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Category Archives: Regulatory and legislative updates

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Posted in Regulatory and legislative updates, UK

UK: Corporate Insurance Newsletter – October 2019

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: Latest Brexit related  papers and other material from the HM Treasury, PRA, FCA and EIOPA FCA’s papers on

Posted in Regulatory and legislative updates, UK

UK: FCA Market Study into General Insurance Pricing Practices: time to look at pricing strategies?

On 4 October 2019, the FCA published its much anticipated Interim Report on its Market Study into general insurance pricing practices (the “Interim Report“). The Market Study stems from the work of the FCA in its Thematic Review into pricing practices in the retail insurance sector which concluded that further action was necessary due to

Posted in Regulatory and legislative updates, UK

UK: Corporate Insurance Newsletter – September 2019

The Hogan Lovells’ Corporate Insurance Newsletter for September 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  papers and other material from the HM Treasury, PRA and FCA PRA’s latest consultations on 

Posted in Regulatory and legislative updates, UK

UK: Prudent Person Principle – PRA sets out its expectations

  On 18 September 2019, the Prudential Regulation Authority (the “PRA”) published Consultation Paper (“CP”) 22/19, which details its proposed expectations of firms investing in accordance with the Prudent Person Principle (“PPP”). Background The PPP can be found in Chapters 2 to 5 of the Investments Part of the PRA Rulebook, which transposes Article 132

Posted in Regulatory and legislative updates, UK

UK: Corporate Insurance Newsletter – July and August 2019

The Hogan Lovells’ Corporate Insurance Newsletter for July and August 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  papers and other material from the HM Treasury, PRA and FCA FCA’s latest

Posted in Regulatory and legislative updates, Spain

A rise in W&I insurance in Spain

First published in the International Bar Association’s August newsletter In recent years the Spanish Mergers and Acquisitions (M&A) market has seen in an increase in warranty and indemnity (W&I) insurance as a means to cover certain transactions risks, namely those losses or liabilities arising from a breach of warranty or a representation. Click here to continue

Posted in Regulatory and legislative updates, UK

Webinar: Insurance M&A – Recent developments in the sector – Wednesday, 18 September 2019

Many of the trends underpinning high levels of merger and acquisition (M&A) activity in the insurance sector over the past few years, such as persistently low interest rates, tightening regulation, and overcapacity in certain markets, continue to exist today. So what can we expect from M&A in the insurance industry in 2019? Will businesses pause

Posted in Asia, China and Hong Kong, Indonesia, Japan, Regulatory and legislative updates, Singapore, Vietnam

Changes in insurance regulation: China / Hong Kong / Singapore / Indonesia / Vietnam

Our Asia insurance regulatory tracker for the first and second quarter of 2019 is attached. The tracker covers a range of developments including the Hong Kong Insurance Authority’s newly issued Guideline on Qualifying Deferred Annuity Policy, the Monetary Authority of Singapore’s Guidance to Capital Markets Intermediaries on Enhancing AML/CFT Frameworks and Controls, and China’s recently adopted

Posted in European Union, Regulatory and legislative updates, UK

EIOPA Cloud Outsourcing Guidelines Consultation

We mentioned in our blog on 12 April 2019 that the European Insurance and Occupational Pension Authority (EIOPA) intended to publish guidance on cloud outsourcing in the (re)insurance sector. Following the lead of the European Banking Authority (EBA), whose Recommendations on outsourcing to cloud service providers for the banking industry have been in force since

Posted in Regulatory and legislative updates, UK

UK: FCA draft vulnerability guidance: embedding ‘doing the right thing’ in firms’ culture

The FCA has published a consultation on proposed non-Handbook guidance for firms on the fair treatment of vulnerable customers. The FCA reiterates that vulnerability is one of its key priorities and makes it clear that the draft guidance sets out its view of what its Principles for Businesses require of financial services firms to ensure

