Tag Archives: Compliance

British regulator to focus more on protecting insurance policyholders

LONDON, March 20 (Reuters) – The Bank of England said it
will devote greater effort to ensuring more consistent
protection for those who would suffer most if their insurance
policies do not pay out as promised. The move follows a review by the central bank’s Independent Evaluation Office (IEO), published on Monday, which looked into
how the BoE’s supervisory arm, the Prudential Regulation Authority (PRA), ensures that policyholders are properly protected. PRA work on the issue had been “crowded out” by “live supervisory issues” and the need to implement European Union capital rules known as Solvency II by January 2016, the IEO said in its report. The PRA’s “articulation of its policyholder protection responsibilities appears to be unfinished business”, although there was no evidence that PRA supervisors were falling short of their duties, the IEO said.

BoE Deputy Governor and PRA Chief Executive, Sam Woods, said the PRA does not seek to protect all policyholders equally and will direct more resources to those who would suffer greater financial hardship if their policies do not pay out as promised.

Continue Reading “British regulator to focus more on protecting insurance policyholders” at Nasdaq News

NAIC asks Treasury secretary to review EU-US covered agreement

The National Association of Insurance Commissioners has asked the new Treasury secretary to clarify provisions of the covered agreement reached between the United States and the European Union in response to the bloc’s Solvency II directive. 

The covered agreement deal negotiated by the U.S. Department of the Treasury under the Obama administration and the Office of the U.S. Trade Representative, announced on Jan. 13, aims to address the fact that the European Commission has not deemed the United States an equivalent jurisdiction, per the EU’s Solvency II directive outlining a risk-based capital regime for insurers and reinsurers in Europe.

Continue Reading “NAIC asks Treasury secretary to review EU-US covered agreement” at Business Insurance News

Mutual LV= weighs merger or disposals as capital rules bite

One of Britain’s largest financial services mutuals has been involved in a secret hunt for a merger partner as a combination of tougher capital requirements and low interest rates hamper its profitability.

dddvtureSky News has learnt that LV=, which has nearly 6m UK customers across insurance, pensions and income protection products, has held aborted talks in recent months with Royal London, its fellow mutual, about a possible tie-up.

Those talks are said to have broken down amid a disagreement over the structure of a deal.

Continue Reading “Mutual LV= weighs merger or disposals as capital rules bite” at Sky News

Solvency II complicates captive strategies

The implementation of Solvency II in Europe has provided an additional risk management tool to owners of European captives, but at a cost, forcing risk managers to re-examine whether they are getting the best use out of their captives.confused-face-484x295

Solvency II, the European Union-wide risk-based capital rules for insurers and reinsurers, came into force in January 2016, and with it came new elements that have affected captives, for better or for worse.

“What we’re seeing as managers is an increased interest in strategic reviews and companies re-examining the captives to explore optimization opportunities and thus potentially…

Continue Reading “Solvency II complicates captive strategies ” at Business Insurance News

Buyouts more affordable but only for a handful of schemes

Buyouts have become more feasible as annuity pricing for non-pensioners has improved, but some experts say many schemes still have a long way to go before being able to afford a buyout or buy-in transaction.GettyImages-99978274.0

Research conducted by consultancy LCP shows that around 1m people had their defined benefit pension insured through a buy-in or buyout, as insurers started to find their feet following the introduction of Solvency II.

More recently, the Cancer Research UK Pension Scheme completed a £250m pensioner buy-in with Canada Life as part of the scheme’s plan to reduce risk, including an introduction last year to liability-driven investing.

Continue Reading “Buyouts more affordable but only for a handful of schemes” at Pensions Expert News

Deal or no deal? US divided on EU insurance agreement

On the face of it, the insurance covered agreement announced on January 13 should be everything Donald Trump detests. Signed in the final days of Barack Obama’s administration, when Trump had already been elected, the deal is between the US and the European Union – an institution the new president has repeatedly disparaged.1343

It will pre-empt the authority of individual US state legislators and require them to defer to EU regulation of European insurers in US markets.

On top of that, the agreement was negotiated by the Federal Insurance Office (FIO), an Obama-era creation Republican lawmakers are keen to abolish.

Continue Reading “Deal or no deal? US divided on EU insurance agreement” at Risk.net

Are insurance rules making people work longer?

here has been plenty of controversy surrounding the EU’s impact on UK insurance laws in recent weeks. Last week we woman-at-desk-cryingrevealed that uninsured drivers are to get compensation under a new EU rule; and now a report has outlined some even more significant consequences of the EU’s regulation.

Annuities have, reportedly, become more expensive as a result of Solvency II – and that means that people are needing to work longer before they are able to retire.

The statement was made as part of a hearing at the Treasury Select Committee on the impact of Solvency II as the industry looks to relax some areas of the regime post-Brexit.

Continue Reading “Are insurance rules making people work longer?” at Insurance Business News

 

When insurance pays dividends…..Distribution of long-term insurance profits

On 30 December 2016, the Companies Act 2006 (Distributions of Insurance Companies) Regulations 2016 (the “Regulations“) came into force. The Regulations apply to distributions made on or after that date by reference to accounts prepared for any period ending on or after 1 January 2016.

A copy of the Regulations is available here. The purpose of the Regulations is to define the mechanism by which long-term insurance companies are required to calculate amount of their distributable profits, following the implementation of certain changes arising from the Solvency II Directive.

Continued Reading “When insurance pays dividends….. Distribution of long-term insurance profits ” at Lexology

Don’t bank on Solvency II going away anytime soon

It has become a bit of a guessing game trying to figure out why the UK population voted for Brexit: was it immigration, money, sovereignty? 

However, there is anotheraid1947220-728px-get-rid-of-annoying-people-step-1-version-3 meme that has always appeared in the UK’s wrangles with Europe and that is the issue of what people like to call “red tape.”

The view goes that outside the European Union (EU), the UK will be able to jettison many of the rules that it has found inconvenient.

There’s no doubt that many, even those who did not support the Leave campaign, would not weep to see the back of some of the more overbearing EU financial regulations.

Continue Reading “Don’t bank on Solvency II going away anytime soon” at the Actuarial Post

Aviva plans further £10bn infrastructure injection

Aviva plans to more than treble its investments in infrastructure — to £14bn — over the next five years as it seeks to boost returns amid rock-bottom interest rates.

In an interview with the Financial Times, chief executive aviva_1482150aMark Wilson said the insurer would invest an extra £10bn in infrastructure around the world, on top of the £4bn it has invested so far.

Insurers are increasingly turning to investing in infrastructure as an alternative to low-yielding government and corporate bonds. The long-term nature of infrastructure projects such as roads, energy plants, schools and hospitals, which pay out over years and decades, are a good fit for insurers’ long-term liabilities.

Continue Reading “Aviva plans further £10bn infrastructure injection” at Financial Times News