ABI impatient over whiplash consultation
by Gill Montia
Story link: ABI impatient over whiplash consultation
The Association of British Insurers (ABI) is calling on the Government to get on and publish its consultation on the UK’s whiplash epidemic. Earlier this year, ministers agreed to consult on proposals to increase the small claims track limit for personal injury claims and introduce more independent medical experts to assess whiplash claims. According to [...]
NEST consults on proposed scheme changes
by Gill Montia
Story link: NEST consults on proposed scheme changes
NEST (The National Employment Savings Trust) is consulting on proposed changes to its scheme rules, in the light of latest pension legislation. The consultation covers various technical items pertaining to NEST’s rules including: An amendment to the definition of “minimum contributions”. Removing the requirement for a self-enrolling member to sign terms and conditions. Amending the [...]
Government consults on insurers and financial stability
by Gill Montia
Story link: Government consults on insurers and financial stability
The Government has launched a consultation on proposals aimed at ensuring that if parts of the financial system other than banks run into trouble, they can fail in a way that does not threaten financial stability, without requiring taxpayer support. The consultation focuses on insurers, investment firms and financial holding companies, central counterparties and other [...]
DWP redrafts pension auto-enrolment regulations
by Gill Montia
Story link: DWP redrafts pension auto-enrolment regulations
The Department for Work and Pensions (DWP) has issued draft regulations on the workplace pension reforms that come into force next year. New legislation requires employers to enrol workers in a pension scheme and contribute into it from 2012 and the DWP’s latest amendments should make it easier for employers to understand and fulfil their [...]
FSA on “uncertainty” of Solvency II timeline
by Gill Montia
Story link: FSA on “uncertainty” of Solvency II timeline
In its 2010/11 Annual Report, published yesterday, the Financial Services Authority (FSA) comments that delays to the timeline for Solvency II have affected its own consultation process and shortened the window for implementation. As a result, the regulator is looking for ways to manage the “uncertainty”, while continuing to contribute to the development of the [...]
ABI welcomes FSA guidance for comparison websites
by Gill Montia
Story link: ABI welcomes FSA guidance for comparison websites
The Association of British Insurers (ABI) has welcomed the Financial Services Authority’s (FSA) proposed guidance for price comparison websites that sell general insurance. The ABI produced voluntary good practice guidance in 2009, and the FSA is now asking firms to: Review their regulated activities, ensure they are appropriately authorised or otherwise exempt. Ensure they only [...]
BIBA backs anti-discrimination signposting proposals
by Gill Montia
Story link: BIBA backs anti-discrimination signposting proposals
The British Insurance Brokers’ Association (BIBA) has pledged its support for the Government’s signposting proposals, which are aimed at maximising the likelihood of older customers finding insurance. Signposting is a system whereby brokers and insurers will direct people to a suitable provider should they be refused cover on the basis of age, and the proposals [...]
Key highlights: civil justice reform proposals
by Gill Montia
Story link: Key highlights: civil justice reform proposals
Justice Secretary, Ken Clarke, has unveiled proposed reforms to the civil justice system including changes to the “no win, no fee” agreements that have been blamed for soaring car insurance premiums. The proposals, which have been launched for public consultation, include ending the recoverability of success fees and awarding successful claimants a 10% uplift in [...]
FSA sets out with-profits communication issues
by Gill Montia
Story link: FSA sets out with-profits communication issues
In its 2011/12 business plan, published yesterday, the Financial Services Authority (FSA) says it will be following up on proposals to strengthen the effectiveness of its with-profits regime. In particular, the regulator will consult further in 2011 on policyholder communications, having identified “significant weaknesses” in the quality of consumer communications. The FSA states: “We do [...]
PRA to adopt “less intensive” supervisory approach for insurers
by Gill Montia
Story link: PRA to adopt “less intensive” supervisory approach for insurers
In its consultation document on the new regulatory regime published yesterday, the Government has confirmed that the general principle underpinning its model of dual regulation will apply to the insurance industry. That is to say, the conduct of business and consumer protection issues are the preserve of the Financial Conduct Authority (FCA), while the Prudential [...]
