Insurance reform

Insurers are facing regulatory pressure from all sides. On the one hand you have the looming capital requirements of Solvency II. And on the other a renewed focus on consumers conduct and culture by the Financial Conduct Authority (FCA). And with the Prudential Regulatory Authority (PRA) beginning to take an active interest in areas like ‘With Profits’ and ‘Recovery and Resolution Planning’ the regulatory landscape looks set to change immeasurably for insurers over the next few years.

Liquidity Coverage Ratio in the EU: getting ready to launch

This briefing summarises the key takeaways from the final EU LCR and considers the likely implications for banks.

NSFR – the final version

This briefing summarises the key takeaways from the regulatory text and considers some of the potential implications for EU financial institutions.

The UK Leverage Ratio: Running Ahead of the EU Requirement

UK banks effectively have to comply with two sets of leverage requirements: the CRD IV leverage ratio and the UK’s FPC leverage ratio. This briefing considers some of the potential implications for EU financial institutions.

Solvency II speeds up: approvals, matching adjustment and standard formula news

So what are the key messages and themes from the Solvency II conference held on October, where the PRA provided key information on what insurers must do to prepare for Solvency II in the months ahead? Our paper discusses the issues and the impact on your business as well as helping you understand what your next steps should be.

PRA requests assurance over Solvency II balance sheets

The PRA is requesting internal model and the larger standard formula firms to complete a two step review to provide the PRA with assurance over their Solvency II balance sheet, technical provisons and own funds. The first step is a ‘review and recommend’ report and the second step is an external ‘reasonable assurance opinion’.

Solvency II implementation in the UK takes shape

This hot topic summarises HMT’s and PRA’s latest proposals for the implementation of Solvency II in the UK. It includes an initial set of national specific reporting together with details on the regulation of UK branches of third country insurers and the application of both matching and volatility adjustments.

Hot topic: Insurance approach to supervision one year on

This Hot Topic describes the updated approach to insurance supervision by Prudential Regulation Authority and Financial Conduct Authority.

Solvency II Pillar 3 - the top three challenges for insurers

During this webcast our panel of experts discuss the key priorities for Solvency II reporting in 2015.

PRA’s expectations for general insurers’ technical provisions and internal models under Solvency II

The PRA released a supervisory statement on 25 April 2014 which sets out its expectations in relation to the calculation of technical provisions and the use of internal models by general insurers under Solvency II.

The future of retirement: PwC Consumer survey on the future for the UK annuities market

The UK annuities market could decline by up to 75% after the recently announced changes to compulsory annuity purchase come into effect, according to PwC analysis supported by a new consumer survey. Find out more.

Way forward for mutuals seeking life after with-profits?

The FCA and PRA publishes a policy and supervisory statement allowing with-profits mutuals to apply for a rule modification so they can establish a mutual members’ fund.

Annuity reform, key implications for the insurance industry

One of the biggest changes to the UK pension is that savers are no longer compelled to purchase annuities upon retirement. Find out what these significant changes mean for the industry and what challenges and opportunities lay ahead.

Consultation on the Association of British Insurers (ABI) guide to unit-linked funds following the Financial Conduct Authority (FCA) thematic review

Following the FCA thematic review, the ABI is consulting on its updated guide to good practice for unit-linked funds.

Banking and pay: regulation and Code Staff

Now that UK regulators have issued the final banking regulations around remuneration, Jon Terry and Tom Gosling look at the people working for financial services organisations who are likely to be most affected by the rules, the so-called ‘Code Staff’ or material risk takers.

The Financial Conduct Authority (FCA) publishes results of annuities thematic review

Following a detailed review of the annuities market, the FCA has found that 80% of consumers who purchase their annuity from their existing provider could get a better deal if they shopped around.

Financial Services Consumer Panel (FSCP) calls for structural reform of the failing annuity market

The Financial Services Consumer Panel (FSCP) released the findings of its research into the consumer experience of purchasing an annuity.

Solvency II requirements published

The publication of the Omnibus II text provides much needed clarity on some of the key requirements of the Solvency II regime.

