30 October 2024
Insurers and climate-related disclosures
Climate-related disclosures are now mandatory for many insurers, with this comes the requirement to produce high-quality reports.
Insurance insights
Read our latest insurance insights.
14 October 2024
Liquidity risk management
The business models of some UK insurers result in elevated exposure to liquidity risk. Despite this, management of liquidity risk does not receive as much attention or investment as capital and other risks.
8 October 2024
UK FS regulatory affairs newsletter – Q3 2024
In the third quarter of 2024, our experts commented on a number of announced regulatory developments. Our quarterly FS regulatory newsletter is a comprehensive overview of topics relevant to firms that operate in the UK across all Financial Services sectors.
25 September 2024
Internal audit - annual planning tips for 2025
Our aim with this article is not to detail all the areas which insurance firms will need to consider, or even the areas of greatest risk which will no doubt have already been considered and incorporated into plans and strategies, but rather to identify some areas or perspectives which internal audit functions may not yet have considered in their risk assessments.
24 September 2024
PAYE reporting for Short Term Business Visitors
When employees of overseas branches of UK insurance companies makes business trips to work in the UK, or otherwise host STBVs, in the first instance PAYE income tax should be applied to 100% of their earnings in real time.
23 September 2024
Funded Re
The PRA’s recently published SS5/24 seeks to address concerns around the use of Funded Reinsurance (“Funded Re”) in the rapidly growing bulk purchase annuity (BPA) market, setting high expectations for the management of reinsurance counterparty risk. Firms are expected to perform gap assessments against the supervisory statement, set out remediation actions and provide other requested information...
Climate-related disclosures for insurers
Climate-related disclosures have moved from voluntary to mandatory and the bar for both minimum and best practice is rising.
6 September 2024
Ethical risks of AI in financial services
The role of artificial intelligence (AI) in financial services continues to exercise C-suite minds. Not least, how to balance AI’s benefits to enhance the customer experience and improve back-office operations with the ethical challenges that AI presents.
6 September 2024
Establishing a technology talent strategy
As financial services organisations increasingly focus on digital transformation, having the right expertise and skillsets is critical. However, it’s not simply a question of human capital. It requires developing a talent strategy that recognises the profound impact technology will have across the organisation.
6 September 2024
Emerging technology and sustainability reporting
The financial services sector is increasingly looking to technology to help tackle the rising levels of regulation they face.
25 July 2024
Mapping digital transformation
Financial services organisations see digital transformation as a top priority. While the competitive landscape has been evolving following the arrival of digital-first challenger banks and fintech players, emerging technology and rising mobile service demands from tech-savvy consumers are now pushing traditional players to innovate, rethink business models and how to accelerate and scale their technology...
18 July 2024
Financial services: confidence on the rise
Optimism in the financial services sector is riding high. So why is the financial services sector so confident and what needs to happen to ensure growth aspirations remain on track?
15 August 2024
Prepare for the FCA and PRA’s proposed D&I regime?
Both the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have highlighted Diversity and inclusion (D&I) as critical to their work on culture and governance. Benefits from D&I in the workplace include positive outcomes in risk management, good conduct, healthy working cultures and innovation.
Diversity, equality and inclusion in insurance
The insurance industry, often perceived as a bastion of tradition, is undergoing a seismic shift. Diversity, Equality and Inclusion are no longer buzzwords. It doesn’t matter which business function you work in, it is a business imperative. So, what does tangible progress actually look like?
Observations from the FCA’s webinar: One year on
The Financial Conduct Authority (FCA) live streamed an event on Wednesday 31 July, focusing on the impact of the Consumer Duty in its first year.
The FCA’s Business Plan 2024/25
The Financial Conduct Authority (FCA) published its 2024/25 Business Plan on 19 March, setting out how it will deliver the final year of its three-year strategy. To fulfil the FCA’s objectives [1], the strategy seeks to reduce and prevent serious harm, set and test higher standards and promote competition and positive change.
Outcomes monitoring multi-firm review
The FCA recently published a multi-firm review of outcomes monitoring under the Consumer Duty. While the review was carried out across 20 firms in the insurance sector, the findings are relevant across all sectors.
12 July 2024
Regulatory update for insurance: Q2 2024
In this article, we highlight regulatory developments in Q2 2024 for insurance covering Appointed Representative (AR) oversight, Guaranteed Asset Protection (GAP) sales, motor total loss claims, Consumer Duty updates, a post-implementation review of travel insurance signposting rules and Solvency II Matching Adjustment (MA) reforms.
FCA’s Business Plan 2023/24
On 5 April 2023, the Financial Conduct Authority (FCA) published the 2023/24 Business Plan which sets out how the regulator will deliver the second year of its three-year strategy. We highlight the key areas of focus from the Business Plan below.
Insurance – Q4 2023
In this article, we highlight regulatory developments in Q4 2023 within insurance covering the Insurance Distribution Directive, Solvency II, third country branches, fair value, and appointed representatives (ARs).
Insurance – Q3 2023
UK regulators published a wealth of materials for insurers in the third quarter of 2023.
Insurance - making digital adoption a reality
The UK hosts the fourth largest insurance market in the world, and the largest in Europe, with a total premium volume of just under $283 billion[1] recorded in 2017.
Suspension of GAP sales & fair value
The agreement to pause sales of Guaranteed Asset Protection (GAP) insurance for 80% of the market was a big headline in February. It may have come as a shock to some but the FCA’s concerns with GAP insurance are nothing new, dating back to its 2014 Market Study. The FCA pointed to its 2022 value measures data and had given GAP firms a stark warning in September 2023 over fair value.
Anti-greenwashing rule & the insurance industry
The FCA introduced the anti-greenwashing rule (AGR), which comes into effect on 31 May 2024, as part of its supervisory kit to create a common understanding of the sustainability characteristics of products and services.
How can you support customers when handling claims
In July 2023, the Financial Conduct Authority (FCA) made changes to its handbook [1] to embed guidance on good outcomes for customers experiencing financial difficulties. This sits in ICOBS 2.7 and, whilst claims handling is not specifically mentioned, it is relevant to how you support your customers at the point of claim.
Introducing a UK Insurance Resolution Regime
In January 2023, HM Treasury published its consultation paper setting out proposals for the introduction of an Insurance Resolution Regime (IRR) for the UK insurance sector.
FCA Dear CEO letter: cost of living & insurance
On 29 September 2022, the FCA acknowledged the continued challenges faced by consumers and businesses alike from the rising cost of living. The latest Dear CEO letter acknowledged the recent Government measures but noted the continuing financial challenges faced, including higher costs (such as energy costs) and staffing issues.
FCA’s Business Plan 2022/23
On Friday 8 April 2022, the FCA released its 2022/23 Business Plan in line with its usual timings. The scene is set with Covid-19 continuing to provide uncertainty, rising costs (due to inflation, interest rates and geopolitical uncertainty) and the risk of serious financial problems for many people.
Legislation day 2022
On Wednesday 20 July 2022, the government released draft legislation for the Finance Bill for 2022 and the results of consultations. We were expecting more draft legislation but there are some HMRC recommendations that cannot currently be signed off by ministers until we have a more stable government.