From the Editor: Kari McCormick, September 2018
A message from the Editor of the Insurance Committee.
Digital regulatory reporting - the first step towards digital regulation
In November 2017 a group of technologists, academics, professional advisers and regulators succeeded in proving at a TechSprint instigated by the Financial Conduct Authority and Bank of England that a regulatory requirement contained in the FCA Handbook could be turned into a language that machines can understand. Amongst the myriad regulatory developments of late, news of this project has largely gone under the radar; but do not underestimate its significance. The FCA and the Bank of England now have confirmation that automated digital regulatory reporting is a possibility and the question they are now considering is; how might it be implemented?
Interpretation of Big Data by InsurTechs
In this article, readers will find the improvements realised in the insurance market thanks to technological developments as well as other promising aspects of technology in the InsurTech sector yet to be discovered.
InsurTech - AI and insurance
'InsurTech' is leading change in the global insurance industry. AI can provide automated solutions for claims handling and provide comprehensive risk assessments and identify gaps in cover. The legal industry must keep pace with the legal and regulatory implications of this new technology.
Transactional liability insurance - facilitating international corporate transactions and getting your claims paid
Increasing cross-border corporate transactions volume as well as the need for increased financial flexibility demanded by private equity firms has led to a greatly increased use of transaction liability insurance. The history of transaction liability insurance and its most common variant representation and warranty insurance are addressed, as well as claims issues such as the valuation of damages under the policies, and typical tactics in the claims process. The article provides a useful overview from varied perspectives for participants in the cross-border corporate transactions arena.
Micro-insurance regulation in Zimbabwe - regulatory and supervisory challenges
In 2018, Zimbabwe saw the first attempt to formally regulate micro-insurance by introducing registration laws but it is questionable whether the current regulatory framework adequately addresses the challenges. Regulation should ensure there are definitions of micro-insurance, the basis of risk, technical provisions requirements, product approval processes, reporting, capital requirements, ongoing supervision, consumer protection, climate change provisions, privacy and data protection and market conduct requirements.
Developments in the regulation of the Philippine insurance industry capital regime
This paper details the developments in law, rules and regulations with regard to the Philippine insurance industry capital regime. It illustrates the progress of said developments from the inception of the capital regime through the enactment of Act 2427 that took effect on July 1, 1915 up to the most recent statutory net worth requirements and the Risk-Based Capital 2 Framework. Towards the end of the paper, the impact of the new capital regime on the future of the Philippine insurance industry is also described.
The transposition of the Insurance Distribution Directive in the UK
This article outlines the approach the UK regulator has taken to transposing the requirements of the Directive into its rulebook.
The transposition of the Insurance Distribution Directive in Italy
We discuss the main changes to the current framework, such as the subjective scope of the regulation in order to encompass all sellers of insurance products.
Italy - new rules applicable to medical professional liability insurance
Law n. 24/2017 has the merit of governing with clarity the professional liability of healthcare professionals and of private or public clinics and hospitals, establishing, among others, specific insurance obligations, the content of insurance policies and their relative limits, caps and deductibles. Furthermore, its application will imply a reduction of insurance costs and the optimisation of public resources by combating the amount of medical disputes and curbing the phenomenon of defensive medicine.
The longevity revolution - impact on the Brazilian insurance market
The increase in longevity has a direct impact in the insurance market, mainly regarding health insurance coverage, and is challenging insurers to review their actuarial reserves and calculation of loss ratios. Should the pursuit of longevity become a separate risk? This article addresses the increase of life expectancy in Brazil and the issues that Brazilian insurers will have to confront in their relationship with customers and to fight the judicialisation of questions related to coverage, in light of the excessive protection to insureds afforded by the Brazilian courts.
Financial Services and Markets Act Part VII - Legacy Transfers: Part 2
Notwithstanding differences in everyday word choice and meaning, the American legal system is structured upon the historically developed wisdom of centuries old English law, most often called the 'Common Law'. Time and experience have informed the development of the Common Law, as well as the eventual development of the distinct but increasingly complementary regulatory systems in both nations. Once again, the US is following the UK's lead, this time in establishing mechanisms for the transition of insurance obligations from one entity to another.
2016 substantive report: subrogation
This IBA Insurance Committee project addresses insurers’ rights of recovery (or subrogation/recourse) – an area where jurisdictional differences could catch out the unwary. The report is available as one PDF or as individual country downloads.
From the Chair - Insurance Committee newsletter article, July 2015
I am very pleased to present our latest newsletter, including eight articles from seven different jurisdictions. Many thanks to those who have contributed, and a reminder to all who haven't – please send your articles to John Toriello, our newsletter editor, so that he will hopefully be able to publish another newsletter before the end of the year!
A view from the inside: conversations with people in the insurance industry, Insurance Committee newsletter article, July 2015
In this feature, your editor, John Toriello, interviews individuals active in the insurance industry to try and give you another view on important issues and industry concerns. We are honoured to start our series by interviewing Robert Robinson, the Group General Counsel at Amlin plc,where he has overall responsibility for all legal matters involving the Amlin group.
Insurance against (administrative) fines under Austrian Law, Insurance Committee newsletter, July 2015
As Austrian law does not stipulate for a respective legal provision, it was up to the Supreme Court of Justice, Oberster Gerichtshof, to set boundaries over the past almost 100 years. This article shall highlight considerations of whether such coverage would be tolerable under Austrian law or whether one has to accept that this is an uninsurable risk, and the following provides a survey of the relevant OGH judicature in this respect.
The introduction of class actions in French law, Insurance Committee newsletter, July 2015
This article considers the Consumer Act No 2014-344, which took effect on 18 March 2014 and introduces into French law the possibility for consumers to initiate class actions in France.
Know Your Regulator, Insurance Committee newsletter, July 2015
In an era when regulation is surpassing law on the radars of most in-house counsel and risk managers, knowing your regulator has never been more important. How do we best navigate our regulators in order not only to get the best results, but also to preserve and continue good relations? In this article, we look at a handful of key insurance regulators around the globe and consider, not just the facts, but also the softer issues that are often critical to making the right judgement.
Italian Insurance Undertakings: now eligible to perform direct credit financing, Insurance Committee newsletter, July 2015
After a long and highly discussed debate, Italian Insurance Undertakings has been granted the possibility to perform the activity of direct credit financing of companies as an investment option for the cover of technical provisions.
Applicable Law and Jurisdiction in International Reinsurance Contracts from a Swiss Perspective, Insurance Committee news, July 2015
This article looks at the Swiss Federal Supreme Court's judgment on international reinsurance contracts, the issues of competence in reinsurance disputes and the applicable law to reinsurance contracts from a Swiss perspective.
Foreign defendants benefit from changes in US jurisdictional jurisprudence, Insurance Committee newsletter, July 2015
This article looks at key cases decided in the the past year that have dramatically limited the jurisdictional reach of courts in the United States (US) over foreign entities under general jurisdiction concepts.
Washington's unprecedented bid to supplant state insurance regulators, Insurance Committee newsletter, July 2015
In October 2013, PrudentialFinancial Inc dropped its fight against being designated a systemically important financial institution by the United States Treasury Department's Financial Stability Oversight Council. When the FSOC named Prudential and AIG as SIFIs in June 2013, it marked the first step in a process that could lead the US federal Government to directly regulate the solvency of state-licensed insurers as to all lines of insurance.