As a global insurance industry team, we aim to follow industry trends and developments as closely as possible in order to deliver well informed perspectives and thought leadership to our clients and contacts.
Our Insurance Horizons 2018 brochure considers the impact of technology, interest rates, protectionism, excess capacity in the reinsurance market and cyber risk. We also look in detail at M&A in the industry, sanctions and insurtech in Asia, and provide a focus on the development of micro-insurance.
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Please join specialists from our financial services, regulatory investigations and enforcement and employment teams for a CPD accredited breakfast seminar looking at the impact of the requirements on the insurance industry and how firms can best prepare for this change.
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The Hogan Lovells’ Corporate Insurance Newsletter for April 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:
- A number of PRA consultation papers on Solvency II reporting matters
- The FCA and PRA business plans for 2018/19
- HM Treasury’s consultation on claims management regulations.
It has now been two months since the PRA opened a consultation on the eligibility of unfunded guarantees as a form of credit risk mitigation for banks. The consultation will remain open for responses for two and a half more weeks – until 16 May 2018.
Although the consultation relates to banking regulation, the consultation has caused deep concerns for credit insurers. This is because credit insurers provide a large proportion of the credit risk mitigation protection on which banks rely. If brought into force, some of the proposals made by the PRA in its consultation paper would make many traditional credit insurance products ineligible as a form of credit risk mitigation for banks.
We have been working with some of our clients to consider how the PRA’s proposals might affect credit insurers and the products they offer. From our discussions it is clear that there are some points of concern for the industry as a whole. We have written a paper which examines the background to the consultation and comments on the proposals and their potential effect on credit insurers and banks. You can read the paper here.
In a letter to the market published by IVASS yesterday, the Italian insurance regulator expressly clarified that the scope of application of the guidelines set out in a previous letter to the market also includes EU insurance undertakings acting in Italy under both the right of establishment and freedom of services regimes.
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In a precedent setting judgment, the Supreme Court of Appeal in Drake Flemmer & Orsmond Inc & Another v Gajjar NO  ZASCA 169 (1 December 2017) pronounced on the principles applicable in respect of assessment of contractual damages arising from breach of mandate by an attorney.
The court had to determine at what date damages against the attorneys for professional negligence should be assessed.
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Insurance Sector Team Members:
Partners: Christine Rodrigues; Ayanda Nondwana; Rachel Kelly; Clive Rumsey; SJ Thema; Lesley Morphet; Jean Ewang; Jackie Peart
The Hogan Lovells’ Corporate Insurance Newsletter for March 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:
- A number of items related to Brexit, including papers from the PRA and FCA, Theresa May’s speech and a paper from Insurance Europe on the consequences of Brexit on existing contracts
- The European Commission’s paper on its financing sustainable growth action plan.
Felipe Vazquez Acedo and Guillermo Ruiz Barrilero, lawyers in our Madrid office, have written an article on the MiFID II delegated regulations on notification of qualifying holdings on the acquisition of an investment company and on authorisation requirements and their relationship to insurance and reinsurance undertakings.
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On 29 March 2018, the Treasury Commons Select Committee (the “Committee“) announced an inquiry into economic crime in the UK. The inquiry will have two strands:
- the anti-money laundering, counter-terrorist financing and sanctions regimes in relation to which the Committee is seeking evidence on, amongst other matters, the scale of sanctions violations in the UK, the current legislative and regulatory landscape, including any weaknesses in the rules and their enforcement and the effectiveness of the Treasury and its associated bodies in supporting and supervising the regimes.
- consumers and economic crime, in respect of which the Committee is seeking evidence on, amongst other matters, the scale and nature of economic crime faced by consumers, including emerging trends and the response of the Treasury and its associated bodies to economic crime consumers face.
The inquiry appears to be aimed, in particular, at the claimed use of proceeds of crime within the London property market. However, economic crime on a wider scale is also set to be examined.
In light of the introduction of the new powers under the Policing and Crime Act 2017 for the Office of Financial Sanctions Implementation (“OFSI“) which came into effect in April 2017, any findings made by the inquiry into the effectiveness of financial sanctions implementation in the UK could be interesting in potentially indicating the future approach to be taken by OFSI in relation to enforcement action. The deadline for written evidence is 8 May 2018 and we will be monitoring developments in this space.
If you have any queries regarding the implementation of financial sanctions in the UK or regarding your company’s compliance with the same, please contact a member of the Hogan Lovells team.
The proposed amendments to the regulations of the Long-term Insurance Act, 1998 and Short-term Insurance Act, 1998 are out for comment with submissions due on 23 April 2018.
It is envisaged that the proposed regulations will come into effect on 1 July 2018, which is in
line with the proposed effective date of the Insurance Act, 2017 (Insurance Act).
The Insurance Act, will repeal all the prudential sections of both the Long-term Insurance Act, 1998 (LTIA) and the Short-term Insurance Act, 1998 (STIA).
Keeping in line with the move to a risk-based solvency model for insurers, the requirement for intermediaries to have a bank guarantee of a guarantee issued by the Intermediaries Guarantee Facility (IGF) has been done away with.
Insurance Sector Team Members:
Partners: Christine Rodrigues; Ayanda Nondwana Rachel Kelly; Clive Rumsey; SJ Thema; Lesley Morphet; Jean Ewang; Jackie Peart