Insurance UK

The Biggest Developments In Insurance In 2024

The financial watchdog has come under pressure this year from the Labour government to tackle the cost of insurance, which has soared because of rising claims caused by the ongoing repercussions from Brexit and the war in Ukraine.

FCA's 2024 Consumer Focus Still Has Firms Guessing

The Financial Conduct Authority shifted further toward results-based financial regulation in 2024 by requiring regulated companies to comply better with its Consumer Duty, forcing managers to make individual interpretations of the regime's often ambiguous requirements where more specific rules are missing.

Snap July 4 Election Leaves Pension Reform In Disarray

The government's decision to call a snap general election for July 4 has left the U.K.'s pension sector in limbo, experts say, with uncertainty over whether the next administration will continue with an ambitious reform program.

Plan To Recast £2.5T Pensions Sector Raises New Risks

The government unveiled a set of reforms Tuesday designed to tap the U.K.'s £2.5 trillion ($3.2 trillion) pension sector for investment in new technology startups — but experts say the shakeup could lead to an uncertain future for millions of workers saving for retirement.

February 04, 2025
Sustainable Growth Must Take Pensions Priority, LCP Says

Government plans to drive growth in the U.K. through redirected investment from retirement savings schemes must prioritize environmental concerns and sustainability, a consultancy said Tuesday.
February 04, 2025
MPs Launch Inquiry Into AI Use In Financial Services

A cross-party group of members of Parliament has started an inquiry into the use of artificial intelligence in financial services, after recent revelations about Chinese AI startup DeepSeek showed the market's volatility.
February 04, 2025
HSF Steers Reinsurance Broker Buy For Miller

Insurance broker Miller said it has agreed to acquire specialist reinsurance broker AHJ Holdings Ltd. for an undisclosed sum, reaching a "major milestone," in a deal guided by Herbert Smith Freehills LLP and Stephenson Harwood LLP.
February 04, 2025
3 Firms Advise On £25M Pension Deal For Redress Program

The U.K.'s financial compensation scheme has passed £25 million ($31 million) of its staff pension liabilities to Pension Insurance Corp. PLC, the insurer said, in a deal guided by Herbert Smith Freehills LLP, Eversheds Sutherland and Arc Pensions Law LLP.
February 04, 2025
CMS Guides £120M Pension Deal For Lufthansa

Airline carrier Lufthansa has offloaded £120 million ($150 million) of its U.K. pension scheme liabilities to Royal London, the insurer said, in a deal steered by CMS Cameron McKenna Nabarro Olswang LLP.
February 04, 2025
Jets Stranded Due To Economic War, All-Risk Insurers Say

A group of all-risks insurers told the High Court on Tuesday that losses linked to planes stranded in Russia after the invasion of Ukraine should be covered by war-risks insurers because they were a result of Russian counter-measures amid an "economic war."
February 04, 2025
FCA Warns Smaller Payment Firms Of Consumer Duty Failings

The City watchdog has warned smaller payments firms that they sometimes fail to act in the best interests of customers and have weaknesses in their financial crime controls.
February 03, 2025
All-Risk Insurers Demand War-Risk Payouts For Stranded Jets

Insurers that covered aircraft lessors whose planes were stranded in Russia after the invasion of Ukraine told a London court on Monday that other insurers that covered the lessors for war-related risks should pay out for the allegedly lost aircraft.
February 03, 2025
Pension Deal Demand To Be Unaffected By Surplus Reform

The government's plans to allow U.K. businesses to tap into £160 billion ($198 billion) of pension surpluses will be unlikely to significantly dent demand for insurance risk transfer deals in the near future, a ratings agency said Monday.
February 03, 2025
FCA Response To Critical Report 'Disappointing,' MPs Say

The Financial Conduct Authority's response to a highly critical parliamentary report has been lackluster and continues to demonstrate that the regulator is "in dire need of transformation," the MPs who penned the report said Monday.
February 03, 2025
EU Watchdog Warns That All Crypto Firms Are High Risk

The European Union's finance watchdog has briefed national regulators authorizing crypto-assets firms to consider every candidate high risk, particularly from money laundering.
February 03, 2025
Schroders Commits To Extracting Pension Surplus

Asset manager Schroders said that it has struck a deal to allow its staff retirement savings plan to run on as the government weighs regulation to allow businesses to extract surpluses from their pension scheme.
February 03, 2025
Watchdog Launches 1st Stage Of Probe Into SME Auditing

