A roundup of developments affecting the insurance industry from the past month including the Commissions extending the deadline for responding to the consultation on the Insurable Interest Bill, EIOPA's report on the effect of cyber risks and the PRA publishing its regulatory digest for July 2018.
IAIS consults on the Increasing Use of Digital Technology in Insurance
The International Association of Insurance Supervisors (IAIS) has published a draft Issues Paper for public consultation, 'Increasing Use of Digital Technology in Insurance and its Potential Impact on Consumer Outcomes'.
IAIS, 1 August 2018
IAIS publishes responses to consultation on integrating ComFrame materials into ICPs 8, 15 and 16
The International Association of Insurance Supervisors (IAIS) has published responses (together with a summary of main comments) to its consultation on integrating ComFrame materials into Insurance Core Principles (ICPs) 8, 15 and 16.
IAIS, 1 August 2018
EIOPA—cyber risk presents a core challenge for the European insurance industry
The European Insurance and Occupational Pensions Authority (EIOPA) has published a report which finds that cyber risk is a growing concern for institutions, individuals, and financial markets. The report, 'Understanding Cyber Insurance - A Structured Dialogue with Insurance Companies' is based on a survey carried out by eight insurers and five reinsurers across the UK, Switzerland, France, Italy and Germany.
EIOPA, 2 August 2018
European Commission request technical advice on sustainable finance from EIOPA and ESMA
The European Insurance and Occupational Pensions Authority (EIOPA) has published a formal request (dated 24 July 2018) from the Director-General for Financial Stability, Financial Services and Capital Markets Union at the European Commission, Olivier Guersent, calling for technical advice from EIOPA and ESMA on the Commission's package of measures on sustainable finance which were adopted by the Commission on 24 May 2018.
EIOPA, 2 August 2018
ABI report six- year high in cost of emergency medical treatment for British people travelling abroad
The Association of British Insurers (ABI) has reported that the cost of emergency medical treatment for British people travelling abroad is at £201m, a six-year high. The ABI analysis revealed that travel insurers have helped over 3,000 British travellers a week needing emergency treatment abroad. Nevertheless, one in five British people travel abroad without travel insurance.
ABI, 10 August 2018
Lloyd's managing agents support ILS as permanent fixture in UK market
The Lloyd's Market Association (LMA) has published a press release saying that eighty per cent of Lloyd's managing agents who responded to its survey have said they would 'like to see Insurance Linked Securities (ILS) products become a permanent fixture in the re/insurance market'.
LMA, 15 August 2018
FCA regulation round-up August 2018
The FCA has published its monthly regulation round-up. This month the update includes accessible communications for consumers, preparing firms for Brexit and new functionality in the FCA's Connect system.
FCA, 16 August 2018
Consultation deadline extended for Insurable Interest Bill
The English and Scottish Law Commissions, who are conducting a consultation on the Insurable Interest Bill have extended the deadline for responding to the consultation to 31 October 2018.
Scottish Law Commission, 22 August 2018
ABI publish results of annual survey of detected insurance fraud
The Association of British Insurers (ABI) published the results of its annual survey of UK insurance fraud. The results revealed that one insurance fraud is detected every minute. However, the number of dishonest insurance claims was down 8%. The decline in the number of dishonest insurance claims has been regarded as being as a result of detecting and deterring fraud.
ABI, 22 August 2018
IE welcomes Commission’s proposal for a sustainability taxonomy
Insurance Europe (IE) has responded to the European Commission’s consultation on a proposed regulation to establish a framework to facilitate sustainable investment. IE said that sustainability has different meanings in different markets so achieving a shared understanding about the subject should be a priority for the Commission. The Commission’s proposal for a taxonomy is therefore ‘a very positive step’.
IE, 28 August 2018
Insurance Europe responds to FSB consultation on regulatory barriers to infrastructure finance
Insurance Europe has published a position paper in response to the Financial Stability Board (FSB)'s consultation on the effects of financial regulatory reforms on infrastructure finance. Key issues include capital requirements in Solvency II, the barriers prudential regulation can pose, consistent accounting treatment for both assets and liabilities, and the limited supply of suitable infrastructure assets.
IE, 30 August 2018
Insurance Distribution Directive
CMA proposes limited review of the Payment Protection Insurance Market Investigation Order 2011
The Competition and Markets Authority (CMA) has proposed to carry out a limited review of the Payment Protection Insurance Market Investigation Order 2011 (the Order) to reflect the implementation of the EU Insurance Distribution Directive.
CMA, 2 August 2018
UK Government's framework for financial services for the UK-EU partnership
The Department for Exiting the EU has published a presentation, which is part of a series produced by the UK negotiating team, explaining the government's considerations for the UK-EU partnership in relation to financial services.
Department for Exiting the European Union, 20 August 2018
UK government publishes technical notice for banking, insurance and financial services
A technical notice for the banking, insurance and financial services sectors has been published by the UK government which sets out guidance in the event that the UK leaves the EU without agreement.
Government Guidance, 23 August 2018
PRA publishes regulatory digest for July 2018
The PRA has published its regulatory digest for July 2018 which provides summaries of various banking and insurance updates, including the PRA's final policy relating to improvements to the implementation of Solvency II.
PRA, 1 August 2018
EIOPA issues monthly update of the symmetric adjustment of the equity capital charge for Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) has published the technical information on the symmetric adjustment of the equity capital charge for Solvency II with reference to the end of July 2018.
EIOPA, 6 August 2018
EIOPA releases July 2018 RFR technical information for Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) has published the July edition of technical information on the Solvency II relevant risk-free interest rate term structures (RFR) used for the calculation of the provisions for (re)insurance obligations.
EIOPA, 6 August 2018
EIOPA receives response from ESMA regarding the queries on the AIFMD
The European Securities and Markets Authority (ESMA) responded to questions posed by the European Insurance and Occupational Pensions Authority (EIOPA) under section 11.5.2 of the second set of EIOPA's advice to the European Commission on the Solvency II Delegated Regulation regarding the interpretation and application of the Alternative Investment Fund Managers Directive (AIFMD).
ESMA, 7 August 2018
New Q&As on Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) has published new Q&As on Solvency II.
EIOPA, 10 August 2018
EIOPA publishes updated technical RFR documentation under Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) has published an updated examination for calculating the volatility adjustment to risk-free interest rates (RFR) for the Danish krone and Denmark. The analysis sheds light on the use of an option-adjusted Nykredit index and the Danish covered bond market.
EIOPA, 15 August 2018
PRA publishes Solvency II supervisory disclosures
The Prudential Regulation Authority (PRA) has published supervisory disclosures under Article 31(2) of the Solvency II Directive 2009/138/EC (Solvency II) for year-end 2017. The disclosures include guidance on exercising the options provided for in Solvency II and documents expanding upon the PRA's supervisory approach.
PRA, 21 August 2018