Laura WilesFCA has published a suite of portfolio letters for the insurance markets, off the back of its value measures data report, but covering its wider supervisory priorities. The letters note the importance of the insurance...
Category - Insurance
Emma Radmore
Vida FatemiPRA speaks on Solvency UK
Gareth Truran of PRA has spoken on the “Solvency UK” initiative which will replace Solvency II. He said PRA is maintaining the momentum it needs to implement the reforms in 2024. He said the proposals PRA...
Q1 complaints stats show increase in motor and building issues
FOS has published its latest quarterly complaints data. The data covers April – June 2023. All the most complained-about products have seen year on year increases, and the most complained about product remains...
PRA updates on insurers in financial difficulties
PRA has published feedback on its consultation on dealing with insurers in financial difficulties and has published amended, updated and new Rulebook materials. There is a new Part of the rules on Insurers in Financial...
FCA consults on the future of the IDD
FCA is consulting on a proposal to transfer parts of the IDD that are currently in legislation into its rules, as part of the Future Regulatory Framework following Brexit. Treasury has announced its plan to repeal the...
FCA announces Direct Line pricing review
Direct Line Group has agreed to carry out a review after it found it had charged some existing home and motor customers more for their renewal than would have been charged to new customers. The review will identify all...
Lucy HadrillFCA issues customer guidance after broker enters administration
FCA has issued Q&A for customers after Verex Insurance Services, a firm which sold motor insurance products, entered administration alongside one of its ARs . The guidance explains to concerned customers that...
HM Treasury publishes response to consultation on Introducing an Insurer Resolution Regime
HM Treasury has published its response to the feedback received from its January 2023 consultation paper titled “Introducing an Insurer Resolution Regime”. The consultation sought feedback on proposals to...
Jasmine ZacherGovernment consults on financial product cold call ban
The Government is consulting on how to ban cold calls offering any financial products. It says that once the ban is in force, it will be clear to anyone receiving a call for a financial product that the call is a scam...
Consumer Duty takes effect
The Consumer Duty has taken effect for all on-sale products. FCA has reminded consumers of the protections it gives them.
Read our summary of what FCA is expecting from firms.
FCA makes new rules
FCA’s latest Handbook Notice confirms: changes to ICOBS to reduce the impact of financial difficulties by enabling customers to maintain an appropriate level of insurance; amendments to FCA’s Glossary and...
Financial Lives conclusions make uncomfortable reading
FCA has published the results of its latest Financial Lives survey, which it says serve to highlight the importance of the Consumer Duty. During the year to May 2022: less than half of UK adults had confidence in the UK...
PRA releases statement on the recalculation of TMTP
The PRA has released its statement to insurance firms inviting them to recalculate the Transitional Measure on Technical Provisions (TMTP). In accordance with Supervisory Statement (SS) 6/16 ‘Maintenance of the...
IAIS publishes mid-year update on global insurance market
The International Association of Insurance Supervisors (IAIS) has published its Global Insurance Market Report: Mid Year Update, which provides a mid-year preview of its 2023 Global Monitoring Exercise (GME) results...
Government publishes Smarter Regulatory Framework delivery plan
Treasury has published a delivery plan setting out how the Government will deliver a Smarter Regulatory Framework (SRF) tailored to the UK now that FSMA 2023 has repealed retained EU law for financial services. As part...
Ombudsman News updates FOS initiatives
The latest edition of Ombudsman News highlights: what FOS is doing to prepare for the Consumer Duty; the annual complaints data from 2022/3; its items on hybrid scams and escape of water in unoccupied properties...
FCA highlights good and poor practice in general insurance market for customers in financial difficulty
FCA has published examples of good and poor practice arising out of its review of how the general insurance market supports customers in financial difficulty and handles claims. For customers whose policies had been...
PRA sets fees and levies for 2023/24
Following its April consultation, PRA has published a policy statement confirming the fees and levies payable for the 2023/24 fee year. Respondents welcomed the reduction year-on-year to the Annual Funding Requirement...
PRA consults on adapting Solvency II to UK market
PRA is consulting on its review of Solvency II to adapt the framework to the UK insurance market. The significant reforms proposed build on the Government’s response to its own Solvency II review consultation, and...
FSM Bill gets Royal Assent
As expected, the Financial Services and Markets Act 2023 got Royal Assent on 29 June. Heralding it, Treasury described its key features as: bringing the ability to tailor financial services regulation to fit UK markets...
FSM Bill completes Parliamentary process
The FSM Bill returned to the Lords for consideration of the few amendments the Commons had made. These were agreed, and so the Bill has completed its Parliamentary passage and now awaits Royal Assent. It is expected to...
