Current Issues in Insurance and Financial Services - Autumn 2023
01 Nov 2023 - Estimated reading time: 5
In this latest edition of current issues, we bring you insights into the UK insurance and financial services market, including:
- Our recent newsflash on the Solvency UK Consultation.
- ESG considerations for with-profits funds.
- Implications of the changes in Bermuda's regulatory regime.
Newsflash - Solvency UK consultation
The much-anticipated second PRA consultation paper, which sets out proposed changes to the Matching Adjustment (“MA”) framework, was published on 28 September 2023. This second consultation paper proposes a number of reforms aiming to enable broader and quicker investment by insurers in their MA portfolios while improving responsiveness to risk and enhancing firms’ responsibility for risk management.
In this newsflash, we discuss the key changes being proposed and their potential impact on insurers.
ESG considerations for with-profits funds
ESG is a growing focus for the life insurance industry. While the direct impact on with-profits funds has typically been relatively small, the relative discretion over with-profits investment strategy and continued focus on ensuring good outcomes for customers mean there are a number of key ESG considerations for with-profits funds.
We explore these considerations in our blog.
Consumer Duty and navigating its impacts on consumers
Consumer Duty was implemented for open business on 31 July 2023 and for legacy business will be implemented on 31 July 2024.
In this blog, we discuss further how firms can navigate the impact on consumers.
Understanding Longevity: Pension risk transfer and longevity assumptions in the Netherlands
In this episode on Hymans Robertson on... Understanding Longevity, we are joined by Stijn Hoeksma and Joroen Bogers from the consulting firm Sprenkels. We discuss the recent challenges to the Dutch pensions and setting longevity assumptions in the Netherlands.
Transition Plan Taskforce launches Gold Standard for Transition Plans
The Transition Plan Taskforce published its final Disclosure Framework on 9 October 2023, designed to provide guidance on the gold standard of transition plans.
In this newsflash, we summarise the framework and recommendations for firms. To learn more, download our newsflash below.
Overcoming Climate-Related hurdles in the Property & Casualty market
How do unconscious biases influence our ability to identify opportunities and risks arising from climate change?
In this article, we highlight how an understanding of cognitive biases can support investment and underwriting decisions, facilitating the journey to net zero for Property and Casualty (P&C) insurers.
The implications of the changes in Bermuda's regulatory regime
The BMA has issued guidance on the statutory reporting regime, new rules on the Insurance Group Solvency Requirement and guidance on making adjustments under section 6D of the Insurance Act under the three routes: simple, simple-complex and complex.
Our blog describes some of the key developments and considers the implications that the change in regulatory regime may have both on Bermudan (re)insurers and the wider insurance industry.
Risk sharing - an age-old solution to the old age problem
Millions of people in the UK are heading towards retirements which are worse than their parents’ generation. The balance of risk has shifted fundamentally to DC savers.
Join us on 2 November for a webinar which will look at the needs of customers and the benefits of the different risk sharing solutions available to meet them. We will explore the practicalities of implementing them – what can be delivered today and what needs to change for delivery in future.
If you would like to discuss any of these topics with one of our specialists, please get in touch.