Official Journal of the European Union
Solvency II - Implementing Regulation on the calculation of technical provisions and basic own funds for Q3 2020 published in the Official Journal - 3 August 2020
Commission Implementing Regulation (EU) 2020/1145 of 31 July 2020, which lays down technical information for the calculation of technical provisions and basic own funds for reporting with reference dates for Q3 (30 June 2020 until 29 September 2020) under the Solvency II Directive (2009/138/EC), has been published in the Official Journal of the European Union.
The Implementing Regulation sets out the technical information to be used by reinsurers and insurers when calculating technical provisions and basic own funds for reporting with reference dates in Q3 2020.
The Implementing Regulation comes into force on 4 August 2020 and applies from 30 June 2020. The Commission adopted the Implementing Regulation on 31 July 2020.
Official Journal: Commission Implementing Regulation (EU) 2020/1145 on the calculation of technical provisions and basic own funds for Q3 2020 under Solvency II published in the Official Journal
European Insurance and Occupational Pensions Authority
Solvency II Single Rulebook - launched by EIOPA - 31 July 2020
The European Insurance and Occupational Pensions Authority (EIOPA) has launched its Solvency II Single Rulebook. The Single Rulebook is an online tool that aims to promote the consistent implementation of the Solvency II regulatory framework for insurance supervision.
EIOPA has also published a user guide and aims to expand the scope of the rulebook to include Q&As in the near future.
EIOPA Solvency II Single Rulebook
Press release
Financial Conduct Authority
COVID-19 - FCA publishes update on its High Court BI insurance test case - 31 July 2020
The FCA has updated its webpage on the progress of its High Court test case, which seeks a declaratory judgment about the meaning and effect of the wording of certain business interruption (BI) insurance policies in light of COVID-19.
The FCA has published draft transcripts of the seventh and eighth days of the trial, which ended on 30 July 2020.
FCA webpage on its High Court test case on the validity of BI insurance claims in light of COVID-19
COVID-19 - FCA publishes statement on non-damage BI insurance settlements and deductions - 3 August 2020
The FCA has published a statement on non-damage business interruption (BI) insurance settlements and deductions in relation to claims as a result of COVID-19. The FCA notes that it is becoming increasingly aware of policyholders’ concerns about how insurers are calculating non-damage BI insurance claim payments where insurers have already agreed liability. In particular, some insurers are making deductions for certain types of government support received by policyholders over the past few months.
The FCA confirms that where insurers have accepted liability, they should continue to handle and assess non-damage BI claims promptly and treat their customers fairly in accordance with Principle 6 of the FCA’s Principles for Businesses. Insurers should assess the appropriateness of deductions for some or all of each type of government support received by the policyholder on a case by case basis, with an assessment of: (i) the exact type and nature of the government support; (ii) how the policyholder used the support; and (iii) the type of policy and its precise terms, including any set methodology for calculating the value of a claim set out under the relevant section of the policy. That said, even where it is appropriate in principle to deduct amounts, “a single, uniform approach to deductions is unlikely to be appropriate”. Insurers are likely to need to consider the precise details of each policy, the claim and the use and application of the government support the policyholder received.
The FCA expects firms to take these matters into account and communicate accordingly with policyholders when making settlement offers and reaching settlement on relevant claims. If necessary, the FCA may intervene where firms do not appear to be meeting its expectations and treating their customers fairly on these points.
FCA statement on non-damage BI insurance settlements and deductions in light of claims following COVID-19
Civil Liability Act 2018 - FCA publishes statement on data provision - 4 August 2020
The FCA has published a statement on data provision under the Civil Liability Act 2018. The Civil Liability Act imposes a duty on insurers to provide information to the FCA about the effect that changes to the law under the Act will have on motor insurance premiums. The data to be provided covers three annual periods commencing on 1 April 2020 and finishing on 31 March 2023, and needs to be provided to the FCA as a single return by 1 October 2023.
The FCA intends to send out a survey to insurers in September 2023 that will enable them to inform the FCA whether they are in scope and to provide the necessary information.
FCA statement on the provision of data by insurers under the Civil Liability Act 2018
Please see the General section for an item on the FCA’s consultation on guidance for consumers on cancellations and refunds in light of COVID-19.
