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Category Archives: Market developments

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

Engage is here

We have moved our content to the new Hogan Lovells platform Engage.  Engage gives you the latest legal and regulatory news and provides insights and analysis for your business, from across our global network, when you need it. If you have subscribed to this blog, you will receive a launch email for Engage on April 20

Posted in Market developments, Regulatory and legislative updates, UK

FCA publishes “Dear CEO” letter concerning Covid-19 and business interruption insurance for SMEs

Insurers and business interruption insurance policies have been coming under increasing scrutiny as a result of the economic disruption to business as a result of Covid-19. Yesterday, the FCA published a “Dear CEO” letter to insurers setting out its expectations in relation to the assessment, settlement and payment of claims to SMEs under business interruption

Posted in Belgium, Croatia, European Union, France, Germany, Hungary, Italy, Luxembourg, Market developments, Poland, Regulatory and legislative updates, Russia, Spain, The Netherlands, UK

Italian first measures in favor of insurance market operators against COVID-19 emergency

As a result of the health emergency caused by the widespread outbreak of the COVID-19 virus and disease, specific measures have been adopted in Italy starting from the beginning of March 2020 in order to contain the impact thereof at various levels and sectors of the economy. In particular, the Italian Government adopted Law Decree

Posted in Belgium, Croatia, France, Germany, Hungary, Italy, Luxembourg, Market developments, Poland, Regulatory and legislative updates, Spain, The Netherlands, UK

Mixed responses from European regulators as EIOPA urges insurers to hold back on dividend payments

On 2 April 2020, the European Insurance and Occupational Pensions Authority (EIOPA) urged all (re)insurers to temporarily suspend dividend distributions and share buybacks.  The response from insurance regulators in EU countries has been mixed.  In some countries the regulator has followed a similar approach.  However, the German regulator, BaFin, has stated that it considers the

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

EIOPA, PRA and FCA regulatory reporting and public disclosure requirements in response to COVID-19

EIOPA published recommendations, on 20 March 2020, addressed to the EU insurance sector on supervisory flexibility regarding the deadline of supervisory and public disclosure by insurers, in light of the COVID-19 pandemic. In consideration of these recommendations, on 23 March 2020, the PRA published a statement on COVID-19 regulatory reporting amendments for UK insurers. It

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, Sanctions, Singapore, Singapore, South Africa, Spain, The Netherlands, UK, USA, Vietnam

IAIS measures to provide operational relief to supervisors and insurers in light of COVID-19

The International Association of Insurance Supervisors (IAIS), on 27 March 2020, published a press release about the measures it is taking to address the impact of COVID-19 on the insurance sector. This includes using the framework it has developed for forward-looking risk to undertake a targeted assessment of the impact of COVID-19 on the global

Posted in Market developments, Regulatory and legislative updates, UK

COVID-19 webinar – Insurance coverage considerations

Thursday, 02 April 2020, 15:30 (BST) One of a series of live webinars to help clients to respond to the impact of the global coronavirus pandemic on their business. Businesses who suffer losses stemming from the COVID-19 pandemic will want to understand how their insurance arrangements will respond to this crisis. In 30 minutes, our insurance experts will cover how the

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

Engage is coming

We are changing how we share our blogs, newsletters, client alerts, publications and other pieces of legal news and analysis with you.  We are bringing them all together into one place: Hogan Lovells Engage. Engage gives you the latest legal and regulatory news and provides insights and analysis for your business, from across our global

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

EIOPA statement on actions to mitigate the impact of Coronavirus on the EU insurance sector

The European Insurance and Occupational Pensions Authority (EIOPA) issued on 17 March 2020 a statement addressed to the EU insurance sector acknowledging the significant consequences for financial services that the Coronavirus/COVID 19 situation may cause and informing about the actions that should be taken by insurers and that will be taken by EIOPA to help

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

EIOPA’s timely reminder of the impact of low interest rates on insurers

Insurance businesses in a low interest rate environment The Supervisory Statement released by the European Insurance and Occupational Pensions Authority (EIOPA) on Wednesday, 18 March is a timely reminder of the potential negative side effects of low or negative interest rates on both life and non-life insurers. EIOPA considers the current ultra-low interest rate environment

Posted in Market developments, Regulatory and legislative updates, Spain

Hogan Lovells analyzes the Spanish Royal Decree 463/2020 of 14 March declaring the state of alarm for the management of the health crisis situation caused by COVID-19, in relation to the insurance sector

On Saturday 14 March, Spain’s Official State Gazette published Royal Decree 463/2020 declaring the state of alarm for the management of the health crisis situation caused by COVID-19 (RDEA). Under this Royal Decree, Spain has adopted a series of extraordinary measures of great relevance and impact with a threefold objective: i) to protect the health

Posted in Market developments, Regulatory and legislative updates, UK

‘Open Insurance’: What does the future hold?

