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In the June edition of Insurance and Reinsurance Review, we reported on the current status of implementation of the Reinsurance Directive across the European Union (the article can be found here. At the time, we reported that Portugal had not yet commenced its public consultation. That consultation has now been commenced, and is open until 8 July 2008. 

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Read More EU: Portugal Consults on the Implementation of the Reinsurance Directive

BIBA has formally responded to the FSA’s DP on transparency, disclosure and conflicts of interest in the commercial insurance market (See: BIBA press release). 

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Read More UK: The British Insurance Brokers’ Association (BIBA) Has Responded to the FSA’s Discussion Paper (DP) on Transparency

Connecticut Governor M. Jodi Rell recently vetoed House Bill 5536, An Act Establishing the Connecticut Healthcare Partnership (the “Bill”), which is intended to achieve savings for Connecticut municipalities, nonprofit groups and small employers with 50 employees or less by allowing them to join the current state employees’ health insurance program. 

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Read More Connecticut Governor Vetoes Bill Establishing the Connecticut Healthcare Partnership

In a report published by the Treasury Select Committee on 19 June 2008, the UK City watchdog, the Financial Services Authority (FSA), was heavily criticised for not providing a “robust enough framework” to manage the conflicts of interest inherent in proprietary life funds. …
Read More UK: FSA Heavily Criticised by Government Committee for Lack of Protection for Life Fund Policies

A white paper examining the potential impact of climate change on the insurance industry has recently been approved by the National Association of Insurance Commissioners’ (“NAIC”) Climate Change and Global Warming Task Force (the “Task Force”).  The white paper is intended to begin a process of encouraging, or even requiring, insurers to address climate change risk in order to protect consumer and insurer solvency. …
Read More NAIC Considers Climate Change Measures

Last week, North Carolina Insurance Commissioner Jim Long issued a news release urging consumers holding long term care insurance policies issued by two subsidiaries of Conseco Inc. (“Conseco”) to be aware of a multi-state settlement (the “Settlement”) that could result in adjustments made to past claims.  Conseco agreed to a $2.3 million fine, along with an additional $30 million for claims-handling improvements and restitution. 

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Read More North Carolina Issues News Release Regarding Conseco’s Multi-State Settlement Regarding Long Term Care Insurance Claims

On 10 June 2008, the CEA issued a press release stating that it believed that failure to adopt a risk-based approach to the calculation of the MCR would perpetuate the disadvantages of the current regulatory system, Solvency I. Michaela Koller, director general of the CEA, said that, “Approaches to calculating the MCR that are not consistent with the overall system could jeopardise the effectiveness of the whole Solvency II regime” and called for the MCR to be linked to the solvency capital (SCR) requirement so that both reflect the true risk profile of the insurer. The CEA suggested that the MCR should be calculated as a percentage of the SCR. 

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Read More EU: Solvency II – Comité Européen des Assurances (CEA) Calls for Risk-Sensitive Approach to the Calculation of the Minimum Capital Requirement (MCR)