i-law.com - Newsletter (Insurance Regulation & Accounting)

Coming your way…

IR&A’s timetable is regularly updated to cover as many new developments as possible while also keeping an eye on events as they unfold. The first table incorporates the FSA’s agenda for consultations, discussion documents, thematic work or events of interest to insurers for 2006 and beyond. On the next page we list the events, papers and developments on the horizon from other bodies in the UK, Europe and internationally.

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

Insurance buyers must raise their game

This issue of IR&A covered John Tiner’s words of advice to the commercial buyers of insurance in the UK (see page 1). In the same speech, he also spoke about the regulator’s challenge in balancing regulation of the wholesale insurance market and the buyers’ power in influencing change in the insurance industry. In this extract from that speech, Mr Tiner defines the different roles of the regulator and the insurance buyer in reaching the shared goal of a sound but competitive insurance market.

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

FSA reduces reinsurance rules to meet EU minimum rules

The European Commission’s Reinsurance Directive posed several major issues for the UK regulator. With rules already in place for reinsurers that exceeded the EU minimum, the FSA’s new principles-based approach and pledge to avoid gold-plating has led to a reduction in rules for pure reinsurers.

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

Briefly noted

▪ US and UK regulators met at the beginning of June to discuss the regulatory implications of capital flows between the two nations. The Securities & Exchange Commission and the Financial Services Authority discussed the impact of..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

London market criticises FSA regulation

At a recent industry event hosted by sister publication Insurance Day, London market insurers called for “lighter touch” regulation to help City firms compete with off-shore domiciles. At the summit held in London, Hiscox chairman Robert..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

FASB considers unbundling to address finite reinsurance concerns

The US accounting standards setter is looking at ways to address the concern over finite reinsurance contracts bought by insurance and reinsurance companies following a number of high profile cases that have led to restatements and regulatory..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

Phase II paper on schedule for end 2006

The IASB said it is on track to publish a discussion paper on Phase II of the project for insurance contracts by the end of this year. A board meeting held in May clarified some of the remaining points, including accounting for reinsurance and the..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

IAIS lobbies for regulatory consistent Phase II

The International Association of Insurance Supervisors (IAIS) has made clear its hopes for the second and final phase of the International Accounting Standards Board’s (IASB) project for insurance. Supervisors are lobbying for compatibility..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

Supervisors identify impact of IFRS

It has been over 18 months since International Financial Reporting Standards (IFRS) were officially adopted by European Union member states and taken up by a number of jurisdictions outside the EU. For insurance, the road to IFRS 4 Insurance..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

CEA impact questionnaire to capture insurers’ views

European insurers and reinsurers have until 18 August to respond to the Comité Européen des Assurances’ (CEA) questionnaire on the impact of Solvency II on the industry and its products. The CEA said the results of the survey will be..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

Consumer lobby fails to win increases in compensation limits

The limits available to policyholders of failed financial services firms under the Financial Services Compensation Scheme and the Financial Ombudsman Service will remain unchanged, confirmed the regulator recently following a consultation. The FSA..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

FSA seeks improvement from critical illness sales

The UK regulator’s treating customers fairly campaign has turned its attentions to the critical illness industry. During visits to firms and mystery shopping exercises to assess the levels of compliance with the regulator’s rules on..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

EFSRT gathers views on failure of single market

The European Financial Services Round Table (EFSRT) is opening its forum on the competitiveness of financial services to supervisors and market players. Due to be held on 20 June in Stockholm, the heads of 20 of Europe’s largest banks and..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

Briefly noted

▪ There are fresh calls for the Financial Services Authority to fall under the jurisdiction of the National Audit Office (NAO), in line with other public bodies and regulators. An IFA firm, Temple Bar, has written an open letter to the FSA..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

NAIC vote shows interest in collateral alternative

Lobbying efforts by London and European reinsurers to change the 100% collateral rule in the US are at their most crucial stage since the struggle began several decades ago. Significant strides were made earlier this year when the National..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

FSA pledges not to apply rules retrospectively

The Financial Services Authority (FSA) has assured financial advisers that it does not intend to apply any new rules retrospectively. The pledge, by the FSA’s director of small firms Stephen Bland, follows the concern held by many companies..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

IAIS reviews cross-border supervision

A review by the Financial Conglomerates Subcommittee of the International Association of Insurance Supervisors (IAIS) has found that there are no significant gaps in the organisation’s guidance to promote co-operation and information exchange..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

Foreign regulation of LSE a possibility

Regulation of the London Stock Exchange could conceivably leave UK shores if a multinational takeover or merger were to occur in the future, said chairman of the Financial Services Authority Callum McCarthy recently. He stressed that while this was..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

CEA proposes organisational restructure

The Comité Européen des Assurances (CEA) is to propose restructuring its organisation in a June meeting of the CEA General Assembly. Under the proposals, Daniel Schanté will move from his post of director general to become an adviser..

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

Reinsurance rules reduced

FSA ends super-equivalence threat from new EU directive

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006

FSA challenges insurance buyers

Buyers need to raise their game to improve contract certainty

Online Published Date: 01 July 2006

Appeared in issue: 38 - 01 July 2006