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Category Archives: Market developments

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Posted in Market developments, USA

US: Combating climate change: NYDFS calls on insurance industry to help

On 26 July 2017, the New York Department of Financial Services (the “NYDFS”) issued Circular Letter No. 9 (2017) (the “Circular Letter”) and a corresponding press release, directed at all life, property/casualty, and health insurers authorized in New York that encourages insurers to consider offering premium discounts to policyholders who adopt various energy efficiency measures

Posted in Latin America, Market developments, Regulatory and legislative updates

Mexico: Insurance regulator provides 2017 required minimum paid-in capital for insurers and bonding companies

Introduction On June 5 2017 the National Insurance and Bonds Commission amended the Sole Provisions on Insurance and Bonds to provide the value of the investment unit (UDI) that insurers and bonding companies must consider when calculating their required minimum paid-in capital. Insurers and bonding companies must comply with the required minimum paid-in capital each

Posted in Market developments, USA

Draft Senate Health Bill Finally Revealed—Vote Could Take Place as Early Next Week

On June 22, 2017, Republican Senators released a “discussion draft” of the Better Care Reconciliation Act (BCRA). The draft is the first public glimpse at the Senate version of the American Health Care Act bill, which narrowly passed the House this past May with the objective of repealing and replacing certain portions of the Affordable

Posted in Market developments, UK

UK: Government sets out in the Queen’s Speech measures for protecting insurance customers

The government has today set out the details of its legislative programme for the next two years in the Queen’s Speech.  One of the issues to be addressed in this parliamentary session will be tackling the “compensation culture” surrounding whiplash claims, in addition to much stricter regulation of the activities of claims management companies (“CMCs“).

Posted in Market developments, USA

US: Service of Suit Clauses: Do They Also Dictate the Applicable Law in Reinsurance Disputes?

Hogan Lovells Litigation and Arbitration partner, Pieter Van Tol, has written a recent article, entitled “Service of Suit Clauses: Do They Also Dictate the Applicable Law in Reinsurance Disputes?” The article was published in the last ARIAS Quarterly. This should be of particular interest to practitioners and companies with connections to New York because, as noted in the

Posted in Market developments, Poland, Regulatory and legislative updates

The Polish regulator’s position on insurance companies publishing their standard contracts on their websites

Background to the issuing of the Polish regulator’s position Based on the new regulation in the Polish insurance market that entered into force on 1 January 2016, the general terms and conditions of insurance (“GTC“) as well as other standard contracts must be published by insurers on their websites. The Polish regulator (“KNF“) noticed, however,

Posted in European Union, Market developments, Regulatory and legislative updates, UK

Industry at odds with regulators over new framework for insurance recovery and resolution

There is an emergent divergence of opinion between trade body Insurance Europe and regulators. Will calls for further regulation create more substantial fissures? Insurance Europe, a trade body comprised of insurance associations representing approximately 95% of European premium insurance income, recently issued a press release reaffirming its stance on EU proposals for harmonising recovery and resolution

Posted in Asia, China and Hong Kong, Market developments

The future of Hong Kong’s insurance industry – New focus on reinsurance and captives?

The Hong Kong Financial Services Development Council, an advisory body to the government, has recently released a report on the Hong Kong insurance sector. Its key recommendations are: Boosting the Hong Kong reinsurance market, including by negotiating preferential treatment for Hong Kong reinsurers under C-ROSS, China’s risk-based capital regime, and by extending tax incentives for

Posted in Market developments, Regulatory and legislative updates, UK

Upcoming Webinar: Insurance M&A – recent developments in the sector

Tuesday 23 May 2017 17.00 – 17.50BST/18.00 – 18.50 CEST/12.00 – 12.50 EDT What can we expect from M&A in the insurance industry in 2017?  Will businesses pause in pursuit of their M&A plans as a consequence of the forthcoming UK elections, Article 50 negotiations and Trump’s agenda amongst other factors or will M&A activity

Posted in European Union, Market developments, Regulatory and legislative updates, UK

Webinar: Brexit issues for insurance companies – The countdown to Brexit starts now

On Thursday 30 March we held our latest Brexit webinar for insurance companies.  The UK has two years to negotiate and reach an exit deal, unless all EU Member states unanimously agree to extend this deadline. Many insurance companies will need to start thinking about the implementation of their plans. They also need to consider

Posted in European Union, Market developments, Regulatory and legislative updates, UK

Report: Insurance and structured finance – a new dawn?

A growing trend is emerging within the insurance sector, where insurers and other users of insurance products are looking to structured finance solutions both from an investment and risk management perspective. What are the driving forces behind this development? Is regulation enhancing or impeding the trend? What role do insurers and other participants play in

Posted in Market developments, USA

Trump administration issues proposed health insurance market stabilization rule: Will it be enough to stabilize exchange participation and premium rates?