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 PRA, Regulatory and legislative updates, UK

UK: Focus on Climate Change and Green Finance

On 5 June 2019, the Treasury Committee launched an inquiry into the decarbonisation of the UK economy and green finance which will look at the role of the UK regulators and financial services firms in supporting the government’s climate change commitments. One of the areas under scrutiny is how financial services firms are delivering green

Posted in Regulatory and legislative updates, UK

A useful reminder for the general insurance sector: FCA’s multi-firm review into the supervision by principal firms of their ARs in the investment management sector

On 20 May 2019, the FCA published findings from its multi-firm review into the supervision by principal firms of their appointed representatives (“ARs“) in the investment management sector (“Investment Management Sector Review“). This review was conducted following the publication in July 2016 of the FCA’s Thematic Review TR16/6: Principals and their appointed representatives in the

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 Regulatory and legislative updates, UK, USA

Breakfast Discussion: Insurer restructuring, run – off and resolution: the view from both sides of the Pond

The past decade has seen far reaching changes in the occurrence, management and restructuring of liabilities in the life and non-life insurance sectors. Please join a team of Hogan Lovells thought leaders from New York and London for a breakfast discussion of both these changes and the opportunities they might create for insurance industry professionals

Posted in European Union, Regulatory and legislative updates, UK

EIOPA to produce cloud outsourcing guidelines for insurers

On 27 March 2019, the European Insurance and Occupational Pensions Authority (EIOPA) published a report that looks at outsourcing to the cloud by (re)insurers. The report was issued in response to the European Commission’s request (through its FinTech Action Plan published on 3 March 2018) that the European Supervisory Authorities – EIOPA, the European Banking

Posted in Regulatory and legislative updates, UK

FCA warns GI firms to place greater focus on customer outcomes

FCA publishes the results of its Thematic Review into GI insurance distribution chains The FCA’s Thematic Review into GI insurance distribution chains (published on 10 April 2019) has concluded that certain GI sector manufacturing, sales and distribution approaches can lead to customers purchasing inappropriate products, paying excessive prices or receiving poor service. The report highlights

Posted in Regulatory and legislative updates, UK

UK: Changes to Financial Ombudsman Service (FOS): (1) increased award limit of £350,000; (2) jurisdiction extended to SMEs

From 1 April 2019 two significant changes take effect: The jurisdiction of the FOS is extended to cover small and medium-sized enterprises, certain charities and trusts and personal guarantors; and The FOS award limit is increased from £150,000 to £350,000 (an increase of 133%). These changes follow a short consultation process in late 2018.  For

Posted in Italy, Regulatory and legislative updates

Brexit: Italian measures for UK insurers and intermediaries

Last night the Italian Government approved the law decree aimed at ensuring financial stability and market integrity in the event of hard Brexit (the “Decree”). The final version of the Decree is expected to be issued soon and will enter into force upon the publication on the Official Journal. Amendments in the final version of

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 Italy, Regulatory and legislative updates

Unit-linked policies: a new judgement of the Italian Supreme Court

On 5 March the Italian Supreme Court issued a new important judgment on unit-linked policies and their nature. Unlike previous decisions rendered over the past years, in which the Supreme Court merely referred to the lower courts the task of assessing the features of the disputed policies so as to verify whether they could be

Posted in Regulatory and legislative updates, Spain

Spain: Contingency measures following no-deal Brexit published –and they guarantee continuity of insurance contracts and smooth adaptation to new regime for British insurers

What is all about? Brexit month is finally here –or is it? Interests at stake on both sides of the Channel, fearing consequences of a no-deal Brexit, may end up cristalysing in a delay and extension to Article 50 of the TEU. Whatever the case, as things stand now, the UK is due to leave

Posted in Regulatory and legislative updates, UK

UK: Corporate Insurance Newsletter – February 2019

The Hogan Lovells’ Corporate Insurance Newsletter for February  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 The FCA’s final