1.1. Insurance Bill: amendments to be considered by Special Public Bill Committee (UK)
We previously reported on a seminar that HFW hosted on preparing for the new Insurance Bill, which is currently being examined by a Special Public Bill Committee in the House of Lords as part of the Parliamentary procedure. If the Bill progresses through Parliament and receives Royal Assent before the current Parliamentary session ends in March 2015, we expect the new Act to enter into force in mid-2016.
The Committee is due to meet on Monday 15 December to consider amendments to the Bill. In anticipation of this, the Committee is seeking the views of the public on the provisions of the Bill and any other matters that are relevant to the subject matter. Any submissions must be made by next Thursday 27 November, so the timetable for providing written evidence is very tight. The Committee is also due to hear oral evidence on the Bill at three meetings in early December.
Further information on making written submissions on the Bill can be found here: http://www.parliament.uk/documents/HoL-Legislation-Office/Special-Public-Bill-Committees/Insurance-Bill-%5bHL%5d/Call-for-evidence.pdf.
Earlier this year, HFW published a Briefing on the Bill which can be found here: http://www.hfw.com/The-Insurance-Contracts-Bill-July-2014. As we stated in this Briefing, a draft version of the Bill proposed to give a policyholder a remedy in damages where an insurer failed to pay a claim within a reasonable time. Although this remedy was removed before the Bill was introduced to Parliament, we consider that it is likely to be discussed before the Committee and may be reinstated.
1.2. PRA proposes to collect reporting templates completed by Lloyd’s managing agents (UK)
The Prudential Regulation Authority (PRA) has published a further consultation on measures for the implementation of Solvency II.
One notable proposal, in the context of reporting rules relating to Lloyd’s, is a requirement for the Society of Lloyd’s to submit to the PRA the solvency and asset data returns that the Society receives from each managing agent. The PRA considers that collecting these returns from the Society would enhance the level of financial information that it receives in respect of Lloyd’s syndicates and would increase its knowledge of the business performance of each syndicate and the risks that they pose to the Lloyd’s market and Lloyd’s central assets. The proposed requirement would apply only to the Society, but the PRA has not ruled out imposing additional reporting requirements directly on managing agents.
The PRA’s consultation paper also contains:
- Rules on the appointment of actuaries and schemes of operations.
- Draft national specific templates which relate to Lloyd’s, and consequential changes to the existing reporting rules, including the introduction of the requirement described above.
- Several draft supervisory statements which set out the PRA’s expectations of firms in a variety of areas, such as regulatory reporting exemptions, the quality of capital instruments and the treatment of pension scheme risk.
A copy of the consultation paper can be found here: http://www.bankofengland.co.uk/pra/Documents/publications/cp/2014/cp2414.pdf. The consultation closes on 30 January 2015, following which the PRA will finalise and publish its rules on the implementation of Solvency II. Member states are required to transpose Solvency II into national law by 31 March 2015.