Current issues in insurance: Summer 2017
11 Sep 2017
Never mind that the summer holidays are drawing to a close, the good news is that it’s time for the latest edition of current issues in insurance – our regular series of publications in which our dedicated team of insurance specialists share their insights into some of the hot topics in the insurance market.
It’s been a very busy summer for the insurance industry and the team here at Hymans Robertson. The new insurance accounting standard, IFRS 17, has finally been published, we’ve seen the take-up of the new CMI16 model for longevity by some firms, and the annuity market continues to be a hive of activity, both in the bulk space and insurer to insurer transactions.
Our team goes from strength to strength, and we’re delighted to announce the arrival of Richard Purcell from Vitality. Richard will take a leading role in driving our services forward within the technical and innovations areas, with a particular focus on the protection and retirement markets.
As we move into the second half of 2017 (where is this year going?!), we look forward to continuing to work with all of you, and helping you to adapt and grow your business by taking advantage of all the technological, demographic, political and regulatory change around us.
If you haven’t already done so, please remember to register for our 3rd annual life seminar taking place on the 10th October (free to register, lunch included), where we will be focusing on the growth opportunities in insurance. Click here to register.
Brexit: Hard or soft, insurers need to act now
The likelihood of a hard Brexit may have reduced recently, but UK insurers undertaking business in other EU countries still face a predicament as to the basis of those operations after Brexit. We look at the options available to UK life insurers who currently have permissions to operate in other EU states.
Why we can’t afford to ignore InsurTech
It’s no secret that technology has significantly changed everyday life in the last few years. Some early participants in the InsurTech space have had transformational effects on traditional insurance models – this points to the need for all life and health insurers to have their own innovation strategies.
PRIIPs - There’s a new KID in town
EU regulations on packaged retail and insurance–based investment products (“PRIIPs”) have taken a long and winding path to becoming European law. A recent series of Q&A’s by the European Supervisory Authorities (ESA) has helped to provide clarity on some of the more technical points of the regulations. We look at some of the requirements for firms in a little more detail.
Time for a new approach to protection insurance?
Protection insurance in the UK has a very traditional and well understood sales model. However demographic movements are changing the status quo, which means that protection writers who want to grow their market share will have to develop products to meet very different customer needs.
Drawdown options – changing perceptions through innovation
The FCA recently revealed that since 2015 over half (53%) of pensions pots accessed have been fully withdrawn with the cash from over half of these fully withdrawn pots moved into other savings or investments. We’ve crunched the numbers to show how a pot of £20K left in a drawdown account would perform against a cash ISA over 5, 10 and 20 years.
Love it or loathe it, IFRS 17 is here
After more than a decade in the making, the International Accounting Standards Board has now published International Financial Reporting Standard 17: Insurance Contracts. Implementing IFRS 17 is likely to be as tough as the implementation of Solvency II – we’ve produced a whitepaper and webinar to equip you with the details and knowledge needed to ensure a smooth implementation and transition.
Managing unit-linked volatility: Unit shorting
The regulatory balance sheet under Solvency II is more complicated and volatile than under the previous solvency regime. With the first round of Solvency II reporting complete, now is a good time to consider options for managing balance sheet volatility. This article discusses managing the volatility of unit-linked business.
2017 risk transfer report
Despite a period of massive change, the bulk annuity market has performed well over the past 12 months and demand from DB pension schemes is only set to increase. But what different strategies have insurers been adopting and what does the future hold? Our 2nd annual risk transfer report takes a detailed look at the bulk annuity market and the insurers who serve it.