Proposed Solvency II amendments surprisingly wide ranging
by Gill Montia
Story link: Proposed Solvency II amendments surprisingly wide ranging
Towers Watson is suggesting that proposed amendments to the Solvency II Directive from Omnibus II include transitional measures that seem far more wide ranging than had previously been alluded to in QIS5, and other discussions. The professional services firm’s senior consultant, Naren Persad, comments: “The Commission is taking a sensible precaution in giving itself the [...]
Treasury consults on “simple” financial products
by Gill Montia
Story link: Treasury consults on “simple” financial products
The Treasury wants insurers, banks and other financial services providers to come up with a range of “simple” products that will help consumers become more responsible. In a consultation document published yesterday, Financial Secretary to the Treasury, Mark Hoban MP, set out the proposals commenting: “The Government is committed to helping consumers take responsibility for [...]
Government consults on annuity reforms
by Gill Montia
Story link: Government consults on annuity reforms
The Government has launched an eight-week consultation on proposals to remove the requirement to turn pension savings into an annuity by the age of 75. The requirement has existed since 1976, when the average life expectancy of a healthy 65 year-old male was 13 years, but with annuity rates having plummeted during the credit crisis [...]
FSA backs RDR with new ethical standards
by Gill Montia
Story link: FSA backs RDR with new ethical standards
The Financial Services Authority (FSA) has published proposed new requirements on competence which place more emphasis on standards of ethical behaviour, for those carrying out retail activities. The new measures clarify how approved persons should demonstrate a good standard of ethical behaviour, including taking responsibility for their own level of competence. The proposed changes would [...]
FSA consults again on PPI reforms
by Gill Montia
Story link: FSA consults again on PPI reforms
The Financial Services Authority (FSA) has published feedback on its plans to reform the Payment Protection Insurance (PPI) market and at the same time announced a further consultation on a revised package of measures aimed at ensure customers are treated consistently and fairly, either when buying new PPI policies or making a complaint about an [...]
ABI opposes Employers’ Liability Insurance Bureau
by Gill Montia
Story link: ABI opposes Employers’ Liability Insurance Bureau
The Association of British Insurers (ABI) has voiced concerns over proposals to set up an Employers’ Liability Insurance Bureau (ELIB). Details of the scheme, which would act as a fund of last resort for employees injured at work – operating in a similar way to the Motor Insurance Bureau, have been outlined in a Department [...]
Insurers invited to consult on actuarial standards
by Gill Montia
Story link: Insurers invited to consult on actuarial standards
The Board for Actuarial Standards (BAS) has published a consultation paper setting out proposals for a technical actuarial standard (TAS) on insurance. The body, which forms part of the Financial Reporting Council, says the move is aimed at ensuring that actuarial information provides the best possible support to management, governing bodies, policyholders, shareholders and others [...]
ABI launches consultation on Critical Illness Cover
by Gill Montia
Story link: ABI launches consultation on Critical Illness Cover
The Association of British Insurers (ABI) has launched a three-month consultation on changes to its Statement of Best Practice for Critical Illness Cover. The Association is proposing to replace the Total Permanent Disability (TPD) clause included in critical illness policies with a set of carefully worded definitions. The aim is to ensure clarity for consumers [...]
FSA relaxes proposals on compensation payments for mis-selling
by Gill Montia
Story link: FSA relaxes proposals on compensation payments for mis-selling
The Financial Services Authority (FSA) is reconsidering its proposals on the use of the surpluses in with-profits funds (also known as inherited estates) to compensate policyholders who are the victims of mis-selling. Consumer groups have been petitioning for a change in the rules for years, arguing that shareholders should bear such costs. Last year, the [...]
BIBA speaks out on proposed FSA fees and levies
by Gill Montia
Story link: BIBA speaks out on proposed FSA fees and levies
The British Insurance Brokers’ Association (BIBA) is not happy about the proposals contained in the Financial Services Authority’s (FSA) consultation paper CP09/7, which contains regulatory fee and levy rate proposals for 2009/10. BIBA’s chief executive, Eric Galbraith, acknowledges that the FSA has an ever-growing workload and that the fees for 10,000 small firms have been [...]
