Edition Highlights:

  • The Monetary Authority of Singapore’s Director and Department Insurance Head Lee Keng Yi delivered a speech on steps taken by agency to support innovation.
  • Insurance Europe discusses innovation in insurance.
  • The European Insurance and Occupational Pensions Authority publishes a consultation paper on the proposed guidelines under the Insurance Distribution Directive on Complex Insurance Based Investment Products.

Current coverage period: Through Feb. 28, 2017

Note: Anticipated business impact for covered regulations is shown using the following rating legend:       (*Low) (** Medium) (*** High)

CURRENT REGULATIONS:

International Financial Reporting Standards (IFRS) (**):
Effect of board redeliberations on the 2013 Exposure Draft Insurance Contracts
Publication Date: February 22nd 2017

Regulation Type: Guidance

Category: Accounting

The International Accounting Standards Board (IASB) published a summary of the effect of board re-deliberations on the Exposure Draft (ED) Insurance Contracts (i.e. IFRS 17) since 2013, including the last board meeting held on February 22, 2017. This paper discusses where and how the proposals in the ED would change as a result of the IASB tentative decisions to date. The IFRS 17 standard is expected to be finalized and published by May 2017.1

De Nederlandsche Bank (DNB) (**):
Additional guidance on the Loss Absorbing Capacity of Deferred Taxes in Solvency II
Publication Date: February 3rd 2017

Regulation Type: Guidance

Category: Prudential
De Nederlandsche Bank (DNB) has issued a fact sheet which provides additional guidance on the elements it considers when assessing the adjustment for the loss-absorbing capacity of deferred taxes (LAC DT) in the context of Solvency II.2

Central Bank of Ireland (CBI) (**):
Letter to Board on key life assumptions
Publication Date: February 7th 2017

Regulation Type: Report

Category: Prudential
The CBI sent a letter to the Boards (of companies) setting out its expectations on the role of the Board in its oversight of assumptions, following the CBI review of key Life Insurance pricing and reserving assumptions that was published in June 2016. The CBI found that the Boards are, in general, not fulfilling their role in terms of oversight and governance of the assumptions further to the responsibility they bear in a Solvency II environment.3

Lloyd’s Market Association (LMA) (*):
ORSA Reports’ Guidance
Publication Date: February 2nd 2017

Regulation Type: Report

Category: Prudential
The paper produced by the Chief Risk Officers’ (“CRO”) Committee of the Llyod’s Market Association (“LMA”) seeks to suggest a way forward that will keep the “O” in ORSA – where CROs can draft ORSA reports that best engage their Boards, yet satisfy the regulator with the information it seeks.4

Insurance Europe (IE) (**):
Evaluation of first year of Solvency II
Publication Date: February 1st 2017
Regulation Type: News

Category: Prudential
Insurance Europe has issued a statement looking back on the first year of the Solvency II Directive. The statement emphasizes that while the directive was successfully implemented, certain aspects of its design increase the possibility of negatively affecting consumers, long-term investment more generally and the wider economy.5

European Insurance and Occupational Pensions Authority (EIOPA) (***):
Consultation Paper on the Proposal for Guidelines under the Insurance Distribution Directive (IDD) on Complex Insurance Based Investment Products
Publication Date: February 2nd 2017

Regulation Type: Consultation

Category: Compliance
The EIOPA has published a consultation paper concerning the proposal for Guidelines on insurance-based investment products that specifically incorporate a structure which makes it difficult for the customer to understand the risks involved. The agency will accept comments if they are received by April 28, 2017.6

European Banking Authority (EBA); European Securities and Markets Authority (ESMA); European Insurance and Occupational Pensions Authority (EIOPA) (***):

Joint Committee Consultation on PRIIPs with environmental or social objectives
Publication Date: February 10th 2017
Regulation Type: Consultation

Category: Compliance
The European Supervisory Authorities (EBA, EIOPA and ESMA) have published for comment a joint consultation paper on the procedures used to establish whether a Packaged Retail and Insurance-based Investment Product (PRIIP) targets specific environmental or social objectives. Comments to be submitted by March 23, 2017.7

European Insurance and Occupational Pensions Authority (EIOPA) (*):
Draft Implementing Technical Standards on the Insurance Product Information Document of the Insurance Distribution Directive
Publication Date: February 7th 2017
Regulation Type: Response To Consultation

