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Insurance Insights

Insurance Insights

Insurance Insights

Evolve your digital tech stack to stay ahead

A sustainable, nimble and connected digital infrastructure is critical for insurers today as it provides the basis to meet evolving customer needs, capitalize on emerging insurtech opportunities for growth, and preserve M&A deal value for investors and stakeholders.

However, many insurance companies are faced with legacy platforms that are siloed across lines of businesses and bound by inflexible integrations. Nonetheless, there are 5 ways for insurers to evolve their tech stack and keep pace with current innovations, such as leveraging API, establishing a satellite model for innovation, and more.

Hear from global insurance professionals

Register for our webcast and hear from a panel of insurance professionals from KPMG, insurtechs and The Digital Insurer (TDI) as they discuss latest developments and trends in technology infrastructure for global insurers.

Date: Wednesday 29 August 2018
Time: 9:00am (UK) / 4:00pm (HK)


  • Jacob Abboud, Chief Information Officer, Allianz
  • Tomasz Kurczyk, Digital Transformation Director, AXA Singapore
  • Young Yang, Director of International Markets, Zhong An Tech
  • Will Pritchett, Partner, Global Insurtech Leader, KPMG in the UK
  • Yoshi Makita, Director, Technology Strategy & Performance, Insurtech Leader, KPMG Australia
  • Les Wong, Head of Europe, The Digital Insurer

Central Bank of Ireland update

Statement on ESAs Brexit Opinions

On 31 July the CBI issued a Statement in which it welcomes the publication by the European Supervisory Authorities (ESAs) of Opinions on the impact of Brexit. The CBI made specific reference to EIOPA’s ‘Opinion on the obligations of insurance undertakings and insurance intermediaries to inform customers about the impact of the withdrawal of the UK from the EU’ and reiterated that insurance undertakings must take appropriate contingency measures to ensure the continuity of services for cross-border insurance contracts.

The CBI Statement is available here. EIOPA’s Opinion of 28 June 2018 is available here (PDF, 305KB).

Behaviour and Culture of the Irish Retail Banks

In July, the CBI published the ‘Behaviour and Culture of the Irish Retail Banks’ report which was requested by the Minister for Finance, Paschal Donohoe TD. In the report, the CBI recommends that powers under legislation are given to it to introduce a new enhanced Individual Accountability Framework, applying not only to banks but also to other regulated financial services providers (including insurance undertakings); the Framework would go significantly beyond the current Fitness and Probity (F&P) requirements and would include an enhanced F&P Regime, Conduct Standards and a Senior Executive Accountability Regime. The report can be viewed here (PDF, 752KB).


EIOPA update

Understanding Cyber Insurance

On 2 August EIOPA published a report “Understanding Cyber Insurance - A Structured Dialogue with Insurance Companies (PDF, 906KB)". The report sets out EIOPA’s observations following a survey on cyber insurance underwriting issued to 13 European insurers and reinsurers. EIOPA found that the cyber insurance industry expects a gradual increase in demand for cyber insurance, mainly driven by new regulations, increased awareness of risks and by a higher frequency of cyber events.

Resolution Funding and National Insurance Guarantee Schemes

On 30 July EIOPA published a Discussion Paper on resolution funding and national insurance guarantee schemes as a follow-up to the EIOPA Opinion on the harmonisation of recovery and resolution frameworks for (re)insurers across the Member States, published in 2017. EIOPA is seeking comments on its proposal to establish a European network of national insurance guarantee schemes (minimum harmonisation). The discussion paper is open for comments until 26 October 2018 and can be viewed here.

Guidance on KIDs for PRIIPs

On 20 July the European Supervisory Authorities (ESAs) published additional guidance on the Key Information Document (KID) requirements for Packaged Retail and Insurance-based Investment Products (PRIIPs); in particular, the ESAs published:

  • Additional Q&As
  • Updates to the Flow diagrams for the risk and reward calculations (New calculation example for Category 3 PRIIPs stress performance scenario)

The additional guidance documents can be found here.

The ESAs have also written to the European Commission (PDF, 598KB) regarding the application of the scope of the PRIIPs Regulation. In the letter, the ESAs call upon the EU Commission as a matter of urgency to provide detailed public guidance on which types of products, and in particular bonds, fall within the scope of the Regulation, this is to enable market participants to make an informed decision as to whether or not there is a need to draw up a PRIIPs KID.

