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Category Archives: Regulatory and legislative updates

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Posted in European Union, Regulatory and legislative updates, UK

The Treasury Committee inquiry into EU insurance regulation – what have we learned so far?

http://www.hlinsurancelaw.com/ To supplement its work on the relationship that the UK might seek to have with the EU following Brexit, the Treasury Committee of the House of Commons established in September 2016 an inquiry into EU insurance regulation. The inquiry has four main objectives: to consider the options for the UK insurance industry that are

Posted in Regulatory and legislative updates, UK

Global Insurance Summit – February 2017

We welcomed over 100 clients to our Global Insurance Summit last month. They gathered, in the heart of the City of London, to hear from industry leaders, academics and new market players. The discussions centred around the changes we’re seeing around the world – whether political, economic, or technological. Our keynote speakers, Lord Adair Turner

Posted in Latin America, Regulatory and legislative updates

Mexico: CONDUSEF issues rules for registration of adhesion contracts

Introduction The National Commission for the Protection and Defence of Users of Financial Services (CONDUSEF) recently issued the General Provisions for the Registration of Insurance Adhesion Contracts, which regulate the organisation and operation of the Registry of Adhesion Insurance Contracts (RECAS). ‘Adhesion contracts’ are non-negotiable insurance contracts which are offered by insurers and accepted ‘as

Posted in Regulatory and legislative updates, Spain

Spain: The Draft Insurance Distribution Act

On 16 February 2017, the Spanish Insurance Regulator (the ”DGSFP”) submitted to the interested parties the final Draft of the Insurance Distribution Act (the ”ALDS”), which implements in Spain the Directive 2016/97 of the European Parliament and of the Council of 20 January 2016 on Insurance Distribution (the ”IDD”). The objectives of the ALDS are

Posted in Regulatory and legislative updates, UK

UK: FCA’s consultation paper on the implementation of the Insurance Distribution Directive

On 6 March 2017 the FCA published its first consultation paper (CP 17/7, the “Consultation Paper“) on its proposals for implementing the Insurance Distribution Directive ((EU) 2016/97, the “IDD“).  The deadline for implementation is 23 February 2018. The FCA plans to make a number of important changes to the FCA rules in order to accommodate

Posted in Regulatory and legislative updates, UK

UK: FCA’s policy statement on the final rules and guidance for PPI complaints handling

On the morning of 2 March 2017 the FCA published PS 17/3 (the “Policy Statement”), its response to feedback on its proposals regarding the handing of Payment Protection Insurance (“PPI“) mis-selling complaints.  The FCA’s original proposals were set out in CP 15/39 (see our blog post), and a further consultation was issued in CP 16/20

Posted in France, Germany, Italy, Poland, Regulatory and legislative updates, Spain, UK

The Insurance Distribution Directive….one year to go

  Member States across the EU are due to implement the Insurance Distribution Directive by 23 February 2018.     With just one year to go we have looked at what progress the supervisory authorities in France, Germany, Italy, Poland, Spain and the UK are making with their implementation plans and how firms in each country might be

Posted in Regulatory and legislative updates, UK

UK: A new insurance framework for driverless cars – Government Bill provides details

The Government has introduced the Vehicle Technology and Aviation Bill to Parliament, setting out in detail how the UK’s compulsory motor insurance framework will be amended to handle automated vehicles. Automated vehicles pose challenges for the conventional motor insurance regime in the UK, not least if an accident occurs when a vehicle is in driverless

Posted in Regulatory and legislative updates, USA

US: The “Final Final” Is Here: NYDFS Cybersecurity Regulations

As Hogan Lovells previously reported, the New York State Department of Financial Services (NYDFS) has launched a significant initiative to impose detailed cybersecurity requirements on covered financial institutions. On February 16, NYDFS issued its Final Rules, following the initial proposed rules published in September 2016 and two rounds of feedback via industry complaints and public

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 China and Hong Kong, Regulatory and legislative updates

China: CIRC Issues New Measures for Compliance Management of Insurance Companies

On 4 January 2017 the China Insurance Regulatory Commission (“CIRC“) published on its website the final version of the Measures on the Compliance Management of Insurance Companies (the “Compliance Measures“), which will become effective on 1 July 2017. The Compliance Measures apply to insurance companies and insurance groups established in China, but also act as

Posted in European Union, Germany, Regulatory and legislative updates, UK, USA

EU/U.S. Covered Agreement: What’s Next?