PRA publishes insights from thematic review addressing insurance claims inflation
The PRA has published its follow up letter to Chief Actuaries of general insurance firms and Lloyd’s Managing Agents regulated by the PRA. The letter provides insights from the PRA’s thematic review of...
FSMB back in Commons on 26 June
The FSMB will return to the Commons on 26 June, for the House to consider the version as amended in the Lords.
Government publishes draft Solvency II reform regulations
In anticipation of the passing of the FSM Bill, Treasury has published drafts of two Statutory Instruments designed to make the current Solvency II regime more tailored, clearer and simpler. The Government has stated...
BoE launches system-wide exploratory scenario
BoE has launched its first system-wide exploratory scenario exercise. The exercise will include banks, insurers, CCPs and a variety of funds and will look to see how all these market players behave in stressed market...
PRA letter to CROs provides feedback on funded reinsurance arrangements
The PRA has published a Letter from Charlotte Gerken, Executive Director, Insurance Supervision, to Chief Risk Officers (CROs) of life insurance firms sharing insights and feedback on the PRA’s preliminary thematic...
FOS publishes annual complaint data stats
FOS has published the annual complaints data for the 2022/23 financial year and commented on the common themes. Of the most complained about products current accounts had a 40% uphold rate; credit cards 34%...
FOS blogs on escape of water claims
A blog from FOS looks at the increase it has seen in queries from insurers about “escape of water” claims in unoccupied properties. FOS notes that key points to check are: how the policy describes...
FCA updates on changes for credit unions
FCA has published a new website page on the changes the FSM Bill proposes for credit unions. It highlights to credit unions that, if the changes come into law, any firm wanting to take advantage of them will need to...
ASA rejects complaint on Over 50s ad
The ASA has not upheld complaints about 2 advertisements for Cover Today over 50s insurance. The ads both featured statements that Cover Today is “the only over 50s life insurer with no waiting period, unlike...
FSMB: Lords report stage scheduled for 6 June
The report stage in the Lords for the FSM Bill will start on 6 June. There is no set length of time for it to last, although further sittings have already been scheduled for 8 and 13 June.
FOS publishes discrimination complaints guidance
FOS has published an information page for firms dealing with complaints relating to discrimination. Complaints include: that financial services providers have not made reasonable adjustments to take account of a...
PRA publishes its 2023/24 Business Plan
The PRA Business Plan sets out PRA’s strategy, workplan, and budget for 2023/24. It will be delivered through the following strategic goals: Maintain and build on the safety and soundness of the banking and insurance...
PRA speech: moderation in the Bulk Purchase Annuity market
Charlotte Gerken, PRA Executive Director – Insurance, has delivered a speech on trends in the Bulk Purchase Annuity (BPA) market at the 20th Annual Conference on Bulk Annuities. The speech noted that pension...
FCA publishes aggregate complaints data for H2 2022
FCA has published its overview of complaints in the second half of 2022. Overall it found: a decrease of 6% in complaints compared to H1, largely due to decreases in complaints about banking and credit cards, insurance...
PRA Occasional Consultation April 2023
PRA’s latest Occasional Consultation Paper covers minor proposed changes to: PRA’s approach to publishing Solvency II technical information group supervision in relation to Solvency II firms and Lloyds and...
Treasury Committee publishes exchange of letters with FCA
The Treasury Committee has published its request to FCA to provide it with information on key elements of its regulation following Nikhil Rathi’s appearance before it in early March, and FCA’s response. The...
FCA consults on multi-occupancy leasehold insurance reforms
FCA has published a set of proposals designed to improve transparency in the multi-occupancy leasehold buildings insurance market. It plans to define leaseholders as “customers” of buildings insurance, and...
Court considers time limits for PPI referrals
In the case of the Official Receiver and Shop Direct Finance Company Limited the Court of Appeal considered the time limit for referring complaints to FOS in respect of missold PPI, in particular where a person to whom...
FCA publishes BI insurance test case insurance claims data
The FCA has published its latest insurer claims data (as of 6 March 2023) from all affected insurers on the progress of their non-damage business interruption (BI) insurance claims. The FCA has been collecting data on...
FCA publishes Notice of Undertaking by Policy Excess Insure Limited T/A Nova Direct
Policy Excess Insure Limited trading as Nova Direct (PEI) has given an undertaking, under the Consumer Rights Act 2015 (the CRA), making changes in relation to three terms in its insurer broker contract (for the sale of...
