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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, 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 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 The FCA reiterates that vulnerability is one of its key priorities and makes it clear that the draft guidance sets out its view of what its Principles for Businesses require of financial services firms to ensure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 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 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 Case reports, UK

UK: Reinsurers entitled to reject “spiking” of mesothelioma losses

In the first judgment to provide guidance on the allocation of mesothelioma liabilities at a reinsurance level, the Court of Appeal in Equitas Insurance Limited v Municipal Mutual Insurance Limited [2019] EWCA Civ 718 has ruled that insurers cannot choose to allocate their full loss to whichever reinsurance policy would produce the maximum recovery, ie

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 Case reports, UK

UK: We didn’t start the fire: Motor insurer not liable for property damage caused by car repair fire on private premises

In R&S Pilling t/a Phoenix Engineering v UK Insurance Limited [2019] UKSC 16, the Supreme Court addressed the question of whether or not a motor insurer should be liable for property damage caused by a fire which was started whilst a vehicle insured by it was being repaired on private land. The Facts Mr Holden,

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 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

Posted in UK

UK: OFSI flexes its muscles in imposition of first monetary penalty for breach of financial sanctions

Executive summary: On 21 January 2019, OFSI issued its first monetary penalty for a breach of financial sanctions, marking a significant development in the UK’s evolving sanctions enforcement landscape. OFSI’s first use of its new monetary penalty powers, introduced by the Policing and Crime Act 2017, resulted in a £5,000 penalty issued to R. Raphael

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 Regulatory and legislative updates, UK

UK: PRA proposals to Increase the Part VII Transfer Transaction Fee

On 13 February 2019, the PRA published Policy Statement (PS) 3/19, which sets out the PRA’s final policy on updating periodic fees and transaction fees for insurers. Notably PS3/19 implements a substantial increase in Part VII FSMA regulatory transaction fees. This change will come into effect on Friday 1 March 2019. The Part VII transaction

Posted in Regulatory and legislative updates, UK

UK: A pretty clean bill of health for the London Wholesale Broker Market

FCA publishes its Final Report for Wholesale Insurance Broker Market Study The FCA has published today its final Report in respect of its Market Study of the wholesale insurance broker market. The Market Study was launched in November 2017 with a focus on evaluating the level of competition in the sector in light of how

Posted in Regulatory and legislative updates, UK

UK: Transition without a transition period: EIOPA issues recommendations on continuity of insurance contracts following no-deal Brexit

On 19 February 2019, the European insurance regulator EIOPA released recommendations for the insurance sector, calling on national supervisory authorities (“NCAs“) in the EU27 to minimise the detriment to insurance policyholders and beneficiaries in case of a no-deal Brexit. Other states in the European Economic Area (“EEA“) can be expected to follow EIOPA’s recommendations. The

Posted in Regulatory and legislative updates, UK

UK: PRA publishes Consultation Paper 3/19 “Solvency II: Longevity risk transfers-simplification of pre-notification expectations”

On 5 February 2019, the Prudential Regulation Authority (PRA) published Consultation Paper (CP) 3/19, which proposes to update Supervisory Statement (SS) 18/16 “Solvency II: longevity risk transfers” to simplify the pre-notification requirements for longevity risk transfers and update the key risks the PRA considers arise from longevity risk transfers. Since Solvency II came into effect

Posted in Regulatory and legislative updates, UK

UK: Corporate Insurance Newsletter – January 2019

The Hogan Lovells’ Corporate Insurance Newsletter for January 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 FCA consultation on proposals

Posted in UK

The FCA consults on amendments to the SMCR: Excludes Head of Legal from the Senior Managers Regime and clarifies the scope of the Certification Regime

On 23 January 2019, the Financial Conduct Authority (FCA) published a consultation paper (CP19/4) on optimising the Senior Managers and Certification Regime (SMCR). This paper consults on a range of proposed amendments and clarifications to the regime. In particular, the FCA has proposed excluding the Head of Legal from the requirement to be approved as

Posted in Regulatory and legislative updates, UK

Webinar: Countdown to SMCR: What intermediaries need to know

The FCA has confirmed that the Senior Managers & Certification Regime (SMCR) will cover all regulated financial firms (including any insurance intermediaries in insurance groups) from 9 December 2019. The new regime will impact nearly all staff within financial services organisations, and firms need to consider how they should be preparing for the change ahead.