European Union: Pinsent Masons Insurance Briefing - Insurance Third Party Rights Rules Do Not Apply Retrospectively, Court Confirms

Last Updated: 9 August 2017
Article by Colin Read, Alexis Roberts and Nicholas Bradley

Welcome to Insurance Briefing - a fortnightly round-up of insurance legal and business developments published on Out-Law - with analysis and commentary from the insurance team at Pinsent Masons. 

The six topics of focus this fortnight include:

Insurance third party rights rules do not apply retrospectively, court confirms

The more burdensome 1930 regime governing the rights of third parties to claim directly against insurers of insolvent defendants will continue to apply where the cause of action accrued and the defendant became insolvent before 1 August 2016, regardless of when the third party's right to compensation was established, a court has confirmed. Insurance law expert Colin Read of Pinsent Masons, welcomed the judgment, which he noted was "relevant to a number of other pending actions". He said: "The clarity the decision provides will help to avoid wasteful satellite disputes in those and other cases. After a wait of six years for the 2010 Act to come into force, we are now starting to see some cases on its application. For example, we have recently seen reports of an oral judgment in another case on the Act, involving the BAE System pension fund trustees, which reportedly confirms that a claimant may sue an insurer of an insolvent insured direct under the new Act, even where there is a coverage dispute. In other words, as was the aim of the legislation, the new regime provides a truly one-stage process for determining both the underlying liability of the insured and the consequent liability of the insurer." Read more...

New law will tighten regulation of claims companies, move regulation to FCA

Claims management companies (CMCs) will face stricter regulation when responsibility for regulation moves from the Ministry of Justice (MOJ) to the Financial Conduct Authority (FCA), though new rules stop short of a ban on cold calling and cold texting.  The CMC industry is expected to face a much tighter and tougher regulatory framework as a result including more individual personal accountability. Complaints about CMCs will also be dealt with by the Financial Ombudsman (FOS) under the new regime. The FCA is expected to consult on the details of plans contained in the Financial Guidance and Claims Bill, which was laid before the UK parliament on 22 June. The FCA is likely to consider implementing recommendations from the 2016 Brady review such as: a more robust authorisation process; increased personal accountability; and wider use of warrants and seizure powers. Read more...

Number of claims management companies falls as tighter regulation takes hold

The number of authorised claims management companies (CMCs) in the UK has fallen by 57% since 2011, with industry turnover also declining, according to the industry regulator. The Claims Management Regulation Annual Report 2017 showed that industry turnover fell 3% in 2016/17 to £726 million, the third successive year of decline. However turnover in the financial claims sector increased by 2% to £541 million despite a reported reduction in redress for payment protection insurance (PPI). The regulator said the financial claims sector was "top heavy" with six companies handling more than half of all PPI complaints and the 13 largest companies accounting for over 50% of turnover. In total there were 674 authorised financial claims companies last year, a drop from 790 the previous year. Read more...

Financial regulators consult on extension of Senior Managers and Certification Regime

The UK's financial regulators have promised a "consistent and proportionate" regulatory framework as they consult on proposals for the extension of individual accountability rules. The Financial Conduct Authority (FCA) has proposed a tiered approach to applying the Senior Managers and Certification Regime (SM&CR) across the wider financial sector, as set out in its consultation on the proposals. Both the FCA and the Prudential Regulation Authority (PRA) are also consulting on extending the rules to insurers and reinsurers, which are currently covered by the PRA's Senior Insurance Managers Regime (SIMR) and a revised version of the FCA's Approved Persons Regime (APR). It is proposed that the SM&CR, which currently applies to deposit-taking banks, be extended to almost all other firms regulated by the FCA at a date to be set by the UK Treasury, expected for some time in 2018. It will replace the current APR for those firms and change how individuals working in financial services are regulated, according to the FCA. Read more...

UK bill to ensure sanctions powers post-Brexit

The UK government has published plans for a Bill that will allow it to impose global sanctions after it leaves the European Union. The Sanctions Bill will allow the UK to continue to play a "central role in global sanctions to combat the threats of terrorism, conflict and the proliferation of nuclear weapons", the government said. The UK currently imposes non-UN sanctions through the 1972 European Communities Act. After Brexit it would not be able to enforce those sanctions without new legislation. The proposed Bill includes additional powers to cut off funding for terrorists by making it easier to freeze assets and block access to bank accounts. Read more...

Uber France partners with Axa to offer insurance cover for drivers
Uber France is to work with insurance company Axa to offer accident cover to its drivers. Axa will "bring its experience in the protection of independent workers, notably on coverage of medical expenses, disability indemnities, and survivor benefits in case of an accident" to Uber's drivers by autumn 2017, it said. Pierre-Dimitri Gore-Coty, Uber's head of operations for Europe, Middle East and Africa said: "We're thrilled to partner with Axa, to develop an innovative package that will provide independent workers that use Uber technology with accident insurance. This partnership will provide a safety net for the independent workers ... and we'll carry on listening about further improvements we can make to create the best possible experience." Read more...

Find the briefing online here. For regular comments, news and views from the insurance team at Pinsent Masons, see our insurance content on Out-law here.

You may also be interested in:
Investment Management Brief - 27 July 2017  
Financial Services Enforcement Monthly Publication - July 2017   

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
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
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 you may opt out by clicking here

    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.

    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.

    Emails

    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .

    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.

    By clicking Register you state you have read and agree to our Terms and Conditions