FCA’s Call for Input on Open Finance Open Finance refers to the extension of open-banking-like data sharing and third-party access to a wider range of financial sectors and products, including in the insurance market. The FCA highlighted in its recent market study on general insurance pricing practices (October 2019), that Open Finance and the increasing

Posted in Market developments, Regulatory and legislative updates, UK

Fever in the morning, Cover all through the night: Insurance and planning for the effect of Coronavirus on business

COVID-19 has already had a significant economic impact, which is likely to increase as Wuhan- and Italy-style lockdowns of large regions are implemented in other areas across the globe. While much has been said about large-scale flexible working, this will clearly not be possible for all businesses, and economic losses caused by disruptions including closure

Posted in Market developments, Regulatory and legislative updates, UK

UK: FCA Signposts Travellers with Pre-Existing Medical Conditions To Better Outcomes

Some consumers with pre-existing medical conditions (“PEMCs”) have problems navigating the travel insurance market and finding affordable cover given their medical conditions. Some are declined cover, only offered cover that excludes their PEMC or are offered what they consider to be unaffordable premiums. To address this problem, the FCA is introducing new signposting rules and guidance

Posted in Market developments, UK

Pool Re launches Pool Re Solutions – a shift in the insurance industry’s relationship with terrorism risk?

Pool Reinsurance Company Limited has launched Pool Re Solutions, a new in-house centre of excellence for understanding, modelling and managing the threat of terrorism. The new unit is aimed at helping the reinsurer support its members in a bid to address market failures that exist in capacity, demand and information gaps. It is hoped that

Posted in Italy, Market developments, Regulatory and legislative updates

Italy – Newsflash: Latest News for the Insurance Sector

1. IVASS monitoring KIDs of insurance-based investment products (IBIPs) On 10 July, IVASS launched a preliminary public consultation which could possibly be followed by a tendering procedure for the selection of a service provider which will be charged with the task of setting up and managing an online portal for the collection, updating and monitoring

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

Tesla’s insurance plans – the possibility of a revolutionary product

Tesla CEO Elon Musk recently declared that the company intends to create an insurance product ‘much more compelling than everything else out there’. Victor Fornasier, partner at Hogan Lovells, discusses with Tom Inchley from Lexis Nexis, Tesla’s plans and what they could mean for the car insurance industry. Click here for the article. This article

Posted in Asia, European Union, Latin America, Market developments, Regulatory and legislative updates, Russia, UK, USA

Warranty and Indemnity Insurance – the practice behind the promise

Global mergers and acquisitions transactions hit $3.5 trillion in 2018 making it the third-largest year on record for M&A by value. Within the private equity and real estate investment worlds, the insatiable appetite for warranty & indemnity insurance (“W&I”) to support transactions that has emerged in the last decade has persisted. This is not without

Posted in Case reports, Market developments, Regulatory and legislative updates, South Africa

South Africa: Purpose and simple language take precedence

On 14 March 2019, the Supreme Court of Appeal (SCA) dismissed an appeal by Centriq Insurance Company Ltd (Centriq) against a ruling of the Free State High Court holding liable a financial advisor under a professional indemnity insurance policy. The SCA held that Centriq could not rely on an exclusion in the policy that was

Posted in Market developments, Regulatory and legislative updates, USA

US: A look at the impact and insurance regulatory challenges of InsurTech innovations, AI, machine learning, blockchain, and smart contracts

Hogan Lovells counsel Robert Fettman discusses the challenges and opportunities that InsurTech innovations and technologies like blockchain, distributed ledger technology (DLT), and smart contracts present to the U.S. insurance industry. Click here to read the full interview.

Posted in European Union, Market developments, Russia, UK, USA

Webinar: Sanctions: Navigating the Labyrinth

The pace of change to the global financial sanctions landscape picked up dramatically during the course of 2018. Global (re)insurers, brokers and policyholders now face an increasingly complex lattice of measures imposed by the UN, U.S., EU, UK and other countries. These measures often have different scope, jurisdictional reach and can directly conflict with one

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

UK: Corporate Insurance Newsletter – December 2018

The Hogan Lovells’ Corporate Insurance Newsletter for December 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: Latest Brexit related consultation papers and other material from the HM Treasury, PRA and FCA  Regulation of claims

Posted in Market developments, USA

US: Federal Reserve previews forthcoming insurance capital rules

In prepared remarks before the American Council of Life Insurer’s Executive Roundtable (Naples, Florida, 9 January 2019), Federal Reserve Board (FRB) Vice Chairman for Supervision Randal Quarles provided the insurance industry with a high-level overview of the FRB’s forthcoming proposal on consolidated capital requirements for insurers supervised by the FRB. Background The Dodd-Frank Wall Street

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

Too soon to harmonize EU Insurance Guarantee Schemes?

Insurance Guarantee Schemes (“IGS“) provide last resort protection to consumers in the event that their insurance company becomes insolvent or simply unable to fulfill their contractual commitments. This sort of protection networks have been made effective through directives in other sectors, such as banking and securities. Nevertheless, a directive has yet to be implemented for