Edition Highlights:

  • The International Association of Insurance Supervisors has published a report entitled “FinTech Developments in the Insurance Industry,” which highlights the potential impact of innovative financial technologies (“FinTech”) on insurance sector competitiveness.
  • The Financial Conduct Authority and the Information Commissioner’s Office held a joint forum on three areas: social media, obtaining consent and transparency of data, data protection.
  • The National Association of Insurance Commissioners announced that the creation of the Innovation and Technology (EX) Task Force to help insurance regulators stay informed on key developments.

Current coverage period: Through March 31, 2017

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

CURRENT REGULATIONS:

National Association of Insurance Commissioners (NAIC) (**):
NAIC Increases Spotlight on Innovation and Emerging Technologies
Publication Date: March 9th 2017

Regulation Type: Consultation

Category: Prudential

The NAIC announced the creation of the Innovation and Technology (EX) Task Force to help insurance regulators stay informed on key developments, including new products and services from start-up companies, as well as established insurance industry players.1

International Financial Reporting Standards (IFRS) (*):
Insurance Contracts: Project Overview
Publication Date: February 17th 2017

Regulation Type: Response to Consultation

Category: Accounting
The high-level (International Financial Reporting Standards) IFRS 17 project presentation focused on capturing the relevant and transparent accounting information. It also includes the comparison of reporting performance.2

International Association of Insurance Supervisors (IAIS) (*):
IAIS Launches Major Consultation Package
Publication Date: March 6th 2017

Regulation Type: News

Category: Compliance
The IAIS has announced the launch of a major consultation package which, among other things, covers proposed revisions to various IAIS Insurance Core Principles.3

European Securities and Markets Authority (ESMA) (**):
Response to ESAs joint discussion paper on use of big data by financial institutions
Publication Date: March 22nd 2017

Regulation Type: Response to Consultation

Category: Accounting
The agency has issued its response to the European Supervisory Authorities’ (ESAs) joint discussion paper on the use of big data by financial institutions. The agency expresses its agreement with the ESAs’ sentiment that new technologies employing big data analytics have the potential to provide the insurance industry with new ways of insuring risks and improving loss prevention advice.4

International Association of Insurance Supervisors (IAIS) (**):
Report on the FinTech developments in the insurance industry
Publication Date: March 14th 2017
Regulation Type: News

Category: Accounting
The IAIS has published a report entitled “FinTech Developments in the Insurance Industry,” which highlights the potential impact of innovative financial technologies (“FinTech”) on insurance sector competitiveness, consumer choice, interconnectedness, business model viability and regulatory oversight. The report also examines the challenges and opportunities insurance supervisors face in this rapidly changing insurance environment.5

Financial Conduct Authority (FCA) (**):
Insurance Distribution Directive Implementation “ Consultation Paper I
Publication Date: March 6th 2017

Regulation Type: Consultation

Category: Accounting
The FCA has issued a consultation paper on the implementation of the Insurance Distribution Directive (IDD), with which the UK is required to comply by February 23, 2018. This consultation paper addresses the application of the IDD, professional and organizational requirements, complaints handling and out-of-court redress, changes to conduct of business rules (for non-investment insurance contracts), and the regulatory regime for Ancillary Insurance Intermediaries. Comments should be submitted by June 5, 2017.6

European Commission (EC) (***):

Conference #FinTechEU : Is EU regulation fit for new financial technologies?
Publication Date: March 23rd 2017
Regulation Type: News

Category: Prudential
The European Commission organized a conference to feed into the debate on whether the European Union (EU) is ready for this digital transformation and identify which specific measures and overall approach would contribute to creating a vibrant EU technology-enabled finance sector.7

European Commission (EC) (**):
Public consultation on FinTech: a more competitive and innovative European financial sector
Publication Date: March 23rd 2017
Regulation Type: Consultation

Category: Prudential
This consultation seeks input from stakeholders to further develop the Commission’s policy approach to technological innovation in financial services.8