The accounting watchdog launched a study on Monday to gauge how effectively the audit market supports small and midsized businesses amid a wider campaign to improve the access of smaller companies to services in the sector that help to raise capital.
January 31, 2025
Brexit Five Years On: The Legal Landscape After Europe

Five years after the U.K. formally left the European Union, Law360 looks at how Brexit has changed the legal, regulatory and financial terrain.
January 31, 2025
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen another claim by Woodford investors against Hargreaves Lansdown in the widening £200 million ($248 million) dispute over the fund's collapse, a solicitor barred for his role in a suspected advance fee fraud face action by a Swiss wholesaler, and The Resort Group, which markets investments in luxury hotel resorts, hit with a claim by a group of investors. Here, Law360 looks at these and other new claims in the U.K.
January 31, 2025
EU Extends UK CCP Equivalence Regime By Three Years

The European Union's executive body said Friday it has adopted a decision to extend equivalence for U.K. central counterparties for three years until June 30, 2028, following agreement between the European Parliament and the Council of the EU.
January 31, 2025
Claims Management Sector Warned Over Misleading Adverts

The Financial Conduct Authority has written to claims management companies warning that it will respond to multiple cases of misleading advertising with new consumer protection measures.
January 31, 2025
FCA Launches Survey To Gauge Opinion On Its Work

The Financial Conduct Authority has launched its annual market survey of regulated firms to gauge industry opinion on its performance, which comes amid calls from the financial sector for more growth-geared regulation.
January 31, 2025
Banks, Insurers Told To Go Further On Managing Climate Risk

The regulatory arm of the Bank of England has said that the lenders and insurers it supervises have made progress on managing financial risks linked to climate change, but expects more ahead of a planned update to its expectations this year.
January 31, 2025
5 Years On, Dust Settles On UK Insurance's Brexit Upheaval

The insurance market faced major upheaval when the U.K. crashed out of the European Union five years ago without a deal on financial services, which started a transition to a new way for British insurers to compete in Europe.
January 30, 2025
Marsh Loses Appeal To Ax Chemical Co.'s Negligence Claim

Marsh Ltd. has failed in its bid to strike out a global chemicals group's claim that the insurance broker negligently arranged faulty motor insurance cover after a London appeals court said Thursday that the allegations need more clarity.
January 30, 2025
Osborne Clarke Guides Aviva's £23M Pension Deal

Insurance giant Aviva has taken on £23 million ($28.7 million) of retirement savings liabilities from The Colthrop Board Mill Pension Scheme in a deal guided by Osborne Clarke, according to lead advisers on the transaction Thursday.
January 30, 2025
FCA Says Ban On Pension Advice Contingent Charging Works

The Financial Conduct Authority said Thursday that almost 200 financial advisers stopped offering pension transfer services after it changed its rules on contingent charging five years ago.
January 30, 2025
Growth Stocks Need Rule Changes, City Group Says

The government and regulators need to rewrite the rulebook for growth stocks in share trading, including an urgent review of "hampering" regulations like the Consumer Duty and "Dear CEO" letters, a leading City trade body said Thursday.
January 30, 2025
UK Gov't Vows To Overhaul Pension Lifeboat Levy

The government said Thursday that it is considering allowing the Pension Protection Fund more flexibility over how it sets its levy, as it looks at further measures to boost economic growth.

Editor's Picks

Top Court Ruling In 'Whiplash' Test Case Could Hit Premiums

Personal injury claimants could get higher payouts from their motor insurance as a result of a test case ruling at Britain's highest court on Tuesday, although analysts warn that insurers could respond with higher premiums to cover the cost of bigger claims.
FCA Begins Crackdown On Poor-Value Insurance Products

The move by the Financial Conduct Authority to restrict sales of guaranteed asset protection insurance is a sign of a faster approach to market intervention, and could lead the regulator to scrutinize other underperforming products, consultants say.
Post-Election UK Pension Changes Could Be In The Fine Print

Regulatory lawyers are not expecting radical overhaul in pension policies if the government changes after this year's general election. But lawyers say that signals in the opposition Labour Party's policy language could hint at possible shifts in investment priorities for retirement savings.

