UK: Corporate Insurance Newsletter - July 2013

Regulatory FCA launches thematic review of insurance brokers' management of conflicts of interest

On the 2nd of July, the FCA published a speech by Simon Green, Head of General Insurance and Protection at the FCA, which launched a thematic review by the FCA of insurance brokers' management of conflicts of interest. The review is to focus on SME and micro-business customers.

Mr Green highlighted that the thematic review will be particularly interested in looking at how insurance brokers handle conflicts of interest in relation to revenue received, including payments received from insurance companies (outside of broking commission in the normal range), such as profit share and volume arrangements.

The findings and final recommendations of the FCA's thematic review are expected to be delivered in the last quarter of this year.

Read the speech

PRA publishes modification by consent of interim prudential sourcebook for insurers (IPRU)

IPRU Rules 9.17, 9.19, 9.20 and 9.20A require general insurance firms to complete certain reporting forms giving information about their insurance business.

The PRA have now announced a modification by consent procedure whereby certain firms may obtain a waiver or modification of these rules.

The procedure will generally only be available to an insurance business in run-off and whose business in each reporting category is less than GBP 100 million.

Read more

FCA launches thematic review of insurance claims process

On the 15th of May, the FCA published a speech by Martin Wheatley, Chief Executive of the FCA, to the British Insurance Brokers' Association conference, which launched a thematic review into the claims process across the general insurance market but with a particular focus on household and travel claims.

The thematic review is intended to address and investigate public concerns that policy holders might be facing delays; poor customer service; or having valid claims unfairly declined.

According to Mr Wheatley, evidence will be obtained on the following issues:

  • Does the experience of customers vary according to whether they bought their insurance directly, through a broker or through an affinity scheme?
  • How good are insurers in explaining up front what will happen when a customer makes a claim?
  • How well do insurers keep customers informed on the progress of claims?
  • Are payments to customers being made in a fair and consistent way when they are due?
  • Are companies acting ethically towards their customers?
  • Is the claims department as well resourced as the sales team?

Mr Wheatley emphasised that, whilst the thematic review might eventually lead the FCA to revisit its rules, the immediate preference is for firms to revisit their culture and to move away from overreliance on the mechanics of compliance and instead focus on a good outcome for consumers.

It is expected that the FCA will deliver its findings and final recommendations on the thematic review by the last quarter of this year.

Read the speech

Solvency II

On the 14th of June, the European Insurance and Occupational Pensions Authority (EIOPA) published the technical findings of its assessment on the "Long-Term Guarantee Package" (measures to be included in the Solvency II framework concerning supervision of long-term guarantee products).

EIOPA's findings supported some of the measures tested but advised on the exclusion of others (including the Extended Matching Adjustment).

Read the EIOPA technical findings


Ratings Agency, Fitch, has affirmed Lloyd's 'A+' rating and revised the outlook to positive from stable.

According to Fitch, the affirmation of Lloyd's 'A' rating reflects Lloyd's strong financial profile, low financial leverage and significant market position in both insurance and reinsurance classes.

Fitch highlighted the positive role of the Lloyd's Performance Management Directorate (PMD) in increasing oversight of market participants and reducing earnings volatility as well as the investment by Lloyd's in preparing for Solvency II, which has enhanced risk and exposure management practices across the market.

Read more


Application of the Takeover Code to be widened

As matters currently stand, the Takeover Code applies to offers for companies that have their registered office in the UK, the Channel Islands or the Isle of Man and whose securities are admitted to trading on a regulated market (as defined in MiFID) in the UK (which includes the Main Market of the London Stock Exchange, the Main Board of the ICAP Securities and Derivatives Exchange (ISDX) and any stock exchange in the Channel Islands or the Isle of Man). This is the case regardless of the location of the place of central management and control of such companies.

The Code also currently applies to offers for public companies (and certain private companies) which have both their place of central management and control (the so-called "residency test") and registered office in the UK, the Channel Islands or the Isle of Man.

Following the publication of a consultation paper on the 5th of July 2012 and subsequent consultation with respondents, the Takeover Panel has published a response statement on the 15th of May 2013, which concluded that the residency test should no longer apply to offers for companies that have their registered office in the UK, Channel Islands or Isle of Man and which have their securities admitted to trading on a multi-lateral trading facility (as defined in MiFID) in the UK, such as AIM or the ISDX Growth Market.

The extension to the Takeover Code's jurisdiction is to take effect from the 30th of September 2013.

Read the response statement by the Code Committee of the Takeover Panel


Challenges for regional businesses purchasing insurance in the Middle East

Regional businesses across the Middle East face a number of challenges when considering the purchase of insurance. Key considerations include: understanding region-specific risks and liabilities to which a business operating in the Middle East may be exposed, as well as being aware of mandatory insurance requirements.

Read more

New personal accident compensation criteria announced in China

On the 8th of June 2013, The Insurance Association of China announced new personal accident compensation criteria called the 'Evaluation Standards for Personal Accident Injury and Disability'. These replace the old criteria and represent a significant expansion in the scope of personal accident injury insurance in China.

Read more


For all our latest articles on sanctions please see our sanctions web page.

Sanctions microsite

We have developed a dedicated sanctions microsite where you will find all our sanctions articles and events and useful information relating to Iran, Libya, North Korea, Syria, Cuba and Burma/Myanmar.

Access microsite

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

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

In association with
Related Video
Up-coming Events Search
Font Size:
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
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (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

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’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.


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.


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 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.


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.


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.


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.


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

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

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

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