On January 13, 2017, representatives of the European Union and the United States of America issued a joint statement announcing that they had successfully concluded negotiation of an agreement (the “Agreement” or “Covered Agreement”) that both parties contend “will ensure ongoing robust insurance consumer protection and provide enhanced regulatory certainty for insurers and reinsurers operating

Posted in China and Hong Kong, Regulatory and legislative updates

New guidance note on reinsurance for Hong Kong insurers

    A new guidance note on reinsurance for Hong Kong insurers (“GN17“) came into effect on 1 January 2017. GN17 contains a number of general requirements with regard to the management and monitoring of reinsurance arrangements. The most significant changes in regulation are new approval requirements for certain alternative risk transfer and financial reinsurance

Posted in China and Hong Kong, Regulatory and legislative updates

New corporate governance requirements in Hong Kong

      New corporate governance standards for insurers authorised in Hong Kong came into effect on 1 January 2017. Hong Kong incorporated insurers and overseas insurers with a certain threshold of Hong Kong business must comply with the new guidance note 10 (“GN10“) issued by the Hong Kong regulator. GN10 provides that the chairman

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 Regulatory and legislative updates, USA

New York Department of Financial Services Cybersecurity Rules Revised and Delayed

      The New York Department of Financial Services (NYDFS) just issued major revisions to the cybersecurity regulations for financial institutions that were due to come into effect on January 1, 2017. To allow covered institutions more time to implement the rules, the effective date will now be March 1, 2017, with a series

Posted in Regulatory and legislative updates, UK

When insurance pays dividends….. Distribution of long-term insurance profits

On 30 December 2016, the Companies Act 2006 (Distributions of Insurance Companies) Regulations 2016 (the “Regulations“) came into force.  The Regulations apply to distributions made on or after that date by reference to accounts prepared for any period ending on or after 1 January 2016.  A copy of the Regulations is available here. The purpose

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 Latin America, Regulatory and legislative updates

Mexico: Special fund requirements clarified

The Ministry of Finance and Public Credit recently issued a ruling interpreting the requirement to establish special funds under the Insurance and Bonding Companies Law. Article 274 of the law requires life, personal accident, medical expense, health, civil and professional liability, maritime and transport, fire, agricultural, automobile, catastrophic and diverse risk insurers to establish special

Posted in Regulatory and legislative updates, UK

UK: Is your professional indemnity insurance up to scratch? FCA undertakes a review of general insurance intermediaries

Background In December 2016 the FCA released a report setting out the results of a thematic review it conducted into general insurance intermediaries’ professional indemnity insurance.  Professional indemnity insurance (“PII“) gives protection to firms and their customers in the event of professional failings by the firm.  The purpose of the review was to evaluate the

Posted in Regulatory and legislative updates, UK

UK: Tackling the whiplash compensation culture: Government proposes reforms

The Issue The number of RTA (road traffic accident) related soft tissue injury claims (known as ‘whiplash claims’) has increased by 50% since 2006.  This is despite the fact that the UK’s roads are among the safest in Europe, improvements in vehicle safety and a decrease in the number of reported road accidents. A significant reason for

Posted in France, Regulatory and legislative updates

France: Notice on the notification of the persons who effectively run the undertaking or are involved in key functions by the ACPR

The French Insurance Supervision Authority (Autorité de Contrôle Prudentiel et de Résolution – “ACPR“) recently published a Notice on the appointment and renewal of persons who effectively run insurance/ reinsurance undertakings or are responsible for other key functions (“Notice“). These persons must be notified to the ACPR to allow the latter to assess the fit

Posted in Latin America, Regulatory and legislative updates

Mexico: Insurance regulator modifies accounting reporting standards for 2016

Insurers are still adapting to the new accounting, financial and reporting standards that took effect in January 2016 as a consequence of the financial and accounting aspects of the Solvency II-type regime. The initial reports filed for the first quarter of 2016 are still being tested and restated by many insurers, as the models that