Agreement reached on Long Term Guarantee package

The Trilogue has reached agreement on the package of measures to be used in the valuation of long-term business (‘the LTG package’) under Solvency II.

Finality on Solvency II timetable

Solvency II will be effective from 1 Jan 2016. We believe firms have plenty to do on Pillar 1, Pillar 2 and Pillar 3 to get ready.

Prudential Regulation Authority (PRA) clarifies expectations for Solvency II preparation in the UK

On 21 October 2013 the PRA published CP9/13 Solvency II: applying EIOPA’s preparatory guidelines to PRA-authorised firms. The PRA has confirmed that it expects all UK insurers and insurance groups to implement the substantive provisions of the guidelines which apply from 1 January 2014.

The Financial Conduct Authority (FCA) and the focus on product governance

This document provides information on how to effectively manage product governance and the product lifecycle.

Publication of final EIOPA guidelines signals renewed effort towards Solvency II finalisation

The publication of EIOPA’s final guidelines for the preparation of Solvency II should reinvigorate insurers’ Solvency II preparations. These guidelines are a key milestone towards Solvency II’s implementation.

Financial Stability Board (FSB) consults on principles for an effective risk appetite framework

In our paper, 'FSB consults on principles for an effective risk appetite framework’ we consider how this is intended to be a cornerstone of the G-SII regime.

Solvency II matching adjustment - an opportunity for general insurers with PPO claims...

EIOPA published the results of its Long-Term Guarantee Assessment (‘LTGA’) on 14th June 2013. This proposed extending the scope of the ‘classical matching adjustment’ to non-life liabilities, provided these comply with the qualifying criteria.

Insurance Banana Skins Survey 2013 - helping you to make better business decisions

Regulation may still dominate the concerns of the UK insurer, however our panel also discuss the broader strategic challenges facing the industry.

Global Systemically Important Insurers (G-SII) – a new era of global insurance regulation

The Financial Stability Board (FSB) and the International Association of Insurance Supervisors (IAIS) published a list of nine Global Systemically Important Insurers (G-SII). Our paper summarise the policy measures that apply to G-SIIs and the assessment methodology used by the IAIS.

Overview of IASB’s re-exposed insurance contracts standards

Our webcast discusses the re-exposure of the insurance contracts standard issued by the IASB on 20 June 2013. This comprehensive proposal will fundamentally change accounting standards for insurers and other entities that issue insurance contracts.

Financial Conduct Authority (FCA) publishes findings of first thematic review

On 7 June 2013 the FCA published its report on the thematic review of Motor Legal Expenses Insurance (“MLEI).

European Insurance and Occupational Pensions Authority (EIOPA) publishes findings on long term assessment

This Hot Topic describes the findings from the Long-Term Guarantee Assessment (LTGA) and recommendations for the valuation of long-term products under Solvency II.

PRA updates on Solvency II developments

Julian Adams (Deputy Head Prudential Regulatory Authority (PRA) and Executive Director Insurance) sent a Solvency II update letter on 23 May 2013, to all firms impacted by Solvency II, updating them on the PRA’s Solvency II work and its expectations of firms.

Financial Conduct Authority (FCA) advances Thematic Reviews into the Life Sector

Over the course of 2013 the Financial Conduct Authority (FCA) are conducting a thematic review into competition and pricing within the UK annuity market. The FCA has yet to release details about the structure of the review, although the regulator has given hints as to its purpose and style. It is expected to last until at least the autumn and will be performed in two phases.

European Insurance and Occupational Pensions Authority (EIOPA) consults on draft interim measures for Solvency II preparation

Our paper provides an overview of the content and process surrounding the European Insurance and Occupational Pensions Authority (EIOPA) draft guidelines and potential next steps for companies. The draft guidelines are commonly known in the industry as Interim Measures for Solvency II.

Complaining about the new regulators

The BoE and the FSA jointly published PS13/7 Complaints against the regulators on 25 March 2013. PS13/7 outlines the procedure for making complaints against the PRA and the FCA.