Expert Analysis

How GCs Can Protect Cos. From Geopolitical Headwinds

Geopolitical uncertainty is perceived by corporate leaders as the biggest short-term threat to global business, but many of the potential crises are navigable if general counsel focus on what is being said about a company and what the company is doing, says Juliet Young at Schillings.
Navigating PRA's Data Request For Crypto-Asset Exposure

The Prudential Regulation Authority’s recent data request for details on financial institutions' crypto-asset exposures should be used as an opportunity for firms to update their compliance procedures, and consider the future use of crypto-assets and related services, says James Wickes at RPC.
Key Points From FCA Financial Crime Guide Updates

The Financial Conduct Authority’s recent updates to its financial crime guide reflect the regulator’s learnings on sanctions following Russia's invasion of Ukraine, highlighting and clarifying consumer duty, anti-money laundering and other compliance expectations, say lawyers at Womble Bond.
Why Nonfinancial Misconduct Should Be On Firms' Radar

Following a recent Financial Conduct Authority survey showing an increase in nonfinancial misconduct, the regulator has made clear that it expects firms to have systems in place to identify and mitigate risks, says Charlotte Pope-Williams at 3 Hare Court.
Insider Info Compliance Highlights From New FCA Guidance

The Financial Conduct Authority's recent guidance to companies on identifying inside information clarifies the regulator's expectation of case-by-case assessment, helpfully highlighting that abuse of U.K.-regulated markets can arise earlier than some might think, say lawyers at Sullivan & Cromwell.
Interpreting Newly Released Consumer Fraud Complaints Data

The Financial Ombudsman Service’s latest complaint data focuses on scams and customer service, and demonstrates that as fraud is becoming rapidly more complex, financial regulators need to acknowledge that technology is here to stay and work together with firms to protect consumers, say lawyers at RPC.
Anticipating The UK's Top M&A Trends In 2025

Conversations with market participants are focusing on five key questions about 2025's transactional markets, ranging from issues of artificial intelligence, to the boom in takeovers and increased regulatory scrutiny, says Layla D’Monte at King & Spalding.
Hawaii Climate Insurance Case Is Good News For Energy Cos.

The Hawaii Supreme Court's recent ruling in a dispute between an oil company and its insurers, holding that reckless conduct in the context of activities that can cause climate harms is covered by liability policies, will likely be viewed by energy companies as a positive development, say attorneys at Fenchurch Law.
The EU AI Act's Impact On Global Financial Regulation

The European Union’s new Artificial Intelligence Act, representing lawmakers’ first comprehensive attempt to regulate AI and giving special attention to the financial services sector, hopes to influence global legal and regulatory frameworks to maintain access to the EU market, say lawyers at Goodwin.
FCA Survey Results Reveal Rise In Nonfinancial Misconduct

After a Financial Conduct Authority survey recently reported a significant rise in nonfinancial misconduct, there are a number of preventive steps firms should take to create a healthy workplace environment and mitigate the risk of increased regulatory scrutiny, say lawyers at WilmerHale.
FCA's Broad Proposals Aim To Protect Customer Funds

The Financial Conduct Authority’s proposed changes to payments firms’ safeguarding requirements, with enhanced recordkeeping and fund segregation, seek to bolster existing regulatory provisions, but by introducing a statutory trust concept to cover customers’ assets, represent a set of onerous rules, says Matt Hancock at Greenberg Traurig.
Modernizing UK Trade Settlement Standard: The Road Ahead

Andrew Tsang and Tom Bacon at BCLP consider the rationale and challenges of a potential U.K. trade settlement acceleration, part of an initiative to modernize the financial market infrastructure, and suggest that incorporating distributed ledger technology as a synchronized recording system would facilitate the move.
A Look At UK, EU And US Cartel Enforcement Trends

The European Union, U.K. and U.S. competition agencies' recently issued joint statement on competition risks in generative artificial intelligence demonstrates increased cross-border collaboration on cartel investigations, meaning companies facing investigations in one jurisdiction should anticipate related investigations in other jurisdictions, say lawyers at Latham & Watkins.
What Green Claims Directive Proposal Means For Businesses

With the European Union’s recent adoption of a general approach to the proposed Green Claims Directive, which will regulate certain environmental claims and likely be finalized next year, companies keen to publicize their green credentials have even more reason to tread carefully, say Marcus Navin-Jones and Juge Gregg at Crowell & Moring.
EU Reports Signal Greenwashing Focus For Financial Sector

Reports from the European Supervisory Authorities on enforcement of sustainability information, plus related guidance issued by the European Securities and Markets Authority, represent a fundamental change in how businesses must operate to maintain integrity and public trust, say Amilcare Sada and Matteo Fanton at A&O Shearman.