Brexit – EIOPA publishes opinion on cross-border legacy business

An opinion published by EIOPA on 21 December 2017 raises concerns for UK insurers who have policyholders in EEA states other than the UK. This will include, for example, every life company with annuitants living in an EEA state*, perhaps because they moved from the UK on retirement. Insurers have been aware of issues raised by Brexit for … Read more

Delay to IDD start date/Guidance on UK approach to Brexit

Delay to IDD start date The EU Commission published draft legislation today (in the form of a proposed Directive and a proposed Delegated Regulation) to delay the IDD start date to 1 October 2018.  It has agreed to requests for a delay made by the European Parliament and a number of Member States despite expressing the … Read more

CAUSATION IN VALUERS’ NEGLIGENCE CLAIMS: RELIANCE ON EARLIER VALUATIONS

In a decision that will be of interest to  professional indemnity insurers as well as financial institutions and valuers, the Supreme Court has overturned a decision of the Court of Appeal and found in favour of the Defendant valuer in a professional negligence claim. The Supreme Court, in Tiuta International Ltd (in liquidation) v De … Read more

CYBER INSURANCE REQUIREMENTS IN COMMERCIAL CONTRACTS: GETTING IT RIGHT

Cyber incidents have the capacity to cause many different types of loss.  Insurance coverage exists for at least some aspects of cyber risks in the UK market.  However, given the range and diversity of risks that may arise, there are some key issues for businesses to consider when it comes to insurance against cyber risks … Read more

CONSTRUCTION OF EXCLUSIONS IN INSURANCE POLICIES

In Crowden and Crowden v QBE Insurance (Europe) Ltd [2017] EWHC 2597 (Comm) the Commercial Court found in favour of the Defendant insurer on the disputed construction of an “insolvency” exclusion in a professional indemnity insurance policy.  The case is a useful reminder of the approach which the English Courts take to the construction of … Read more

PRA proposes reforms to Solvency II regime

This article was first published on Thomson Reuters Regulatory Intelligence. The PRA has published the first of three consultation papers (CP21/17) on reforming the Solvency II regime. The consultation reflects PRA experience of working with Solvency II since its introduction in January 2016, while covering some of the improvements proposed by the ABI and discussed earlier … Read more

EXTENDING THE SENIOR MANAGERS AND CERTIFICATION REGIME TO INSURERS

The UK Senior Managers and Certification Regime (SMCR) is being extended to all financial services firms during 2018. PRA and FCA proposals applying to insurers build on the Senior Insurance Managers Regime (SIMR) although the transition to the SMCR is complicated by overlapping Solvency II requirements. We have prepared a guide for insurers to the … Read more

Brexit and cross-border insurance contracts

On 14 September 2017, the UK Parliament published a letter from Nicky Morgan, Chair of the Treasury Committee, to Philip Hammond, Chancellor of the Exchequer, on insurers’ ability, post-Brexit, to service insurance contracts sold under passporting arrangements with a duration that extends beyond 29 March 2019. Read more