 21 June 2018
Gabriel Bernardino on Solvency II implementation, and the challenges ahead
The European Insurance and Occupational Pensions Authority (EIOPA) has published an interview given by its chair, Gabriel Bernardino, to Swedish financial news outlets Pensioner & Förmåner and Dagens Industri. Mr Bernardino said the implementation of Solvency II in 2016 went smoothly and was a success, and that he was happy with how supervisory convergence with Solvency II is developing in collaboration with the national supervisors.
EU, 8 June 2018
EIOPA updates Solvency II relevant risk-free interest rate term structures
The European Insurance and Occupational Pensions Authority (EIOPA) has published technical information on the relevant risk-free interest rate term structures (RFR) with reference to the end of May 2018.
EIPOA, 8 June 2018
PRA publishes letter providing an update on its risk margin work
The PRA published a letter from Sam Woods, the CEO of the PRA, to the Chairman of the House of Commons Treasury Select Committee, Nicky Morgan, to provide an update on the PRA's risk margin work under Solvency II.
PRA, 6 June 2018 (letter dated 4 June 2018)
ECON publishes draft resolution on IFRS 17 Insurance Contracts
The European Parliament's Committee on Economic and Monetary Affairs (ECON) has published a draft motion for resolution on International Financial Reporting Standards: IFRS 17 Insurance Contracts. The resolution raises some concerns regarding the new standard and calls for further analysis by the European Commission and the European Financial Reporting Advisory Group (EFRAG).
ECON, 1 June 2018