Recent regulatory developments of interest to insurers and their intermediaries. See also our General regulatory news in the Related Materials links.

Contents

• COVID-19: FCA update on business interruption insurance test case
• Guiding principles for general insurance pricing: ABI and BIBA implementation reports
• Brexit: European Commission updates readiness notice for insurance

COVID-19: FCA update on business interruption insurance test case

On 13 and 15 July 2020, the UK Financial Conduct Authority (FCA) updated its webpage on the High Court test case concerning business interruption insurance. Among other things, the FCA has published skeleton arguments for the trial commencing on 20 July 2020, various documents consequential to the second case management conference on 26 June 2020, and a list of affected insurers and policies with claims that may be affected, which it will update going forward if appropriate.

The FCA has also published a trial timetable. The trial will take place from 20 to 23 and 27 to 30 July 2020. The trial can be viewed live via a link on the FCA's webpage.

Guiding principles for general insurance pricing: ABI and BIBA implementation reports

The Association of British Insurers (ABI) and the British Insurance Brokers' Association (BIBA) both published reports of the findings from reviews of their members' implementation of the guiding principles and action points for general insurance pricing (GPAPs).

Overall, the ABI has found that its members have implemented the GPAPs successfully and they are having a positive impact on customers.

BIBA notes that most of its members are unable to influence pricing in any way. However, they are in a unique position as agent of both the customer and the insurer to help promote the GPAPs, and act as a helpful go-between at renewal in negotiating renewal terms. It has identified very positive progress in its members' implementation of the GPAPs. Most of the broker firms surveyed have either incorporated GPAPs into their board ethos, fully implemented GPAPs into their business, or intend to do so shortly. Brokers reported that they have tended not to see large price swings since GPAPs was introduced, and that insurers have made "great strides" to bring new business and renewal pricing into line.

BIBA hopes the FCA will note the positive impact of GPAPs. It considers that the FCA's product oversight and governance (POG) rules, supplemented by the FCA's work on general insurance distribution chains, will go some way to resolving ongoing pricing issues.

Brexit: European Commission updates readiness notice for insurance

The European Commission has published an updated version of its Brexit readiness notice for insurance: Notice to stakeholders: withdrawal of the UK and EU rules in the field of insurance/reinsurance. This replaces the version of the notice published in February 2018.

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