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IAIS 2023-2024 Roadmap outlines two-year workplan addressing key risks and trends in the insurance sector

19 January 2023
Knowledge Base

The International Association of Insurance Supervisors (IAIS) published its 2023-2024 Roadmap. The Roadmap outlines the IAIS’ work programme for the next two years and is guided by the 2020-2024 Strategic Plan. “In the 2023-2024 period, the IAIS will prioritise efforts on key multi-year projects while also responding to the many global issues and trends facing the insurance sector,” said IAIS Executive Committee Chair, Vicky Saporta. Continue reading…

Lieve Lowet

Lieve Lowet

EU Affairs consultant and lobbyist

Stressing cyber risks

06 December 2022
Knowledge Base

In its July dashboard, EIOPA (the European Insurance and Occupational Pensions Authority) revealed that digitalisation and cyber risks have become one of the most important risks for the European insurance sector, which a risk level equating to market and macro risks. The main driver is cyber security risk, followed by cyber underwriting risk. Elements contributing are the current war between Russia and Ukraine, increased reliance on remote and telework and on digital solutions and infrastructure. In that context, EIOPA published on 24 November 2022 a Discussion Paper on Methodological Principles of Insurance Stress Testing with focus on Cyber Risk. Deadline for response is 28 February 2023. Continue reading…

Lieve Lowet

Lieve Lowet

EU Affairs consultant and lobbyist

Capital relief in times of exceptional market-wide shocks

11 November 2022
Knowledge Base

In the proposals the Commission tabled in September 2021 reviewing the current Solvency II directive, a series of new macro-prudential tools have been introduced. Among those, a new Article 144 c has been put forward. According to its title, the article concerns “Supervisory measures to preserve the financial position of undertakings during exceptional market-wide shocks”. The current Solvency II directive only has provisions regarding supervisory powers in deteriorating financial conditions of individual (re)insurance undertakings (article 141). To avoid a repetition of the regulatory bricolage witnessed during (the early days of) the COVID-19 pandemic, and the ink spilled on this topic, the Commission has now provided this solution. Continue reading…

Financial watchdog warns insurers to protect customerswellbeing during cost of living squeeze

06 October 2022
Knowledge Base

The Financial Conduct Authority (FCA) is concerned that as pressure mounts on household budgets some customers may cut-back on the insurance they need, leaving them without protection. The government has announced further support for consumers and businesses for energy costs and in the September fiscal event, including a two-year energy-price guarantee for households. While this will help tackle the pressure on household budgets, some people may still consider cutting back on insurance cover. The FCA is taking action to support households, by writing to insurance industry CEOs to make sure their customers are protected from unnecessary products or add-ons and unfair penalties. Where poor practise is found, the FCA will quickly intervene to protect customers from harm.  Continue reading…

FCA sets out potential interventions to reform multi-occupancy buildings insurance market

27 September 2022
Knowledge Base

The Financial Conduct Authority (FCA) has on 21 September set out a range of recommendations and other potential remedies designed to give leaseholders greater protections from high prices and ensure the buildings insurance market operates better for leaseholders. Since the Grenfell tragedy leaseholders have been faced with substantially increased costs of insurance. In light of this, the FCA was asked to carry out a review into the market for multiple-occupancy residential buildings insurance and explore ways to provide better value cover for leaseholders.  Continue reading…

Lieve Lowet

Lieve Lowet

EU Affairs consultant and lobbyist

The Solvency II review – Cooperation platforms and low risk undertakings and groups (Part 2)

20 July 2022
Knowledge Base

Following changes in 2019 in the Solvency II directive, EIOPA has the power to set up and coordinate collaboration platforms to enhance collaboration between the relevant supervisory authorities where a (re)insurance undertaking carries out, or intends to carry out, cross-border activities based on the freedom to provide services or the freedom of establishment. For these platforms, the criterium is not significant cross-border activity from the point of view of the home supervisor, but relevance to the host Member State market. Around ten of these platforms have been set up since then. However, in several cases, according to the European Commission, supervisors have failed to reach a common view on how to address issues related to such cross-border business. Hence, the European Commission proposes to further enhance EIOPA’s role: the home supervisor must inform EIOPA and the relevant host supervisors if it identifies deteriorating financial conditions or other emerging risks which may have a cross-border effect. The host supervisor may notify EIOPA and the home supervisor if it has serious consumer protection concerns. The idea is to find a bilateral solution between home and host supervisors while EIOPA stands ready on the side Will that work? This is part two of Lieve Lowet’s latest blog on Solvency II (see related items for part 1). Continue reading…

Lieve Lowet

Lieve Lowet

EU Affairs consultant and lobbyist

The Solvency II review – How to safeguard the internal market in insurance? (Part 1)

18 July 2022
Knowledge Base

Since the introduction of Solvency II, there have been very few failures in the insurance sector. Because some failures had cross-border consequences, there has been pressure to change the present regulatory regime in order to give more powers to host supervisors and to EIOPA. Although the functioning of the internal market in insurance can certainly be improved, care must be taken not to overload the barge and to respect the approach that was agreed in the nineties for all financial service operators, i.e. a single market with a single license (European passport) and home country control. Failures are in a way a proof that market mechanisms are working. But in the financial services area, failures are more undesirable than in the rest of the services sector, especially in a cross-border context exercised via the freedom of establishment or the freedom to provide services (FPS). Despite the fact that Solvency II was not conceived as a zero-failure regime and that few failures have occurred in practice, the European Commission, pushed by EIOPA, is proposing important amendments to the present regime for insurers that operate cross-border, justified by supervisory shortcomings and a varying degree of policyholder protection across the EU following these failures. This is part one of Lieve Lowet’s latest blog posts on Solvency II. Part 2 will be published this Wednesday. Continue reading…

20th Anniversary of the International Association of Deposit Insurers

13 May 2022
Knowledge Base

The 6th of May 2022 marks the 20th Anniversary of the International Association of Deposit Insurers (IADI).  On this date in 2002, IADI was incorporated in Basel, Switzerland, with a mission to share deposit insurance expertise with the world.  There is much to celebrate as we reflect on two decades of accomplishments in fulfilling IADI’s key objectives to: “…to contribute to the stability of financial systems by promoting international cooperation in the field of deposit insurance and to encourage wide international contact among deposit insurers and other interested parties”.  Continue reading…

The clock is ticking on International Financial Reporting Standard IFRS 17

26 April 2022
Knowledge Base

The clock is ticking on International Financial Reporting Standard 17 (IFRS 17), the January 1, 2023, compliance deadline drawing ever closer. For insurers around the globe struggling with self-development or “empty box” software solutions, there is a new path forward: KPMG IFRS 17 Express – powered by SAS®. The IFRS 17 solution blends KPMG’s deep IFRS experience, SAS’ best-of-breed analytics and an IFRS 17 methodology globally tested by Allianz, one of the world’s leading insurance groups with customers in more than 70 countries.
Continue reading…

The 2021 Global Insurance Market Report

17 December 2021
Knowledge Base

The 2021 Global Insurance Market Report (GIMAR) reports on the outcome of the 2021 Global Monitoring Exercise (GME), the IAIS’ risk assessment framework to monitor key risks and trends and to detect the potential build-up of systemic risk in the global insurance sector. The report also provides an update on the outcome of the Covid-19 targeted assessment based on year-end 2020 data. The GME builds on data collected from approximately 60 of the largest international insurance groups (individual insurer monitoring or IIM) and aggregate sector-wide data from supervisors across the globe (sector-wide monitoring or SWM), covering over 90% of global written premiums. Continue reading…