UK: IMU Newsletter - Keeping Abreast Of Developments, March 2009

Last Updated: 26 March 2009
Article by Deloitte Financial Services Group

Most Read Contributor in UK, August 2017

Welcome to the March edition of the IMU newsletter which provides you with a summary of the latest accounting, actuarial and regulatory developments in the insurance market.

In this edition you can find out more about the following topics:

  • FSA issues waiver by consent on market and counterparty limits.
  • ABI discussion paper on regulation and markets.
  • ABI issues Solvency II bulletin.
  • IAIS publishes issues paper on group-wide solvency assessment and supervision.
  • BAS issues Exposure Draft on reporting actuarial information.
  • FSA requires the cessation of sales of single-premium PPI.
  • FSA consults further on changes to the with-profits rules.
  • FSCS issue Plan and Budget 2009/10.
  • About this newsletter and the Insurance Centre of Excellence.

This newsletter is prepared by the Deloitte Insurance Centre of Excellence (ICoE).

We hope you find it informative and would welcome any feedback or suggestions you may have.

FSA issues waiver by consent on market and counterparty limits

In March 2009, the Financial Services Authority ("FSA") issued a waiver by consent on the market and counterparty limits in relation to exposures to entities that have HM Treasury as a common shareholder. This waiver is available to insurance companies, and will allow insurers to treat exposures to entities with HM Treasury as a common shareholder separately (i.e. they will not be considered to be closely related counterparties solely because of the HM Treasury interest).

Interactive link to related information

FSA Waiver

ABI discussion paper on regulation and markets

On 13 March 2009, the Association of British Insurers ("ABI") published a discussion paper titled 'Regulation and Markets for the 21st Century'. This paper discusses the current market conditions and related crisis of confidence and proposes that the solution, while considering UK competitiveness, should be based on what is best for consumers. To achieve this, the ABI proposed 5 key principles which should drive future policy making and regulation:

  • A safe and secure financial services system,
  • Prudentially sound firms,
  • Competition and innovation,
  • Regulation that works across borders, and
  • Capital markets that are connected to users' needs.

Interactive link to related information

ABI News Release

ABI issues Solvency II bulletin

On 11 March 2009, the Association of British Insurers ("ABI") issued its latest bulletin on Solvency II. Among other things, this issue covers: the current state of Solvency II in Europe, in particular the complexities and potential problems relating to the implementation of the group solvency regime, and the results of the De Larosiere report issued on 25 February 2009.

Interactive link to related information

ABI Solvency II Bulletin (pdf)

IAIS publishes issues paper on group-wide solvency assessment and supervision

On 9 March 2009, the International Association of Insurance Supervisors ("IAIS") published a paper on group-wide solvency assessment and supervision. The paper highlights a number of important issues and challenges that should be considered in developing a group-wide solvency regime and notes that there are a number of disparate supervisory approaches currently in place. The IAIS also notes that this paper is a preliminary exploration, and that further analysis and consideration will be required.

Interactive link to related information

IAIS Press Releases

BAS issues Exposure Draft on reporting actuarial information

On 5 March 2009, the Board for Actuarial Standards ("BAS") issued its second Exposure Draft of the generic standard on reporting actuarial information. This follows recent consultations on the two other generic standards on data and modelling. The reporting standard is likely to be the first one issued by the BAS. It is expected to be in force from April 2010 and apply to all work that an entity is required to obtain from a qualified actuary; this represents a change in scope, which is still being consulted on.

The consultation period for the exposure draft ends on 29 May 2009.

Interactive link to related information

BAS Press Notice and link to ED

FSA requires the cessation of sales of single premium PPI

On 24 February 2009, the Financial Services Authority ("FSA") issued a 'Dear CEO' letter to all firms selling single-premium payment protection insurance ("PPI") asking them to withdraw the product as soon as possible and forbidding sale after 29 May 2009.

This follows on from the Competition Commissions January 2009 report which found that there are features of the current market practices which prevent, restrict or distort competition for the sale of PPI. Two speeches on the subject of PPI were given at the recent British Bankers' Association seminar, one by Dan Waters of the FSA, the other by Tony Boorman of the Financial Ombudsman Service.

Interactive links to related information

FSA Press Release and link to"Dear CEO" letter

Dan Waters' Speech

Tony Boorman's Speech

FSA consults further on changes to the with profits rules

On 23 February 2009, the Financial Services Authority ("FSA") published CP09/9 'With-profits funds – compensation and redress', a further consultation paper relating to compensation and redress payments from operational failures made from with-profits funds. This follows from the initial consultation paper CP 08/11 published in June 2008.

This new consultation proposes that compensation and redress payments, arising from events after the rule takes place, will not be payable from with-profits funds unless it is paid from that part of the with-profits fund that is attributable to shareholders.

The consultation period closes on 22 May 2009.

Interactive link to related information

FSA Press Release and link to CP

FSCS issue Plan and Budget 2009/10

On 12 February 2009, the Financial Services Compensation Scheme ("FSCS") published its Plan and Budget for 2009/10. The FSCS noted the significant impact of the current market conditions, particularly the failures of various banking institutions, which is driving a significant increase in the levies for the current year (largely on deposit taking institutions).

Interactive link to related information

FSCS News

Any comments or questions about this newsletter?

This publication is designed to keep readers abreast of current developments, but it is a general guide only and is not intended to be a comprehensive statement of the law or regulations and not an exhaustive treatment of those current developments. Accordingly, the information in this publication is not intended to constitute accounting, tax, legal, investment, consulting, or other professional advice or services. It therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication.

Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. If you would like more information or would like to discuss any of the issues set out in this newsletter please contact your usual Deloitte contact or any of the ICoE team listed below and they will be pleased to help you.

Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.

The Insurance Centre of Excellence

The Deloitte Insurance Centre of Excellence (ICoE) is a dedicated technical group, within our insurance practice, with a reputation for outstanding technical quality and thought leadership embracing senior professionals from all areas of the business.

We play a guiding role in our profession and liaise with industry and trade bodies – an inside track on the latest accounting and regulatory changes means that we are perfectly placed to advise on current issues. We understand the insurance market and as part of a significant practice with a wide breadth of expertise the ICoE team can draw on a blend of skills to deliver outstanding financial, actuarial, tax, commercial and regulatory advice and knowledge that addresses the issues and challenges facing the industry

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
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.