Prudential Regulation Authority (PRA) (**):
PRA issues items related to its approach to its insurance objective, including a speech by Sam Woods
Publication Date: March 20th 2017
Regulation Type: Speeches

Category: Prudential
The PRA has published a news release and the text of a speech by Sam Woods (Deputy Governor for Prudential Regulation and Chief Executive Officer of the Prudential Regulation Authority) concerning the PRA’s role in the supervision of insurance companies. The speech coincides with the publication of the report by the Bank’s Independent Evaluation Office (IEO) on the PRA’s approach to its objective of protecting policyholders and their response to this Report.9

European Commission (EC) (***):

Packaged Retail and Insurance-based Investment Products (PRIIPs) delegating regulation
Publication Date: March 8th 2017
Regulation Type: Guidance
Category: Prudential
The agency has published the final version of the Delegated Regulation supplementing the Regulation on key information documents for Packaged Retail and Insurance-Based Investment Products. The amendments to the Delegated Regulation relate to multi-option PRIIPs, performance scenarios, comprehension alert and presentation of administrative costs in relation to biometric components of insurance-based investment products.10

European Commission (EC) (*):
Consumer Financial Services Action Plan: Better Products, More Choice
Publication Date: March 23rd 2017
Regulation Type: Consultation

Category: Compliance
The EC has published an action plan titled “Consumer Financial Services Action Plan: Better Products, More Choice.” The action plan sets out further steps to what the EC describes as a genuine technology-enabled single market for retail financial services where consumers can get preferred deals while being well protected, and where, in the long run, the distinction between domestic and cross-border providers of financial services should no longer matter.11

Insurance Europe (IE) (*):
Response to EIOPA Discussion Paper on the review of specific items in the Solvency II Delegated Regulation
Publication Date: March 8th 2017
Regulation Type: Response to Consultation

Category: Compliance
Insurance Europe has issued its response to the European Insurance and Occupational Pensions Authority ‘s discussion paper on the review of specific items in the Solvency II Delegated Regulation. In its response, Insurance Europe says that it welcomes the review of Solvency II requirements, as it believes the process of implementing the directive has revealed unforeseen issues in a number of areas.12

European Insurance and Occupational Pensions Authority (EIOPA) (*):
Building a common supervisory culture
Publication Date: March 3th 2017
Regulation Type: Speeches

Category: Compliance
Gabriel Bernardino, Chairman of European Insurance and Occupational Pensions Authority has delivered a speech on Solvency II through the eyes of small and medium-sized insurers.13

Bank of England  (BoE) (**):
Bank of England FinTech Accelerator launches new community and latest proofs of concept
Publication Date: March 17th 2017
Regulation Type: Response to Consultation

Category: Others
The Bank of England Fintech Accelerator has launched a new community which brings together fintech-related organizations. The community has three aims: 1) share developments, trends and insights; 2) make sure the Bank is engaging with different fintech firms from across the sector; 3) Enable firms with an interest in fintech to network, supporting the development of the sector.14

Financial Conduct Authority (FCA) (***):
Summary of the Forum on the use of data in insurance by the FCA & the ICO
Publication Date: March 3rd 2017
Regulation Type: News

Category: Others
The FCA and the Information Commissioner’s Office (ICO) held a joint forum to further engage with the industry. This document provides an overview of the three areas that were discussed in the breakout sessions: social media, obtaining consent and transparency of data, data protection.15

Monetary Authority of Singapore (MAS) (*):
Financial Regulation – The Forward Agenda
Publication Date: March 20th 2017
Regulation Type: Speeches

Category: Others
Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), delivered the keynote address at the Australian Securities and Investments Commission (ASIC) Annual Forum 2017 on “Financial Regulation – The Forward Agenda.” He addressed the future of the regulatory agenda, focusing specifically on reforms made to date and evaluating their effectiveness and effects, going beyond rulemaking to foster a culture of trust and risk governance in financial institutions and markets.16

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

References:

1.  “NAIC Increases Spotlight on Innovation and Emerging Technologies,” National Association of Insurance Commissioners, March 9, 2017. Access at: NAIC Increases Spotlight on Innovation and Emerging Technologies

