Insurance regulatory news, November 2020 # 2

Recent regulatory developments of interest to insurers and their intermediaries. See also our General regulatory news in the Related Materials links.

Contents

• COVID-19: FCA update on business interruption insurance test case
• IDD: EIOPA survey
• Comparable outcomes, liquidity metrics and resolution: IAIS consultations

COVID-19: FCA update on business interruption insurance test case

On 11 November 2020, the UK Financial Conduct Authority (FCA) updated the webpage on its business interruption insurance test case. The FCA has given links to:

• the live-stream of the Supreme Court appeal hearing. The Supreme Court will sit between 11.00 am and 4.00 pm on 16 November 2020 and between 10.30 am and 4.00 pm on 19 November 2020;
• the written cases for the appeals in the Supreme Court of the FCA, Arch Insurance (UK) Ltd, Argenta Syndicate Management Ltd, MS Amlin Underwriting Ltd, Hiscox Insurance Company Ltd, QBE UK Ltd, Royal & Sun Alliance Insurance plc and Hiscox Action Group;
• the written cases responding to the above appeals of the FCA, Arch Insurance (UK) Ltd, Argenta Syndicate Management Ltd, MS Amlin Underwriting Ltd, Hiscox Insurance Company Ltd, QBE UK Ltd, Royal & Sun Alliance Insurance plc, Zurich Insurance plc and Hiscox Action Group;
• the order of the Supreme Court granting permission to appeal;
• the agreed Statement of Facts and Issues, which sets out the history of COVID-19 and the government response, the background to the proceedings, and the issues being appealed; and
• the directions agreed between the parties to the appeal regarding steps leading up to the appeal hearing and other procedural matters.

IDD: EIOPA survey

The European Insurance and Occupational Pensions Authority (EIOPA) has published a survey on the application of the Insurance Distribution Directive (IDD). The survey is the first step in EIOPA's preparation of a report assessing the application of the IDD that it is required to prepare under Article 41(4) of the IDD.

Responses to the survey are requested by 1 February 2021. EIOPA may launch a second survey at a later stage.

Comparable outcomes, liquidity metrics and resolution: IAIS consultations

The International Association of Insurance Supervisors (IAIS) has published the following three documents for consultation:

• Draft definition of comparable outcomes and high-level principles to inform the criteria that will be used to assess whether the AM provides comparable outcomes to the Insurance Capital Standard (ICS): consultation closes on 22 January 2021;
• Development of Liquidity Metrics: Phase I – Exposure Approach: consultation closes on 7 February 2021; and
• Application Paper on Resolution Powers and Planning: consultation closes on 5 February 2021.

[View source.]