PRA Dear CEO Letter on market conditions facing specialist general insurers
The Prudential Regulation Authority (PRA) has published a 'Dear CEO' letter sent to firms providing feedback from recent PRA review work on the market conditions facing specialist general insurers.
PRA, 31 May 2018
Insurance Europe publishes annual report
Insurance Europe has published its annual report for 2017-18. The report contains articles on overcoming the global insurance protection gap, why the upcoming reviews of the Solvency II rules are important to European growth, how the Commission’s proposed pan-European personal pension products can be made attractive to customers and providers, and why motor and cyber risk insurers need access to new data sources that are becoming available.
Insurance Europe, 23 May 2018
EIOPA publishes first study on the modelling of market and credit risk
A study has been published by the European Insurance and Occupational Pensions Authority (EIOPA) which looks at market and credit risk. This study shows the significant variations in asset model outputs, partially resulting from model specificities, which indicates the need for further supervisory actions.
EIOPA, 22 May 2018
EIOPA issues opinion on solvency position of insurers post-Brexit
The European Insurance and Occupational Pensions Authority (EIOPA) has issued an opinion on the solvency position of insurers in light of the withdrawal of the UK from the EU. The opinion calls upon national supervisory authorities to ensure that the risks for the solvency position of insurance and reinsurance undertakings arising from the UK becoming a third country following Brexit are properly identified, measured, managed and reported.
EIOPA, 18 May 2018
IUA says PRA’s proposed credit risk insurance reforms could raise costs
The International Underwriting Association (IUA) has responded to a Prudential Regulation Authority (PRA) consultation on proposed regulatory changes to credit risk insurance policies. The IUA said the changes could make policies more expensive and less readily available, and it warned that some London Market insurers could conclude that the product is no longer viable, which may have a subsequent impact on bank lending.
IUA, 16 May 2018
LMA publishes GDPR guidance for insurers
Lloyd’s Market Association (LMA) has produced market guidance on the application of the General Data Protection Regulation (EU) 2016/679 (GDPR) in the insurance industry. The GDPR replaced the UK Data Protection Act 1998 and other national data protection legislation across Europe on 25 May 2018. The guide provides an overview of the regulation and aims to address at market level various points which have been raised at LMA presentations on the subject.
LMA, 17 May 2018
Insurance Europe publishes obligations under the GDPR
Insurance Europe has published an overview of insurers’ main obligations under the General Data Protection Regulation.
Insurance Europe, 17 May 2018
ABI and BIBA launch guiding principles on insurance pricing
The Association of British Insurers (ABI) and the British Insurance Brokers' Association (BIBA) have launched a set of guiding principles and action points aimed at addressing some of the issues in the current market that can lead to excessive differences between new customer premiums and subsequent renewal premiums that unfairly penalise long-standing customers.
ABI and BIBA, 8 May 2018
Insurance Distribution Directive
FCA's Handbook Notice 55 confirming final IDD rules
The Financial Conduct Authority (FCA) has published Handbook Notice No. 55, which includes changes to the FCA Handbook made by the FCA board on 26 April and 24 May 2018, and which confirms the new rules to implement the Insurance Distribution Directive (Directive (EU) 2016/97).
FCA, 25 May 2018
Technical information for Solvency II reporting published in the Official Journal
Commission Implementing Regulation (EU) 2018/730 of 4 May 2018 laying down technical information for the calculation of technical provisions and basic own funds for reporting with reference dates from 31 March 2018 until 29 June 2018, in accordance with Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II), has been published in the Official Journal.
Official Journal, 18 May 2018
European Commission asks EIOPA for information on Solvency II impact on long-term activities
The European Insurance and Occupational Pensions Authority (EIOPA) has published a letter and mandate from the European Commission asking EIOPA to provide the Commission with information on the impact of Solvency II (Directive 2009/138/EC) on long-term insurance and reinsurance activities. The Commission is seeking the information as part of its review of Solvency II, which is due to be completed by the end of 2020.
European Commission, 18 May 2018
ECB supports proposals to amend ESMA Regulation, MIFID II and Solvency II
The European Central Bank (ECB) has issued an opinion on proposals to amend the European Securities and Markets Authority (ESMA) Regulation (EU) No 1095/2010 and related legal acts, and proposals to amend MiFID II (Directive 2014/65/EU) and Solvency II (Directive 2009/138/EC). The proposed new regulation and directive designed to implement these changes form part of a comprehensive package of proposals to reform the European system of financial supervision.
ECB, 17 May 2018
ECON briefing: Review of the Solvency II implementing measures
The European Parliament has published a briefing note on Solvency II focusing primarily on the solvency capital requirements (SCR). The Commission identified three themes: proportionality, removal of unintended technical consequences and the removal of unjustified constraints for financing.
European Parliament, 15 May 2018
EIOPA updates the symmetric adjustment of the equity capital charge for April 2018
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 April 2018. The updated symmetric adjustment is 1.41%.
EIOPA, 8 May 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 April 2018.
EIPOA, 8 May 2018