FCA confirms final rules for new Consumer Duty and gives firms more time to comply

The FCA has published the final rules and guidance and accompanying non-Handbook guidance relating to the new Consumer Duty (the Duty). While the nature and scope of the Duty remains largely unchanged in most areas, the final rules and guidance contain some significant changes and clarifications relating to how the Duty will apply. Changes in … Read more

Prevention of Access clauses revisited

In Corbin & King v AXA Insurance Plc [2022] EWHC 409 (Comm), the High Court considered the scope of cover provided by a Prevention of Access clause for Covid-19 business interruption losses. While the Divisional Court in the Covid-19 business interruption test case (the FCA Test Case) had generally found that Prevention of Access clauses did not provide cover in these circumstances, the Court in this case was able to distinguish the clauses considered previously so that the wording in this case could be looked at afresh. The Court found that Covid-19 was a "danger" and that the Prevention of Access clause in the case provided localised cover but one which was capable of extending to disease. Adopting the Supreme Court's approach to causation in the FCA Test Case, the Prevention of Access clause did provide cover for the business interruption losses suffered as a result of the pandemic. Read more

Solvency II – 2022 reforms

The Brexit transition period ended more than a year ago, but insurance sector firms were insulated from the full impact of the UK's withdrawal from the EU during 2021. This is set to change in 2022. Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) concessions to firms affected by Brexit fall away from March 31, 2022 and most firms that are currently in the Temporary Permissions Regime will need to transition to full authorisation once notified of their "landing slot"... Read more

Insurance & Reinsurance Disputes Annual Review 2021

We are pleased to share with you our Insurance and Reinsurance Disputes Annual Review of 2021 which provides an overview and analysis of the key cases and developments affecting those engaged in or with contentious matters in the insurance and reinsurance market. Read more

Spire and RSA contest aggregation again

In Spire Healthcare Limited v Royal & Sun Alliance Insurance Limited [2022] EWCA Civ 17, the Court of Appeal overturned the High Court's decision and held that two groups of claims based on the negligent practice of the same surgeon should be aggregated. Irrespective of which group the claims fell into, the unifying factor between them was the surgeon's dishonest improper conduct. Read more

UK insurance regulation – looking forward to 2022

After a year of upheaval for the UK insurance sector in 2021, there seems little prospect of 2022 being any quieter. From a regulatory perspective, 2021 began with the end of the Brexit transition period.  And while firms operating in UK insurance markets have been insulated from the full impact of Brexit during 2021, this … Read more

AI, Big Data and insurance regulation

Artificial intelligence (AI) and the ever-increasing volume of data (Big Data) are transforming how financial services and products are delivered.  The insurance sector is keen to explore the opportunities that both provide for innovation and gains in efficiency and effectiveness. Indeed, European Insurance and Occupational Pensions Authority (EIOPA) suggested earlier this year that over 30% … Read more