FCA makes new rules
FCA’s latest Handbook Notice confirms: changes to the FSCS MELL effective from 1 April; amendments to Consumer Duty rules: these changes result from questions FCA has received. The key clarifications confirm how...
PRA speaks on UK insurance sector risks
Shoib Khan, the PRA’s director for insurance supervision, has given a speech on the current risks facing the UK insurance sector. He highlighted that insurers should examine beyond the structure of their models...
FOS publishes H2 2022 complaints data
FOS has published data on complaints received between July and December 2022. It saw a slight increase in complaints over the first half of the year, and received nearly 80,000 new complaints. It upheld 34% of...
BoE reports on climate risks and regulatory capital frameworks
The BoE has set out its latest thinking on climate-related risks and regulatory capital frameworks. The report includes updates on: capability and regime gaps; capitalisation timelines; and areas for future research and...
FCA publishes its Perimeter Report 2023
The FCA has published its latest annual Perimeter Report. It highlights some of the challenges faced within the current financial services regulatory perimeter and signposts desired future action the FCA would like to...
BoE reveals 20% higher chance of insurance firms collapsing due to Solvency II reforms
The BoE has published a letter to the Treasury Committee revealing that Government proposals to overhaul Solvency II rules to reduce how much capital life insurers must hold to protect themselves against bankruptcy...
Economic Secretary speaks at ABI’s Annual Conference
Andrew Griffith MP, the Economic Secretary to the Treasury, has delivered his keynote speech at the Association of British Insurers’ Annual Conference highlighting government action which aims to promote growth...
PRA speaks on ‘Fundamental Spreads’ – next steps for Solvency II reforms
Sam Woods, Deputy Governor for Prudential Regulation and PRA CEO, has delivered his speech ‘Fundamental Spreads’, highlighting the next steps for reforming the Solvency II insurance regulations in the UK. Mr...
LMA launches CUO Committee for market-wide strategic initiatives
The Lloyd’s Market Association (LMA) has announced its launch of the Chief Underwriting Officers’ (CUO) Committee. The committee will portray managing agents’ perspectives on Lloyd’s strategic initiatives...
ABI and Fairer Finance announce “guide to clear communications”
ABI has worked with Fairer Finance to produce a guide to clear communications covering all aspects of how insurers communicate with their customers. Key recommendations include: sentences should be under 29 words;...
PRA consults on dealing with insurers in financial difficulty
The PRA has published its consultation paper (CP3/23) and appendices seeking consultation on its proposed rules and policy changes introduced by the Financial Service and Markets Bill 2022-23 (FSM Bill) to the Financial...
FCA publishes Consumer Duty sector letters
FCA has published a set of Dear CEO letters it has sent to several sectors on preparation for the Consumer Duty. It has so far written to: asset management, custody and fund services and alternatives; consumer...
Levelling Up Secretary calls for urgent multi-occupation insurance action
Michael Gove has written to FCA in response to its review on multi-occupation building insurance. He calls on both Treasury and FCA to take urgent action to improve both the cost and availability of insurance for multi...
Sub-Committee publishes regulatory correspondence
The Treasury Sub-Committee on financial services regulations has published correspondence it has had with regulators on: sustainable investments: FCA has informed it that it thinks one third of funds that currently...
FSM Bill Grand Committee stage starts
The first day of the Lords Grand Committee hearing on the FSM Bill took place on 25 January. There are now 6 dates scheduled in total, with sittings taking place now on 30 January, then 1, 6, 8 and 20 February. 195...
LMA updates on ESG Insights for Insurers
The Lloyd’s Market Association (LMA) has highlighted the importance of ESG data for insurers and the role it will play in underwriting approaches to sustainability strategy. Links to these insights and the report...
PRA publishes results of Insurance Stress Test 2022
The PRA has published its Insurance Stress Test 2022 (IST 2022) feedback (23 January 2023). The letter sets out the results of the IST 2022 which was launched in May 2022, findings on sector resilience, and provides...
FCA releases consultation paper on insurance guidance for the support of customers in financial difficulty (CP23/1)
The FCA has released its consultation paper on insurance guidance for the support of customers in financial difficulty (CP23/1). The FCA views that the number of customers in financial difficulty has increased in recent...
BoE (PRA) publishes Dear CEO Letters – 2023 Priorities for Insurance supervision, International Banks active in the UK, and UK Deposit Takers Supervision
On 10 January 2023, the BoE (PRA) published the following Dear CEO letters outlining its key supervisory priorities for insurers, international banks active in the UK, and UK Deposit Takers in 2023: Insurance...