Category: Compliance
The EIOPA has published a draft implementing technical standards on the Insurance Product Information Document (IPID) and has included a high-level assessment of possible impacts. In developing this submission, EIOPA has also built upon the responses received from the public consultation on the costs and benefits of its proposals.8

European Insurance and Occupational Pensions Authority (EIOPA) (***):
EIOPA’s Technical Advice on Possible Delegated Acts Concerning the Insurance Distribution Directive (IDD)
Publication Date: February 1st 2017
Regulation Type: Response To Consultation

Category: Compliance
The EIOPA has submitted Technical Advice in accordance with the European Commission’s request, concerning the Insurance Distribution Directive (IDD), and has included a high-level assessment of possible impacts. The Agency will monitor the issues raised in this technical advice and assess, on the basis of sound evidence following the implementation of the IDD in February 2018, the need for issuing further guidance.9

European Commission (EC) (*):

EU equivalence decisions in financial services policy: An assessment – Commission staff working document
Publication Date: February 27th 2017
Regulation Type: Report
Category: Compliance
Overview of equivalence between European Union current legal framework and international counterparts.10

European Insurance and Occupational Pensions Authority (EIOPA) (**):
KeyNote Address Gabriel Bernardino Chairman EIOPA – Making A Difference for European Consumers
Publication Date: February 16th 2017
Regulation Type: Speeches

Category: Compliance
Gabriel Bernardino, EIOPA Chairman, has delivered a speech on making a difference for European Consumers.11

Prudential Regulation Authority (PRA) (**):
Prudential Regulation Committee replaces PRA Board on 1 March 2017
Publication Date: February 28th 2017
Regulation Type: Report

Category: Others
The PRA has announced that effective March 1, 2017, the PRA Board will be replaced by the Prudential Regulation Committee (PRC). The membership of the PRC is detailed in this press release.12

Insurance Europe (IE) (***):
Supporting innovation in insurance in a digital age
Publication Date: February 6th 2017
Regulation Type: News

Category: Others
Insurance Europe has published an insightful briefing which discusses the need to support innovation in fintech and insurtech while maintaining consumer protection when using services offered through new technologies.13

Insurance Europe (IE) (***):
Concerns raised over European Parliament robotics report
Publication Date: February 16th 2017
Regulation Type: News

Category: Others
Nicolas Jeanmart, Personal Insurance Head, General Insurance and Macroeconomics at Insurance Europe has expressed concerns over the approval of the European Parliament’s legal affairs committee report on civil law rules on robotics.14

European Commission (EC) (**):
Keynote speech at the FinTech & Digital Innovation Conference 1st Annual Conference
Publication Date: February 28th 2017
Regulation Type: Speeches

Category: Others
Vice President of the European Commission Valdis Dombrovskis delivered a Keynote speech at the FinTech & Digital Innovation Conference, focusing on technologies like machine learning, distributive ledger technology or cloud computing.15

New York State Department of Financial Services (NYSDFS) (**):
CyberSecurity Requirements for Financial Services Companies
Publication Date: February 16th 2017
Regulation Type: Regulation

Category: Others
New York State Department of Financial Services (NYSDFS) finalizes cybersecurity regulation. It takes effect March 1, 2017 and requires financial services institutions (including insurers) to establish and maintain a cybersecurity program designed to protect their information systems and related stored private data.16

Monetary Authority of Singapore (MAS) (**):
Opening Address at the 17th Asia CEO Insurance Summit on 21 February 2017
Publication Date: February 21st 2017
Regulation Type: Speeches

Category: Others
Monetary Authority of Singapore (MAS) Director and Department Head (Insurance), Lee Keng Yi, gave the opening address at the 17th Asia CEO Insurance Summit. In her speech, Lee Keng Yi spoke on the steps taken by MAS to support innovation.17

Visit www.accenture.com/RegulatoryCompliance for latest insights on regulatory remediation and compliance transformation.

