Solvency II trilogue discussions conclude – so what happens now?

Earlier today, it was announced that yesterday’s trilogue discussions on the Omnibus II Directive (Omnibus II) had finished in agreement.  The announcement puts to rest recent uncertainty about the future of the Solvency II Directive and sets in train a timetable bringing the new regime into force from the beginning of 2016. Of more immediate concern, a … Read more

PRA proposes clampdown on solvent schemes

The PRA has put down a clear marker that policyholder interests must come first when insurers are looking for ways to return capital to shareholders.  It is particularly concerned that schemes of arrangement used by solvent insurers to achieve an early exit from the market can expose policyholders to a forced commutation of their cover … Read more

Solvency II – “an object lesson in how not to make law”?

Andrew Tyrie MP (Chairman of the Treasury Committee) recently described Solvency II as “an object lesson in how not to make law”.  In similar vein, Andrew Bailey of the PRA has said that Solvency II is “lost in detail” and “vastly expensive”. Draft Guidelines issued by EIOPA in March aim to restore credibility to the … Read more

PRA changes statement on solvent schemes, but remains wary

The PRA has recognised opposition to its proposed clampdown on solvent schemes in a Supervisory Statement (see SS3/14) published on 25 April 2014.  The PRA’s previous language, describing its dislike of solvent insurers’ use of schemes of arrangement to achieve an early exit from the market, has been softened in response to criticism that its … Read more

Supreme Court confirms extended warranties can be regulated insurance products

The Supreme Court has confirmed that extended warranties on consumer goods can be “contracts of insurance” falling under the regulation of the Financial Services Authority (“FSA”). In Re Digital Satellite Warranty Cover Limited [2013] UKSC 7, the court found that extended warranties for the repair and replacement of satellite television equipment were regulated insurance contracts for … Read more