Regulatory

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Since the Spitzer enquiries into broker commissions in the US in 2004/5, the issues of whether to make commission dislcosure mandatory and whether further regulation is required in respect of conflicts of interest have never really been far from the Financial Services Authority’s (FSA) radar. The market strived to find a solution that would deter the FSA from introducing yet more regulation but has failed, thus far, to find a commonly accepted solution as market views are polarised. …
Read More UK: Could Mandatory Disclosure of Broker Commissions be on the Cards?

The Financial Services Authority (FSA) has published a new guidance note entitled ICOBS at a glance. This brief document highlights the new conduct of business rules for insurers and provides a brief summary of the main requirements of the new Insurance: Conduct of Business sourcebook (ICOBS), with the aim of assisting insurance companies and intermediaries in the UK, who have 3 months left in which to ensure that their processes and policies meet the new standards. …
Read More ICOBS at a Glance: Highlights of the New Rules

On 12 March, the UK Chancellor of the Exchequer, Alistair Darling, delivered the Government’s 2008 Budget Report, which acknowledged the susceptibility of the UK economy to the unfolding financial credit crisis. The Report noted that the world economy was facing a more challenging environment than was apparent in 2007, with continued disruption in global financial markets, which had caused the downgrading of the UK economy growth forecast for 2009 from 2.5 – 3% to 2.25 – 2.75%. …
Read More UK 2008 Budget Report

On 26 February 2008, the European Commission issued an amended proposal to the Solvency II Directive Proposal (COM (2007) 361) which was adopted on 10 July 2007. The July 2007 version of the Solvency II Directive Proposal represented a recast of 13 existing Directives in the insurance and reinsurance sector, together with new solvency provisions. …
Read More Commission Issues Amended Proposal to the Solvency II Proposal

The Kansas Senate has passed a bill, S.B. 560, that would allow property/casualty insurers to increase rates up to 12% without regulatory approval.  The bill was based on the National Conference of Insurance Legislators’ (“NCOIL”) Flex-Rating Model Act.  The version passed by the Kansas Senate differs slightly from the NCOIL Flex-Rating Model Act, in that it also allows property/casualty insurers to decrease rates by any amount, rather than establishing a 12% floor. …
Read More Kansas May Adopt Flex-Rating For Property/Casualty Insurers

Two weeks ago the Florida House of Representatives’ Jobs and Entrepreneurship Committee unanimously passed a bill, requiring insurers, which participate in Florida’s Hurricane Catastrophe Fund (“Cat Fund”), to purchase reinsurance from the private market.  The bill specifically seeks to eliminate last year’s $12 billion increase in Cat Fund coverage. 

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Read More Florida House Committee Passes Legislation to Expand Private Reinsurance Market