On 15 February 2017, the Centers for Medicare & Medicaid Services (CMS) took a step toward addressing concerns about the stability of the individual and small group health insurance markets by proposing a modicum of regulatory relief for insurers. Most of the proposed changes are relatively modest and, for the most part, would not be

Posted in Market developments, UK

UK: Consultation on New Regulatory Framework for Insurance Linked Securities Opens

The FCA have opened a consultation on proposals to amend the FCA Handbook to incorporate a new regulated activity of “insurance risk transformation”. The consultation documentation can be found on the FCA’s site, here. Responses are due by 14 March 2017. The FCA are proposing changes to parts of the Handbook to incorporate Insurance Linked

Posted in Market developments, Regulatory and legislative updates, USA

US: How distributed ledger technology might grow in the insurance industry

      On Jan. 5, 2017, the Department of Treasury Federal Insurance Office held its first committee meeting of the new year.  Several topics were addressed, including the use of blockchain/distributed ledger technology (“DLT”) in the insurance industry.  Matt Higginson of McKinsey & Company presented this topic to the committee.  While DLT’s impact on

Posted in Market developments, Regulatory and legislative updates, UK

Reflections on the major new insurance legislation of 2016, and what it may mean in 2017 – A Q&A with Helen Chapman and Steven McEwan

This article was first published in Modern Claims Magazine in November 2016. Charlotte Parkinson, Modern Claims spoke with Steven McEwan and Helen Chapman at heavyweight law firm Hogan Lovells about their thoughts on the Insurance Act 2015, as well as the implications of Solvency II for consumers, insurers and defendants… Click here to read the full

Posted in Asia, European Union, France, Germany, Hungary, Italy, Latin America, Market developments, Poland, Regulatory and legislative updates, Russia, UK, USA

Hogan Lovells: Insurance Industry Perspectives – 2016 Review

Hogan Lovells have produced a brochure highlighting key trends in the insurance industry as well as a number of articles on industry issues.  The brochure also showcases the strength and depth of our insurance practice, and our client events and thought leadership. Click here to read the full brochure.

Posted in European Union, Market developments

Insurance Europe asks for simpler, future and tech-proof EU consumer protection rules

Insurance Europe, the federation representing insurance and reinsurance undertakings across the EU, issued last 5 December a briefing asking for “better, not more, information for consumers” as regards the new Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation and the Insurance Distribution Directive (IDD). According to Insurance Europe, the new EU regulations, such as the

Posted in Asia, China and Hong Kong, European Union, France, Germany, Hungary, Indonesia, Italy, Japan, Latin America, Market developments, Poland, Regulatory and legislative updates, Russia, Singapore, Singapore, South Africa, Spain, The Netherlands, UK, USA, Vietnam

Hogan Lovells sponsoring InsurTech Rising 2016

Running from 14 to 16 November, the InsurTech Rising conference and Blockchain Summit will bring together key startups and incumbents shaping the InsurTech sector. Hogan Lovells is the conference’s Gold Sponsor and will be presenting on blockchain, the internet of things and insurance regulation, as well as moderating a panel discussion, introducing demos from a

Posted in Market developments, UK

UK: Swings and Roundabouts: An Economic Analysis of Price Discrimination and Cross-Subsidy

The FCA recently published Occasional Paper No.22, analysing price discrimination and cross-subsidy in financial services.  Already used widely in the market, these pricing practices will only become more common with the advent of Big Data.  Are they a cause for concern, or just a natural aspect of healthy competition?  The Paper considers the economic impacts

Posted in Market developments, Regulatory and legislative updates, UK

Event: Insurance and structured finance – a new dawn

A growing trend is emerging within the insurance sector, where insurers and other users of insurance products are looking to structured finance solutions both from an investment and risk management perspective. What are the driving forces behind this development? Is regulation enhancing or impeding the trend? What role do insurers and other participants play in

Posted in Market developments, Regulatory and legislative updates, UK

Plans for secondary annuities market pulled by UK Government

Yesterday (18 October 2016), the UK Government announced it will not be taking forward its plans to create a secondary annuities market. The announcement was unexpected – having set the course for creating more choice for holders of annuities by enabling them to surrender an annuity back to the provider or sell it to a

Posted in Market developments, Regulatory and legislative updates, UK

A chance for second thoughts… Creating a secondary annuity market for the UK

Since greater pensions freedoms were introduced in April 2015, individuals retiring in the UK have had significantly wider choice where it comes to accessing their pension savings. The choices now include: taking all the pension savings as a lump sum, subject to income tax on 75% of it; taking up to 25% of the pension