2022 proved to be as busy for insurance coverage corporations and regulators as we predicted final January. But extra change may be anticipated in 2023.
In Brexit-related information, the Treasury is taking ahead plans to vary the UK’s Solvency II regime. Its announcement coincided with the Autumn assertion, signifying the significance attributed to Solvency II reforms inside the Authorities’s wider post-Brexit plans for the financial system.
Solvency II reforms are simply one in all a collection of regulatory modifications proposed by the Authorities in its flagship Monetary Companies and Markets Invoice (FSM Invoice). In tandem with the FSM Invoice, the Treasury has introduced a collection of reforms, often called the Edinburgh Reforms, that are equally aimed toward driving progress and competitiveness within the monetary providers sector post-Brexit. (See our latest weblog publish and webcast collection for extra particulars.)
In the meantime, the FCA has printed closing guidelines and steerage on the new Shopper Obligation in what it describes as a “paradigm shift” in its expectations of corporations. The problem for corporations to satisfy implementation deadlines of 31 July 2023 for brand new and current merchandise and 31 July 2024 for closed services and products stays appreciable.
Unsurprisingly, ESG continues to be one other key focus, with ESG-related transparency set to be the theme for the following 12 months. In early January, the PRA’s assertion of supervisory priorities for 2023 confirmed its continued give attention to the monetary dangers that local weather change presents for the sector.
Different priorities for the PRA embody consulting on the introduction of a decision framework for insurers and on a brand new regulatory framework for variety, equality and inclusion (DEI).
We think about these, and different, points extra totally right here.