Thematic review on consumer protection issues in travel insurance and on the use of Big Data

EIOPA launched in July a thematic review of consumer protection issues relating to travel insurance. EIOPA’s objective is to assess potential sources of consumer detriment arising from travel insurance product design and product distribution within the European Union. In particular, EIOPA will consider the impact of emerging distribution and business models on consumers and, more broadly, on the insurance industry. The questionnaire circulated by the National Competent Authorities (NCAs) to a representative sample of insurance undertakings can be viewed here (PDF, 263KB). 

EIOPA also launched a thematic review on the use of Big Data. The purpose of this thematic review is to gather evidence on the use of Big Data by insurance undertakings and insurance intermediaries in pricing and underwriting, product development, claims management, sales and marketing. The review focuses solely on the motor and health insurance markets. The surveys that EIOPA circulated to NCAs, consumer associations and a representative sample of insurance undertakings, can be viewed here (06.07.2018).

Report on Failures and Near Misses

On 17 July EIOPA published a report: ‘Failures and near misses in insurance: Overview of the causes and early identification (PDF, 2.5MB)’. The report is based on EIOPA’s own database of failures and near misses; the database covers the period from 1999 to 2016 and consists of data relating to 180 distressed insurance and reinsurance undertakings in 31 European countries. The report is available here.

Q&A on the Insurance Distribution Directive

EIOPA published in July the first set of questions and answers on the Insurance Distribution Directive (IDD) and its implementing regulations. EIOPA will continue to address stakeholders’ questions on IDD via the online Q&A tool and to publish its answers. Q&As on the Product Oversight and Governance Regulation and on the Insurance-based Investment Product Regulation can be found here.

Amendments to the Solvency II Reporting Implementing Regulations

On 13 July EIOPA submitted to the European Commission draft implementing regulations amending the regulations setting out the quantitative reporting templates that must be submitted to supervisory authorities and those that must be included in the Solvency and Financial Condition Report. The objective of the amendments is to correct errors and inconsistencies in a number of templates and instructions to those templates, and also to enable insurers to disclose information relating to investments in infrastructure corporates. The templates affected include two variation templates, the SCR Market Risk template, one reinsurance template and the risk concentration template. The Draft amendments can be found here (16.07.2018).

UK Update

Strengthening individual accountability in insurance: Extension of the Senior Managers and Certification Regime to insurers

This month the PRA has released:

The PRA also clarified that the certification regime will now include only members of the governing body in respect of small Non-Directive Firms (NDFs) rather than including all members of the governing body and all employees who report directly to the governing body. The PRA has also updated SS 35/15 to clarify what it considers to be a 'significant' change to a 'statement of responsibility' (SoR) which would trigger submission of the revised SoR to the PRA.

CP18/18 Strengthening accountability: implementing the extension of the SM&CR to insurers

This consultation paper (PDF, 1MB) includes proposals for technical changes to the rules in the PRA Rulebook for the implementation of the SM&CR relating to:

  • an 'overlap' rule for individuals with 'FCA responsibilities'
  • cross-references to the FCA's Handbook
  • transitional arrangements for widening the scope of the application of regulatory reference requirements
  • Other minor consequential amendments.

This consultation closes on 1 October 2018 while the extended SM&CR for insurers is expected to come into effect from 10 December 2018.

Insurance Operational Efficiency Survey

In order to understand where on the transformational journey Insurance companies currently are and where they are heading in the next 12 to 24 months, KPMG International and ACORD, a non-profit standards development organization, are launching a short survey on operational efficiencies.

Due to relatively low growth and the continued commoditization of insurance products and services, insurance companies are already under pressure to significantly reduce operating costs in order to compete. This requires a value framework: assessing truly value-added capabilities versus commodities. This will be achieved through a number of initiatives and transformations including: distribution, legacy systems, intelligent automation, alternative sourcing and process redesign, just to name a few.

The survey takes approximately 30 minutes to complete. All responses are strictly confidential and anonymous, and will only be reported in aggregate.

From the survey results we will be creating a briefing paper that presents industry-wide results with practical insights on the fundamental capabilities essential for insurance companies to become an agile and transformed organization. As a token of our appreciation, a copy of the final report will be shared with you.

The survey is accessible by this link.