The Edinburgh reforms – and more
See our article, summarising various FIN posts over the past week on the state of play of the FSM Bill and the Edinburgh reforms.
FCA writes to life insurers on cost of living help
FCA has written a Dear CEO letter to the life insurance sector setting out its expectations on firms during the cost of living crisis. It reminds firms: to give protection insurance customers appropriate information at...
FCA seeks views on retail disclosures
Following on from the Treasury consultation on PRIIPs information requirements, FCA is now seeking views on when and in what format information should be delivered to consumers in a way that ensures what is provided is...
Treasury publishes FS law Brexit strategy
Treasury has published a Policy Paper setting out how it intends to deal with retained EU law in the financial regulatory sector. The Policy Paper says that the FSMA model, with the operationally dependent regulators...
“Edinburgh” reforms highlight ring-fencing, CCA and post-Brexit changes
The Chancellor has announced a set of so called “Edinburgh reforms” to the financial services regulatory framework. At an industry roundtable, he will set out plans to repeal and replace “hundreds of...
FSM Bill – Lords dates announced
The FSM Bill as amended after its passage through the Commons has now had its first (routine) reading in the Lords. The Lords’ second reading has been set for 10 January 2023.
New AR rules take effect
The FCA’s reforms to the appointed representative regime have come into force and the FCA has published a new webpage setting out information on the s165 requests it will be sending to principal firms. As a...
EIOPA publishes discussion paper on assessing insurers’ sustainability
EIOPA has published a Discussion Paper (DP) on assessing the prudential treatment of insurers’ sustainable assets and activities. Given that insurance underwriting and investment activities can be profoundly...
Nicola RadfordFCA publishes GI pricing review attestation results
FCA has published its findings from its multi-firm review of 18 insurers and 48 intermediaries that assessed how firms satisfied themselves that they do not apply a loyalty penalty to motor and home insurance customers...
FCA quarterly consultation clarifies Consumer Duty application
FCA’s Quarterly Consultation proposes minor changes to various parts of its rules, including providing clarification on the Consumer Duty. The paper proposes: amendment to TC to include The London Institute of...
FCA warns insurers against undervaluation
FCA has warned insurance firms that they must take care not to undervalue items, specifically but not only cars, when settling insurance claims. It has become aware that claims staff are often offering a lower price...
FSM Bill report stage on 7 December
The FSM Bill is to have its report stage and third reading in Parliament on 7 December, after receiving the Bill with amendments from the Public Bills Committee. It is possible for Parliament to make amendments at...
FCA publishes GI value measures data
FCA has published its first set of value measures data for a range of general insurance products, for H2 2021. It highlights: claims costs as a proportion of premium ranging from just over 5% for GAP insurance sold as...
ABI publishes strategy to improve diversity in insurance sector
The Association of British Insurers (ABI) has published an ambitious Blueprint which sets out a multi-year strategy to improve diversity, equality and inclusion (DEI) across the insurance industry. The Blueprint splits...
CMA writes to Barclays on PPI breaches
The CMA has written a public letter to Barclays because the bank failed to send reminders to up to 1,306 customers about their payment protection insurance (PPI) policies. This meant a breach of Article 4 of the Payment...
Principals to respond to AR requests by 28 February 2023
Following confirmation that it will be sending principal firms that have ARs a s165 information request in December, the FCA has updated its webpage to let firms know that they should expect to receive this via Connect...
TPT launches ‘gold standard’ for climate transition plans
The Transition Plan Taskforce (TPT) has published its Disclosure Framework and accompanying Implementation Guidance. The Framework makes recommendations for companies and financial institutions to develop gold-standard...
PRA consults on Solvency II reporting requirements
The PRA has published a consultation paper setting out its plans to streamline various Solvency II reporting and disclosure requirements for insurers. To achieve this, PRA intends to revoke retained EU Technical...
FOS publishes latest complaints data
The latest quarterly complaints data from FOS reveals: 38,470 new complaints from July – September 2022 (Q2), an increase of 3,000 on Q1; nearly 6,000 complaints about current accounts (up by 500) nearly 3,400...
FOS blog looks at holiday insurance complaints
FOS has published a blog looking at complaints involving holiday cancellations because of positive or delayed Covid test results. It has suggested some tactics insurers might apply which may prevent complaints. These...
Andrew Griffith letters on FSMB
The House of Commons has published a letter from Andrew Griffith on the FSM Bill dated 10 October to Tulip Siddiq and Abena Oppong-Asare. The letter followed the second reading of the Bill and addresses: the...
