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Category Archives: Market developments

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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

Posted in Market developments, Regulatory and legislative updates, UK

Webinar – Recent developments in Part VII transfers and schemes of arrangement for insurers

Part VII transfers continue to be an important tool for both M&A and group reorganisations in the insurance industry, not least because of Brexit. In addition, there is an increasing interest in the use of schemes of arrangement to restructure insurance businesses. Click here to read more and to register for the Webinar.

Posted in Market developments, Regulatory and legislative updates, USA

US: NAIC Developing Best Practices for Regulatory Review of Predictive Models and Analytics in Rate Filings

As computing power grows exponentially, it has opened the actuarial modeling world to new and sophisticated forms of data collection and analysis, resulting in insurance companies seeking increased “predictiveness” of potential losses by employing ever more complex modeling methods in establishing, and justifying, premium rates. Predictive analytics, which involve a number of techniques, including data

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

How will pharmacogenetics influence the life insurance industry?

Pharmacogenetics is the study of how genes affect a person’s reaction to medicines. The combination of pharmacology (the science of drugs) and genomics (the study of genes and their functions) leads to the development of medications that will be effective and safe, as they will be tailored to a person’s genetic make-up. A small blood

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

Insurance Horizons 2018

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.

Posted in Market developments, USA

NAIC holds first hearing on EU-U.S. covered agreement reinsurance collateral elimination

In a much anticipated public hearing, The National Association of Insurance Commissioners (“NAIC”) discussed how U.S. states should address the elimination of reinsurance collateral requirements for EU reinsurers of U.S. insurance business that qualify under the bilateral agreement between the U.S. and the EU (the “Covered Agreement”). To learn about key takeaways from the hearing

Posted in European Union, Market developments, USA

US: National Association of Insurance Commissioners to Hold February Hearing on Collateral Requirements for EU Reinsurers

The National Association of Insurance Commissioners (NAIC) will hold a public hearing in New York City on 20 February 2018 to consider how U.S. States should address the elimination of reinsurance collateral requirements for EU reinsurers of U.S. insurance business that were covered in the bilateral agreement between the U.S. and the EU on Prudential

Posted in Market developments, Regulatory and legislative updates, USA

Interview: Cyber Insurance: Managing Your Cyber Liability and Avoiding Coverage Gaps

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. Click here to continue reading…

Posted in Market developments, USA

The evolving cyber insurance market: How IT companies, financial institutions, and other nontraditional players can offer cyber insurance coverage to their customers

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.