References:

  1. “Effect of board redeliberations on the 2013 Exposure Draft Insurance Contracts,” IASB Staff Paper, International Financial Reporting Standards, February 22, 2017. Access at: Effect of board redeliberations on the 2013 Exposure Draft Insurance Contracts

  2. “Additional guidance on the Loss Absorbing Capacity of Deferred Taxes,” De Nederlandsche Bank, February 3, 2017. Access at: Additional guidance on the Loss Absorbing Capacity of Deferred Taxes in Solvency II

  3. Letter on Board Oversight of Key Assumptions, Central Bank of Ireland, February 7, 2017. Access at: Letter to Board on key life assumptions
  1. “Keeping the “O” in ORSA, How Own Risk & Solvency Assessment (“ORSA”) reports can best be used to promote a risk and capital culture,” Lloyd’s Market Association (LMA), February 2, 2017. Access at: ORSA Reports’ Guidance

  2. “Solvency II one year on: successfully implemented, but excessive conservativeness risks harming consumers, long-term investment and economy,” Insurance Europe, February 1, 2017. Access at: Evaluation of first year of Solvency II

  3. “Consultation Paper on the proposal for Guidelines under the Insurance Distribution Directive on insurance-based investment products that incorporate a structure which makes it difficult for the customer to understand the risks involved,” European Insurance and Occupational Pensions Authority, February 2, 2017. Access at: Consultation Paper on the Proposal for Guidelines under the Insurance Distribution Directive (IDD) on Complex Insurance Based Investment Products

  4. “PRIIPS with environmental or social objectives,” European Banking Authority; European Securities and Markets Authority; European Insurance and Occupational Pensions Authority, February 10, 2017. Access at: Joint Committee Consultation on PRIIPs with environmental or social objectives

  5. “Draft Implementing Technical Standards concerning a standardised presentation format for the Insurance Product Information Document of the Insurance Distribution Directive,” European Insurance and Occupational Pensions Authority, February 7, 2017. Access at: Draft Implementing Technical Standards on the Insurance Product Information Document of the Insurance Distribution Directive
  1. “Final Report on Consultation Paper no. 16/006 on Technical Advice on possible delegated acts concerning the Insurance Distribution Directive,” European Insurance and Occupational Pensions Authority, February 1, 2017. Access at: EIOPA’s Technical Advice on Possible Delegated Acts Concerning the Insurance Distribution Directive (IDD)

  2. “EU equivalence decisions in financial services policy: an assessment,” European Commission, February 27, 2017. Access at: EU equivalence decisions in financial services policy: An assessment – Commission staff working document

  3. “Making a Difference for European Consumers,” Speech by Gabriel Bernardino, Chairman of the European Insurance and Occupational Pensions Authority,” European Insurance and Occupational Pensions Authority, February 16, 2017. Access at: KeyNote Address Gabriel Bernardino Chairman EIOPA – Making A Difference for European Consumers

  4. The Prudential Regulation Committee,” Prudential Regulation Authority, February 28, 2017. Access at: Prudential Regulation Committee replaces PRA Board on 1 March 2017

  5. Supporting innovation in insurance in a digital age,” Insurance Europe, February 6, 2017. Access at: Supporting innovation in insurance in a digital age

  6. Concerns raised over European Parliament robotics report,” Insurance Europe, February 16, 2017. Access at: Concerns raised over European Parliament robotics report

  7. “Vice President keynote speech at the FinTech & Digital Innovation Conference,” Speech by Valdis Dombrovskis, Vice President of the European Commission, European Commission, February 28, 2017. Access at: Keynote speech at the FinTech & Digital Innovation Conference 1st Annual Conference

  8. Cybersecurity Requirements for Financial Services Companies,” New York State Department of Financial Services, February 16, 2017. Access at: CyberSecurity Requiremens for Financial Services Companies

  9. “Opening Address by Ms Lee Keng Yi, Director and Department Head (Insurance Department), Monetary Authority of Singapore, at the 17th Asia CEO Insurance Summit on 21 February 2017,” Monetary Authority of Singapore, February 21, 2017. Access at: Opening Address at the 17th Asia CEO Insurance Summit on 21 February 2017

 

About the Insurance Monthly Regulatory Tracker

The “Insurance Regulatory Insights” newsletter is the monthly initiative aimed at updating the Finance and Risk community with the most recent regulatory changes impacting insurance firms. We update our comprehensive regulatory database every month by tracking more than 40 regulatory and industry bodies covering North America, Europe and Asia Pacific. Every month, we will highlight approximately 10 regulations shortlisted on the basis of geography of coverage and anticipated business impacts. Our summaries highlight the Regulation Type and business processes affected by the regulatory reforms. This newsletter is planned to supplement the existing newsletter “Regulatory Insights” which provides a deeper analysis of business implications and Accenture’s point of view on a single or much smaller set of regulatory changes.

Disclaimer

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