Emma RadmoreThe FCA has completed a multi-firm review of how life insurers handle bereaved customers. On the whole, it found they provide good service, but says they can improve on the time they take to settle claims – while...
Category - Life Insurance
FCA to investigate pure protection market
The FCA is concerned that competition is not working well in the pure protection sector and is to start a market study into how pure protection products are sold. These products are mainly sold through intermediaries...
PRA publishes Life Insurance Stress Test approach
The PRA has published a set of documents setting out its approach to the 2025 Life Insurance Stress Test. The test will apply to UK life insurers active in the bulk purchase annuity markets and will contain a core...
FCA updates on implementing Consumer Duty for closed products
The FCA has written to firms in the following sectors on implementing the Consumer Duty for closed products and services by 31 July 2024: Asset management; Consumer finance; Consumer investments; Life insurance; Retail...
PRA speaks on developments in bulk purchase annuities sector
Lisa Leaman (Head of Division, London Markets at the PRA) has delivered a speech on developments in the bulk purchase annuities (BPA) sector. Highlights include: Solvency II reforms to the matching adjustment (MA) –...
PRA consults on funded reinsurance
PRA is consulting on its proposed expectations when life insurers enter into or hold funded reinsurance arrangements as cedants. It feels it needs to set out these expectations to advance its primary objectives by...
FCA review: terminal illness benefits in life insurance products
FCA has published the findings from its review of terminal illness benefits within life insurance protection products. A terminal illness benefit provides an early lump sum pay-out of a life insurance policy where the...
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...
FCA publishes life insurance supervisory letter
FCA has published its supervisory strategy for life insurers. The letter updates its communication from December 2018 and looks at: how the 2018 strategy has progressed; FCA’s updated view of the key harm risks;...
Emma RadmorePRA sets scope of 2022 insurance stress test
The PRA has written to the largest PRA-regulated life and general insurers to set out the high-level scope for the 2022 Insurance Stress Test (IST) exercise. For life insurers, the IST will focus primarily on economic...
FCA consults on regulated firm climate disclosures
FCA is consulting on enhancing climate-related disclosures by asset managers, life insurers and regulated pension providers. Following on from the introduction of disclosure rules for the most prominent listed companies...
FCA publishes life insurance outsourcing review
FCA has published the findings from its review into outsourcing in the life insurance sector. The review stemmed from FCA’s awareness that the sector relies heavily on outsourcing and third party providers, and...
Up next from FCA
FCA’s latest Policy Development Update heralds the following publications before the end of the year: consultation on investment platforms market study remedies; policy statement on OPBAS fees; consultation on...
FCA announces next steps for unit-linked funds
FCA has published its findings and next steps on its review of governance practices covering unit-linked funds. It notes that its Asset Management Market Study found asset managers were not good enough at considering...
FIN. TeamFCA publishes quarterly consultation
FCA’s latest quarterly consultation covers a number of minor changes to the rules that will be made only if there is a no-deal Brexit on 31 October, and also other miscellaneous amendments including: minor...
FCA fines Standard Life for non-advised sales failings
FCA has fined Standard Life Assurance Limited £30,792,500. The fine relates to non-advised sales of annuities, and sales practices over nearly 8 years. Although the sales were non-advised, FCA found that the firm...
FCA makes shareholder engagement and transparency rules
FCA has made new rules to improve shareholder engagement and increase transparency around stewardship. The new requirements take effect from 10 June. FCA will require: asset managers and life insurers to publish their...
With-profits firms should review consumer harm risks
FCA has published its thematic review of firms’ practices in key areas of the with-profits market that FCA had identified as presenting the highest potential for customer harm. The review focused on: investment...
UK insurance stress test feedback request
As the PRA prepares to conduct a stress test exercise, it has written to firms and industry participants to ask for feedback. The exercise will involve the largest life and general insurers, and run from Monday 1 July...
EIOPA set out conduct risk framework for product lifecycle
EIOPA has published a framework that sets out what drives conduct risk and how to assess it throughout a product life cycle. It looks at: business model and management risks manufacturing risks delivery risks and...
UK / Switzerland deal reached on insurance
At the World Economic Forum in Davos, the Swiss and UK governments signed a deal to allow both countries to trade freely within the insurance sector post-Brexit. The agreement will come into force when the current EU...
ESMA briefs on suitability
ESMA has updated its supervisory briefing for regulators on the suitability requirements under MiFID 2. The briefing covers: when a suitability assessment is needed; information to clients on the assessment; getting...
AFME publishes guidance on COBS
AFME has published guidance on financial analysts’ interaction with representatives of private companies and their financial advisers under the revised rules in COBS 12.2.21 which took effect in July. The change...