This month's roundup of developments affecting the insurance industry sees the publication of the directive postponing the application date of the Insurance Distribution Directive, the Council of the EU approving the bilateral agreement between the EU and the US on insurance and reinsurance measures, and Insurance Europe developing a template to help insurance companies notify GDPR breaches.
- IFSB consults on exposure drafts of standards and principles for Islamic insurance, capital markets and banking sectors
- Council of EU adopts decision approving EU-US bilateral agreement on insurance and reinsurance prudential measures
- Insurance Europe GDPR data breach notification template
- IAIS speech on its role in times of turbulence
- EIOPA letter to European Commission on supervisory reporting requirements consultation
- IAIS publishes update on ComFrame
- Insurance Europe updated position paper on consequences of Brexit on existing insurance contracts
- BIBA launches arrangement to help members work with EU clients post Brexit
- FCA letter on insurers' customer communications on Brexit
Insurance Distribution Directive
- Directive delaying IDD published
- EIOPA consults on revisions to Solvency II ITS and guidelines on reporting and disclosure
- Keynote speech on Solvency II
- Insurance Europe publishes insight briefing on 2018 Solvency II review EIOPA publishes second paper on Solvency II tools with macroprudential impact
IFSB consults on exposure drafts of standards and principles for Islamic insurance, capital markets and banking sectors
Three exposure drafts of standards and principles for Islamic insurance, capital markets and banking sectors have been published for consultation by the Islamic Financial Services Board (IFSB). The first relates to key elements in the supervisory review process of takāful and retakāful undertakings (Islamic insurance segment), the second on the core principles for Islamic finance regulation (Islamic capital market segment), and lastly on revised standard on disclosures to promote transparency and market discipline for institutions offering Islamic financial services (IIFS) (banking segment).
IFSB, 28 March 2018
Council of EU adopts decision approving EU-US bilateral agreement on insurance and reinsurance prudential measures
Council of the EU published a press release announcing that it has adopted a decision set out in document 8054/17 (dated 23 May 2017) approving the bilateral agreement between the EU and the US on insurance and reinsurance measures. The agreement is intended to provide legal certainty for EU and US insurers and reinsurers in the application of regulatory frameworks and to enable improved protection for policyholders through cooperation between supervisors and the exchange of information.
Council of EU, 20 March 2018
Insurance Europe GDPR data breach notification template
Insurance Europe has developed a template to help companies notify their competent supervisory authority about personal data breaches under the General Data Protection Regulation (GDPR).
Insurance Europe, 19 March 2018
IAIS speech on its role in times of turbulence
The International Association of Insurance Supervisors (IAIS) has published a speech by Jonathan Dixon, IAIS Secretary General, on its role in times of turbulence. Amongst other things, the IAIS will present its next strategic plan and financial outlook (SPFO) for approval at its 2018 AGM. This five-year plan will begin in 2020. It will consult on its initial thoughts later in 2018.
IAIS, 7 March 2018
EIOPA letter to European Commission on supervisory reporting requirements consultation
A letter from Gabriel Bernardino, EIOPA Chair, to Olivier Guersent, European Commission Director-General, DG FISMA, relating to the European Commission's consultation paper on supervisory reporting has been published by EIOPA
EIOPA, 6 March 2018
IAIS publishes update on ComFrame
The IAIS has published an updated webpage on ComFrame. This is a set of international supervisory requirements focusing on the effective group-wide supervision of internationally active insurance groups (IAIGs).The update explains that a key part A of the ComFrame project is the development of a risk-based, global insurance capital standard (ICS) for Internationally Active Insurance Groups and that a second version will be adopted together with the rest of ComFrame at the end of 2019.
The International Association of Insurance Supervisors, 2 March 2018
Insurance Europe updated position paper on consequences of Brexit on existing insurance contracts
Insurance Europe published an updated version of its position paper on the consequences of Brexit on existing insurance contracts. Insurance Europe calls on the UK and the EU to reach an agreement on the grandfathering of existing insurance and reinsurance contracts, to give legal certainty and sufficient time to reorganise businesses, set up branches and subsidiaries and transfer policies. It is critical that grandfathering provisions apply to reinsurance contracts, to ensure continuation of service until their termination.
Insurance Europe, 5 March 2018
BIBA launches arrangement to help members work with EU clients post Brexit
The British Incurrence Brokers' Association (BIBA) has published a press release announcing that it has reached an agreement with the Worldwide Broker Network to facilitate the introduction of BIBA member firms to Worldwide Broker Network member firms within the EU.
BIBA, 21 March 2018
FCA letter on insurers' customer communications on Brexit
The FCA has published a letter from Andrew Bailey, FCA Chief Executive, to Huw Evans, ABI Director General, on the communications that insurers will need to send to customers on the effects of Brexit. Mr Bailey's letter is in response to a letter from Mr Evans asking for his view on the appropriate approach to take when communicating with customers.
FCA, 14 March 2018
Insurance Distribution Directive
Directive delaying IDD published
Directive (EU) 2018/411 amending the Insurance Distribution Directive ((EU) 2016/97) (IDD) with regards the date of application of member states' transposition measures has been published in the Official Journal of the European Union. The directive postpones the application date with regards to new rules on insurance distribution to 1 October 2018. The directive also extends to 1 July 2018 the deadline given to member states to transpose the new rules into national laws and regulations.
Official Journal, 19 March 2018
EIOPA consults on revisions to Solvency II ITS and guidelines on reporting and disclosure
A consultation paper has been published by EIOPA on revisions to implementing technical standards (ITS) and guidelines on reporting and disclosure relating to the Solvency II Directive.
EIOPA, 28 March 2018
Keynote speech on Solvency II
The European Commission has published a speech made by Vice President Valdis Dombrovskis, at a public hearing on Solvency II. The hearing focuses on the implementing rules (or delegated act), which deals with stress-based standard capital requirements. This is due to be reviewed by the end of this year, and these discussions will feed into this exercise.
European Commission, 27 March 2018
Insurance Europe publishes insight briefing on 2018 Solvency II review
Insurance Europe has published an insight briefing on the upcoming Solvency II reviews, ahead of a European Commission hearing on changes to the regulatory framework that will take place today.
Insurance Europe, 27 March 2018
EIOPA publishes second paper on Solvency II tools with macroprudential impact
The European Insurance and Occupational Pensions Authority (EIOPA) has published a second paper on Solvency II tools with macroprudential impact. The paper aims to identify, classify and provide a preliminary assessment of the tools or measures currently within the Solvency II Directive framework that could mitigate any of the systemic risk sources identified in the first paper.
EIOPA, 21 March 2018