Consultation on Changes to the Domestic Actuarial Regime and Related Governance Requirements under Solvency II
The Central Bank of Ireland (“CBI”) published CP122 in June 2018. The CBI is proposing further changes to its Domestic Actuarial Regime; in particular, it is proposing to amend the format of the Actuarial Opinion on the Technical Provisions (“AOTP”) and to introduce new governance requirements applicable to With-Profits funds. CP122 can be viewed here (PDF, 333KB).
ESA Joint Committee Report on Automated Advice
On 5 September EIOPA published the findings from a survey done earlier in the year by the Joint Committee of the European Supervisory Authorities (“ESAs”) on the evolution of “automation in financial advice” in the securities, banking and insurance industries. In general, the ESAs found that the use of ‘automation in financial advice’ was growing, albeit slowly, though differences exist across the EU. The Report provides a high level summary of the new business models that have emerged in the area of automated advice (e.g. the use of ‘chatbots’); the barriers identified by industry to the development of automation in financial advice; and on the activities carried out by different EU financial supervisors on this area. The Report is available to download here.
Discussion Paper on Resolution Funding and National Insurance Guarantee Schemes
On 30 July 2018, EIOPA published a discussion paper in order to gather views from interested stakeholders on two areas: insurance resolution funding and insurance guarantee schemes. The paper also discusses the proposed changes to the Motor Insurance Directive. EIOPA seeks comments by 26 October 2018.
The Prudential Regulation Authority (PRA) updated its New firm authorisation webpage to bring together the guidance and roadmap from the pre-application phase to life after authorisation that a new applicant will have to go through in order to set up an authorised insurance undertaking (or branch) in the UK. The New Insurer Start-up Unit (NISU) is a joint initiative from the PRA and the Financial Conduct Authority (FCA) to recognise the fact that the PRA will only agree to authorise a firm if the FCA is also content for it to be authorised.
Register for our webcast and hear from a panel of insurance professionals from KPMG, insurtechs and The Digital Insurer (TDI) as they share views and current developments in insurance innovation.
Date: Thursday 27 September 2018
Time: 10:00am (ET) / 3:00pm (UK) / 10:00pm (HK)
Today’s insurers are facing a perfect storm of three converging factors: the struggle to achieve top-line revenue growth, changing customer needs and expectations, and encroaching technology giants and other new players taking market share from incumbents.
In light of these pressures, innovation is a business imperative. Insurers must rethink their business models, operating models and customer engagement methods in order to maintain and gain market relevance—and, for many, this process is already well underway. Yet while there has long been focus on organic innovation, many insurers are now recognising that InsurTech partnerships, mergers and acquisitions (M&A) and corporate venture capital (CVC) initiatives are critical to business transformation. Find out more about insurers and innovation.
With the current growth trajectory in the legacy market set to continue, we look at the demand-side and supply-side opportunities and what actions run-off acquirers need to do to take advantage of this. Find out more about Brexit and the legacy market.
A new report published by KPMG International, Aligning behind your customer agenda, highlights how the non-life personal lines insurance industry as a whole is lagging behind other industries significantly in applying and extracting the value from being a connected enterprise. What’s more, although non-life personal lines insurers placed a higher priority on creating an interconnected and aligned organization, more than three-quarters of respondents say such efforts haven’t generated the returns they need.
Our report provides some practical insights on the fundamental capabilities essential for non-life personal lines insurers to become a customer-centric, agile and digitally transformed connected enterprise.
The insurance market is changing and there are three reasons why we see this disruption taking place:
When applied to life and health insurance, we see seven connected forces significantly reshaping the market:
A series of videos that examine each disruptive force, considering the likely market impact and resulting opportunities it could create, will be available over the coming months. Find out more about disruption in life and health insurance.