2.  “Insurance Contracts Project Overview,” International Financial Reporting Standards (IFRS), February 17, 2017. Access at: Insurance Contracts: Project Overview

3.  “IAIS Launches Major Consultation Package,” International Association of Insurance Supervisors, March 6, 2017. Access at: IAIS Launches Major Consultation Package

4.  “Joint Committee Discussion Paper on the Use of Big Data by Financial Institutions,” European Securities and Markets Authority, European Banking Authority, European Insurance and Occupational Pensions Authority, March 22, 2017. Access at: Response to ESAs joint discussion paper on use of big data by financial institutions

5.  “IAIS: FinTech Trends Prompt Assessment of Insurance Supervisory Practices and Skills,” International Association of Insurance Supervisors, March 14, 2017. Access at: Report on the FinTech developments in the insurance industry

6.  “CP17/7: Insurance Distribution Directive implementation – consultation paper I,” Financial Conduct Authority, March 6, 2017. Access at:Insurance Distribution Directive Implementation “ Consultation Paper I

7.  “Is EU regulation fit for new financial technologies?,” European Commission, March 23, 2017. Access at: Conference #FinTechEU: Is EU regulation fit for new financial technologies?

8.  “Public consultation on FinTech: a more competitive and innovative European financial sector,” European Commission, March 23, 2017. Access at: Public consultation on FinTech: a more competitive and innovative European financial sector

9.  “Insurance supervision at the PRA – speech by Sam Woods,” Prudential Regulation Authority, March 20, 2017. Access at: PRA issues items related to its approach to its insurance objective, including a speech by Sam Woods

10. “Commission Delegated Regulation (EU) of 8.3. 2017, supplementing Regulation (EU) No 1286/2014 of the European Parliament and of the Council on key information documents for packaged retail and insurance-based investment products (PRIIPs) by laying down regulatory technical standards with regard to the presentation, content, review and revision of key information documents and the conditions for fulfilling the requirement to provide such documents,” European Commission, March 8, 2017. Access at: Packaged Retail and Insurance-based Investment Products (PRIIPs) delegating regulation

11. “Consumer Financial Services Action Plan: Better products and more choice for European consumers,”European Commission, March 23, 2017. Access at: Consumer Financial Services Action Plan: Better Products, More Choice

12. “Response to EIOPA discussion paper on upcoming Solvency II review,” Insurance Europe, March 8, 2017. Access at: Response to EIOPA Discussion Paper on the review of specific items in the Solvency II Delegated Regulation

13. “Building a Common Supervisory Culture,” Keynote Speech, Gabriel Bernardino, European Insurance and Occupational Pensions Authority, March 3, 2017. Access at: Building a common supervisory culture

14. “Bank of England FinTech Accelerator launches new community and latest proofs of concept,” Bank of England, March 17, 2017. Access at: Bank of England FinTech Accelerator launches new community and latest proofs of concept

15. “Summary of the Forum on the use of data in retail general insurance Financial Conduct Authority (FCA)/ Information Commissioner’s Office (ICO) Monday 16 January 2017,” Financial Conduct Authority, Information Commissioner’s Office, March 3, 2017. Access at: Summary of the Forum on the use of data in insurance by the FCA & the ICO

16. “Financial Regulation – The Forward Agenda” – Keynote Address by Mr Ravi Menon, Managing Director, Monetary Authority of Singapore, at the Australian Securities and Investments Commission (ASIC) Annual Forum 2017 on 20 March 2017,” Monetary Authority of Singapore, March 20, 2017. Access at: Financial Regulation – The Forward Agenda

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

This blog is intended for general informational purposes only, does not take into account the reader’s specific circumstances, may not reflect the most current developments, and is not intended to provide advice on specific circumstances. Accenture disclaims, to the fullest extent permitted by applicable law, all liability for the accuracy and completeness of the information in this blog and for any acts or omissions made based on such information. Accenture does not provide legal, regulatory, audit or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professional.

About Accenture:

Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Its home page is www.accenture.com.

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