On Friday 8 December 2017, the Risk Transformation Regulations 2017 and the Risk Transformation (Tax) Regulations 2017 (the ‘Regulations’) will come in to effect bringing to fruition the Government’s plans to position the UK as a new centre for the use of insurance linked securities.
The Regulations create a new regulatory and tax framework which introduces a new corporate structure for multi-arrangement insurance special purpose vehicles (‘ISPVs’) and a new regulated activity of insurance risk transformation under the Financial Services and Markets Act 2000. The authorisation and supervision of ISPVs will be regulated by the Financial Conduct Authority (‘FCA’) and Prudential Regulation Authority (‘PRA’). New rules in the FCA Handbook and PRA Rulebook will come into force on 8 December.
For details about the background to the Government’s proposals and the structure of the new regime see our blog article ‘ILS – one step closer to creating a London hub‘. Or view our webinar on insurance linked securities featuring speakers from HM Treasury and HM Revenue & Customs.
The Hogan Lovells’ Corporate Insurance Newsletter for November has been published. This provides a round-up of UK, EU and international regulatory developments relevant to UK based insurance market participants. In this issue, amongst other items, we cover:
- Launch of the FCA’s market study of the wholesale insurance brokers market
- Publication by the FCA and PRA of near final rules creating the regulatory framework for insurance-linked securities
- Publication by EIOPA of its first set of advice on the Solvency II Delegated Regulation and consultation on second set of advice.
Mark Goodman is a partner in our San Francisco office. In this hoganlovells.com interview, he addresses the need for companies to manage their cyber risk and the role that insurance plays in an organization’s overall risk management and cyber liability strategy.
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In this hoganlovells.com interview, Hogan Lovells counsel Robert Fettman discusses the evolution of cyber insurance, the level of regulatory oversight applied to covered entities, and ways that noninsurance companies can offer their clients cyber insurance coverage.
The FCA has yesterday launched a market study into wholesale insurance broking practices. The FCA has published Terms of Reference for the study, which are discussed below. The FCA’s 2017 business plan (published in April of this year) signalled the FCA’s plans to undertake this market study (previously discussed on this blog here).
The FCA will look at whether the sector “fosters innovation and competition in the interests of its diverse range of clients“. In particular, the FCA highlights recent significant changes within the wholesale insurance sector, which has led to new services and business practices being developed by brokers. Continue Reading
On Thursday, November 16 Hogan Lovells will host the inaugural U.S. InsurTech symposium in New York. The program will explore current issues across the industry and will feature four panel discussions with leadership from top organizations in the field.
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To RSVP please contact us.
In September 2016, the treasury committee of the House of Commons (the Committee) launched an inquiry into EU insurance regulation and to supplement its work on the relationship that the UK might seek to have with the EU following Brexit.
Following the publication of various submissions and further evidence from a variety of market participants and interested parties, we published a note in March of this year, discussing the key issues that had begun to arise from the previous Committee’s investigations.
Click here to read the full article …
The Hogan Lovells’ Corporate Insurance Newsletter for October has been published. This provides a round-up of UK, EU and international regulatory developments relevant to UK based insurance market participants. In this issue, amongst other items, we cover:
- The publication of the results of the Treasury Select Committee’s inquiry into the implementation of Solvency II
- The PRA’s consultation paper setting out its expectations of firms in respect of the application of the matching adjustment
- EIOPA’s guidelines on execution only sales
A usual query that arises in Spain in almost any single reinsurance transaction or contract where some money is advanced or handed over between the parties is whether it is possible to set-off mutual debts within an insolvency proceedings.
Set-off is an equitable right that allows the parties to a contract to cancel or offset mutual debts to each other by asserting the amounts owed, subtracting one from the other and paying only the balance. In particular, the right of set-off is used in day-to-day business transactions between reinsurers and cedants (reinsured). Balances due to the reinsured for paid losses and earned premiums due from the reinsured to the reinsurer are netted out between the reinsured and the reinsurer through periodic accounting reports.
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The Insurance Distribution Directive ((EU) 2016/97, the “IDD”) came into force on 22 February 2016, and the current deadline for transposition by member states is 23 February 2018. The impact of the IDD has been previously discussed on this blog, most recently in March 2017, in light of the FCA’s first Consultation Paper. In a recent development, the European Parliament’s Economic and Monetary Affairs Committee (“ECON”) has recommended that the application date of the IDD is delayed until 1 October 2018. Continue Reading