FCA publishes H1 complaints data
FCA has published the complaints data for H1 2022, which shows: a 1% increase in complaints from the previous period (1.88m complaints) the biggest increase was in the decumulation and pensions group (15%) with a 5%...
Emma RadmorePRA fines MS Amlin for governance failings
PRA has fined MS Amlin Underwriting Limited nearly £10m for failings in its governance, controls and risk management. The failings lasted for over 5 years and related to the governance and oversight of underwriting...
LMA publishes managing agent Consumer Duty guidance
The LMA has published guidance for managing agents on the implementation of the Consumer Duty. It notes (as FCA did in its insurance-focussed webinar) that the insurance industry should be well prepared for the...
FSMB Committee stage timetable published
Following the announcement that the Committee stage in the Commons will begin on 19 October, a timetable for the sessions has now been published. Key witnesses scheduled to appear on that day include BoE, PRA, FCA and...
FSMB Committee stage scheduled for 19 October
An update to the Parliament website shows the Committee stage for the Financial Services and Markets Bill will start on 19 October. After the line by line debate is complete, the Bill will be republished for report...
FCA launches new webpage on Consumer Duty
The FCA has published a new webpage containing information on the Consumer Duty. The webpage, which will be kept up to date, currently contains guidance for firms on: implementation plans and the FCA’s...
FCA publishes review of BI insurance claims handling
FCA has published a review of how insurers have been handling claims under business interruption insurance policies. It has welcomed insurers making quick interim payments and proactively communicating with...
LMA launches Charter to support improvement in market culture
The Lloyds Market Association has launched its Charter which was unanimously approved by the LMA Board in July 2022. The Charter is aligned with the LMA’s five values – inclusive, trusted, passionate, bold and...
Harshil PatelFCA speech: Consumer Duty
Sheldon Mills (Executive Director, Consumers and Competition at the FCA) has delivered a speech on what firms and customers can expect from the Consumer Duty. Mr Mills stressed that, whilst the Duty is not yet in force...
FCA warns insurers about cover during cost of living crisis
FCA has written to the CEOs of insurers and brokers following concerns that customers may look to cut back on the insurance they hold as the cost of living crisis continues. FCA wants to be sure that customers are...
Consumer Duty: FCA update and events
The FCA has published a new webpage on Consumer Duty, which outs out the timeline and key milestones for implementation and contains links to register for FCA webinars and email updates. You can also register to attend...
FCA updates on insurance pricing
FCA has updated its website on general insurance pricing practices, to include information on application of PROD to products distributed through distributors based outside the UK and intended for non-UK customers. FCA...
FCA publishes insurance broker wind-down plan study
FCA has published the results of its review of how well general insurance brokers assess the adequacy of their liquidity for orderly wind-down. During early 2022, it conducted a review of 10 insurance brokers, mainly...
FOS publishes H1 complaints data
FOS has published its regular half-yearly update on complaints data relating to individual businesses. 212 businesses feature, with an average uphold rate of 37% (the same as the previous period). FOS has also reported...
FCA suggests changes to multi-occupancy building insurance market
Following a request from the then Secretary of State for Levelling-up, Housing and Communities in January, FCA (working with the CMA) has published its recommendations and potential remedies to give leaseholders better...
FOS publishes latest complaints data
FOS has published its latest quarterly data on complaints in relation to financial products. The data covers the period of April to June 2022, and can be accessed in full as a spreadsheet. Over the period, the average...
Consumer Duty: building an implementation plan
UK Finance has outlined four key elements firms should be focussing on when building their Consumer Duty implementation plans. These are: definition of the target end state as an input to the gap assessment – to define...
FCA to send AR requests in December
FCA has confirmed it will be sending principal firms that have appointed representatives a s165 information request in December. The request (which FCA had previously said it would issue later this year) will seek...
FMLC reports on RAO “similar contracts of guarantee”
The Financial Markets Law Committee has published a report looking at the wording in the RAO which extends the meaning of the term “contracts of insurance” also to include arrangements which the FMLC says...
PRA makes new rules
PRA has made changes to its rules, supervisory statements, statements of policy and technical standards following its Occasional consultation 3/22. The changes affect: Solvency II firms: in respect of the Statement of...
Read our article on the new Consumer Duty
Following up on our headline post, we have written an article giving more detail on the Consumer Duty and highlighting some of the key changes since the FCA’s second consultation paper. The implementation deadline...
FCA confirms new AR rules
FCA has confirmed its new rules to make principal firms more responsible for their ARs. The package of rules, which will take effect from 8 December, will: require principals to notify FCA of future AR appointments 30...