9 months to go: How ready is the market for the Insurance Act 2015?

With just 9 months to go until the Insurance Act 2015 comes into force, how ready is the market? A recent survey carried out by Airmic among its members has revealed that: Only 53% of respondents believed they were prepared for the introduction of the Act; and 61% of respondents had not yet mapped out … Read more

A Guide to Solvency II

Insurers and reinsurers operating in European markets are facing change on an unprecedented scale. The main reason for this is Solvency II. Solvency II creates, for the first time, a fully harmonised regime for the prudential regulation of insurance businesses in Europe. It is designed to encourage the development of a properly integrated insurance market … Read more

PRA Decisions under Solvency II: How to appeal them

The PRA is in the course of deciding what approvals, waivers and modifications it should grant to firms as part of the process of bringing the Solvency II regime into force. These cover internal models, the matching adjustment and a variety of other issues. Where a firm applies for an approval, waiver or modification and the PRA … Read more

The PRA’s proposed new rules for insurers on pre-notification of capital instruments

The Prudential Regulation Authority is proposing to extend its rules about pre-issuance notification of capital (own funds) instruments. The proposed rules will apply to insurers and banks, but our briefing focuses on insurers. We suggest that the PRA proposals are ill-considered and in some respects may be open to legal challenge. We also criticise the … Read more

Revised IDD text published

The revised text of the Insurance Distribution Directive (IDD) was published in July, following agreement by the EU institutions under the “trilogue” process.  The IDD will replace the current Insurance Mediation Directive (IMD), which lays down the regulatory framework for the distribution of insurance products within and across Member States. Agreement of the latest text … Read more

FCA expresses concern over use of Delegated Authorities in General Insurance

A recent FCA report on the use of delegated authorities in general insurance serves as a warning to insurers, in particular, to look carefully at whether current arrangements are “fit for purpose”.  Where they are not, changes must be made.  The FCA can be expected to take action against firms whose mishandling of this type … Read more

Solvency II and Non-Executive Directors

The PRA and FCA have confirmed their approach to non-executive directors (NEDs) under the Senior Insurance Managers Regime (SIMR).  Some NEDs will have to be pre-approved by the regulator; others, so-called “Standard” NEDs, will not. Read more