The PRA’s consultation on funded reinsurance is a welcome development. This is an area in which the PRA has signalled interest for quite a long time, and clarity on its expectations is helpful.
A number of the proposals will be familiar to insurers, albeit they will likely lead to some increased formality and documentation. In
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The scope of cover for co-insureds may not always be as it seems
By Catriona
The Court of Appeal in its judgment in the appeal of FM Conway Ltd v Rugby Football Union & Ors [2023] EWCA Civ 418 has endorsed the principle that insured parties under a joint names insurance policy are not necessarily all insured to the same extent, even where the policy itself appears to be silent…
Mistake not established in determining scope of exclusion
By Catriona
The Commercial Court judgment in Project Angel Bidco Ltd (in Administration) v Axis Managing Agency Ltd [2023] EWHC 2649 (Comm) is the latest addition to a small but growing body of English case law regarding the operation of warranty and indemnity insurance (W&I) policies and claims made against such policies (see our articles on previous…
Carillion NED “test case” proceedings dropped – a reminder about D&O insurance
By Catriona
The Insolvency Service (IS), acting on behalf of the Secretary of State for Business and Trade, commenced disqualification proceedings against five former non-executive directors (NEDs) of Carillion plc in January 2021, following the compulsory liquidation of the Carillion Group in January 2018. Last month on the eve of trial, the IS discontinued its disqualification proceedings…
D&I in the UK financial sector – driving change
The FCA has published proposals for a new regulatory framework in respect of diversity & inclusion in the financial sector (FCA CP23/20). The PRA has also published its own proposals (PRA CP18/23) for PRA-regulated firms (together, the “Consultations“).
The FCA and PRA argue that greater diversity and more inclusion can improve outcomes for consumers and…
PRA consults on matching adjustment reforms: new-found freedoms or simply different chains?
The PRA’s latest consultation on reforming the UK’s insurance regulatory regime proposes a number of changes to the matching adjustment rules. This is the second PRA consultation to follow the UK Government’s Solvency II review, which confirmed that the post-Brexit Solvency II framework should be better aligned to the structural features of the UK…
Practical Law insurance column by Grant Murtagh: October 2023
In the latest instalment of his insurance column for Practical Law, Grant Murtagh draws together some political and regulatory developments to focus on a potentially significant shift in the approach to investments by life insurers and pension funds in the UK. In particular, Grant focuses on the impact that these regulatory changes could have…
UK Insurer Resolution Regime – HMT response to consultation published
On 2 August 2023 HM Treasury published the response to its January 2023 consultation on a new Insurer Resolution Regime (IRR).
In its consultation HM Treasury set out its proposal for legislative requirements that would give regulators additional tools and powers to manage the failure of (re)insurers in an orderly manner (to “resolve” an entity)…
Food for thought – no finding of breach in W&I insurance claim
By Catriona
June saw the second-ever reported judgment in a claim under a Warranty & Indemnity (W&I) insurance policy handed down by the English Courts: Finsbury Foods Plc v Axis Corporate Capital Ltd & Ors [2023] EWHC 1559 (Comm) (the first being Ageas (UK) Ltd v Kwik-Fit (GB) Ltd [2014] EWHC 2178 (QB)).
Given the lack…
Court of Appeal considers the issue of insurable interest
By Catriona
The judgment in the appeal of Quadra Commodities S.A. v XL Insurance Company SE and Others [2023] EWCA Civ 432 sheds some light on determining whether there is an insurable interest under a policy of insurance.
BACKGROUND
The Claimant is a commodities trading and logistics company, specialising in the trade of agricultural commodities. Under a…