UK: Corporate Insurance Newsletter - June 2012

Welcome to this update from Clyde & Co's Corporate Insurance Team summarises new developments as reported by the FSA, Lloyd's of London, BIBA and other sources, with links to the full documents where these are available.

Regulatory

FSA Q&A Solvency II

On 23 April 2012, the FSA published a new webpage that brings together the most up-to-date questions and answers (Q&As) from its Solvency II programme. More

Changes to the Conduct of Business Sourcebook

Article, by Andy Tromans and Samantha Jones of Clyde & Co, explores the FSA's final rules on "protecting with-profits policyholders", which was published on March 7, almost a year after it published its controversial consultation paper on the subject. The article highlights the sense of back-paddling within the policy statement, particularly in relation to mutual insurers, observing that the FSA may not now have the appetite to impose a very broad definition of policyholder interests on with-profits mutuals. More

Result of ECJ gender ruling is confusion.com

Written by Geraldine Quirk. With less than 12 months to go before the ECJ ruling on gender discrimination comes into effect, there is still a considerable amount of confusion and uncertainty in the market regarding how insurance companies should respond. At a recent seminar hosted at our offices in London, we set out to explore the background to the ruling, analyse the legislation and consider how you should best assess the risks that it presents. More

What does the European Court ruling on gender (Test Achats) mean for me?

The ABI has put together a useful guide in relation to the Test Achats ruling. The European Court has ruled that insurers can no longer consider whether you are a man or a woman when pricing insurance policies from 21 December 2012. The main policies to be affected are those which use gender as a factor in pricing for risk: motor insurance, annuities and life insurance. More

Solvency II and the road to 2014: The impact on insurers and reinsurers

Written by Jon Turnbull and Geraldine Quick for The International Comparative Legal Guide to: Insurance & Reinsurance. The Solvency II Directive (2009/138/EC) provides the framework for a comprehensive overhaul of the existing system of regulation, covering authorisation; corporate governance; supervisory reporting and public disclosure; risk assessment and management; and solvency and reserving.

This article appeared in the 2012 edition of The International Comparative Legal Guide to: Insurance & Reinsurance 2012; published by Global Legal Group Ltd, London. More

FSCS confirms £36m annual levy for general insurance intermediation

The Financial Services Compensation Scheme (FSCS) has confirmed its proposed levy for 2012/13 at £265m. The levy has increased by £44m since FSCS published its initial assumptions in the Plan and Budget 2012/13 in February. It follows an up-to-date analysis of claims paid in the previous year and claims assumptions for 2012/13. More

Solvency II and the London Market

Julian Adams, Director of the Insurance Division at the Financial Services Authority (FSA) delivered a keynote address on the 15th May at the Insurance Day Summit on the journey towards the implementation of Solvency II and he also gave some specific feedback on some of the issues the FSA have seen. According to Adams some firms have not considered the extent to which certain issues may or may not be material to their overall position, and then applied an appropriate degree of rigour, there are similar issues with model scope and also aggregation and dependency assumptions. Additionally the FSA has made a number of separate observations in the area of validation and validation policies. The first and overarching point is that some of the validation policies have been so vague that they have not been able to draw any assurance from them.More

European Commission issues Solvency II timeline

The European Commission has reiterated that they very much support the entry into force of Solvency II from 1 January 2014 and will make every effort to secure this. As at May 2012, EIOPA expects to have the legal powers to consult on standards and guidelines from late Autumn 2012. More

Europe

Eurozone crisis and the possible impact on insurers

Article by Nigel Brook of Clyde & Co. The recent loan bailout of Greece appears to have averted, at least for now, the prospect of one or more eurozone countries leaving the euro. However insurers can usefully consider the implications of this happening at some stage, because many of these can be addressed in advance. This could have implications for the insurer's assets including sovereign debt but this piece focuses on insurance policies. More

Sanctions

Breaching sanctions: the consequences

The extensive utilisation of sanctions as a foreign policy tool is a comparatively recent development in the European Union. As such, there are limited examples of enforcement actions taken against those who breach sanctions, whether deliberately or accidentally.

This is in contrast to the United States, where there is a history of enforcement actions going back many years, with significant fines being imposed on violators responsible for multiple breaches. However, evidence suggests that the UK Government is now taking enforcement more seriously.

Please click here to view our Sanctions Update on this issue.

If you have any questions, please do not hesitate to get in touch with any of the key contacts listed on our sanctions microsite or your usual contact.

Corporate

HMRC makes changes to the stock transfer form

A new certificate has been added to the reverse of the stock transfer form, to be completed when a share transfer is 'otherwise' exempt from stamp duty or no chargeable consideration is given for the transfer. HM Revenue & Customs (HMRC) guidance has been updated to provide advice on completing this new certificate.The new form will be available from suppliers from 6 April 2012. HMRC recommends use of the new form on and from that date but confirms that it will accept old versions of the stock transfer form until 5 September 2012. More

News in brief from the industry

Private motor insurance market under scrutiny. The Office of Fair Trading (OFT) have provisionally referred the private motor insurance market to the Competition Commission. It claims it has found evidence that insurers are competing in a 'dysfunctional' way

BIBA has created new guidance on the Bribery Act for its members available on its website

The ABI has updated news stories on the crime of metal theft, the compensation culture and the high cost of motor insurance

The MIB highlights uninsured drivers in its April update

The FSA has fined Habib Bank AG Zurich for anti-money laundering failings

Insurance Fraud Bureau launches insurance fraud register

Cases

Sulamerica CIA v Enesa: Governing law and scope of arbitration agreement/whether a binding obligation to mediate first

http://www.bailii.org/ew/cases/EWCA/Civ/2012/638.html

Clyde & Co (Peter Hirst and Richard Butt) for respondents, White & Case for appellants. This case highlights that the courts will strive to ascertain the intention of the parties where clauses in a policy potentially conflict with each other or are uncertain. In the case of mediation, it again stresses the importance of setting out a clear mediation process in order to ensure that the mediation clause in a contract will be enforceable.

Yeates v Aviva Insurance: Application for extension of time to appeal/insurers' argument that claim is fraudulent

http://www.bailii.org/ew/cases/EWCA/Civ/2012/634.html.

Although the Court of Appeal did not need to further consider the underlying appeal, it is worth recalling that in the recent case of Aviva Insurance v Brown an (eventually aborted) attempt to claim approximately £6,500 per month for accommodation costs in relation to a property which the insured in fact owned as part of a genuine total claim of over £230,000 (ie under 3% of the claim, per month) was not viewed as "immaterial" either.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.