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Insurance Insights

Insurance Insights

Insurance Insights

Upcoming KPMG Sponsored Event: Making Data Analytics work for Insurance

InsurTech Ireland, in conjunction with KPMG, are hosting the first meet-up of 2019. The theme is "Making Data Analytics work for Insurance".  The speakers are:

  • Jean Rea, Director of Actuarial Services at KPMG Ireland, will discuss the importance of data driven decisions. She will give us an overview of the technology, skills and models available to embed data analytics within your organisation
  • Michael Crawford, Co-founder and CEO of Describe Data, will tell you how to go about setting up a data science function from scratch without wasting time or money
  • Padraic Sheerin, Co-founder and CEO of Squad, will share his real world experience of actually building the data science function and delivering projects at Prudential / Pramerica and at Allstate

The venue is Dogpatch Labs in CHQ, Dublin, starting promptly at 6:00pm on Tuesday 26th February. For registration please click here.

Recent Digital Insurer Webinar: InsurTech - 10 Trends for 2019

Through our partnership with The Digital Insurer, we organised a webinar with an experienced, global panel of insurance professionals to discuss the theme of “2019 Digital Insurance predictions”. Please click here for an opportunity to replay the webinar.

Mind the gap: interviews with C-level women executives in Finance

We are pleased to announce the launch of a new campaign called 'Mind the Gap'. It features a series of interviews between Laura Hay, KPMG’s Global Head of Insurance, and a number of C-level women executives in Global Financial Services. We discuss their career progression, failures and successes, in the hopes that others can gain valuable insight and inspiration from them.

Every week starting January 29th, a new blog article is being released that features Laura’s discussion with one of these inspiring women. During the week of March 8th, International Women’s Day, we will share a series of videos of Laura interviewing Michele Meyer-Shipp, KPMG in the US’ new Chief Diversity and Inclusion Officer.

Recent KPMG Podcast: The business of Brexit

The business of Brexit podcast from our KPMG UK colleagues (from week beginning 4th February) cuts through the political noise and focuses on the practical issues that companies may face in the run up to the UK’s departure and beyond.

Central Bank of Ireland Update

Amendments to the Domestic Actuarial Regime and Related Governance Requirements under Solvency II

The Central Bank of Ireland (“CBI”) on 29 January 2019 published the amended Domestic Actuarial Regime and Related Governance Requirements under Solvency II, introducing the following amendments to the Domestic Actuarial Regime:

i. Amendment 1 – Introduces new requirements for the governance of the With-Profits funds which includes production of publicly available With- Profits Operating Principles Document (“WPOP”), annual reporting to With-Profits members and reporting requirements for the Head of Actuarial Function (“HoAF”) in relation to the With-Profits funds.

ii. Amendment 2 – Introduces changes to the format of the Actuarial Opinion on Technical Provisions (“AOTP”) template to clarify the level of reliance the HoAF is placing on others, whether there are any key limitations in the calculation of the Technical Provisions and any recommendations for improvement.

CP-129 CBI issues Consultation Paper on a New Levy Calculation Methodology for Insurers 

The CBI has released a consultation paper on a new levy calculation methodology for insurers, the aim of which is to obtain stakeholders’ views on a proposed revised methodology for calculating the industry-funding levy for all insurance entities supervised by the CBI.

CBI publishes Regulatory Service Standards Performance Report

This document sets out the CBI’s performance against Service Standards in respect of: (a) authorisation of Financial Service Providers (FSPs) which include insurance and (re)insurance entities; (b) processing of Fitness and Probity Pre-Approval Controlled Function (“PCF”) Individual Questionnaire (“IQ”); and (c) contact management.

EIOPA update

EIOPA publishes findings of its peer review examining how national competent authorities ("NCAs") assess the probity of members of the board of directors and qualifying shareholders

The peer review conducted by EIOPA of the NCAs identified a number of findings, key areas of risks, best practices and various areas of recommendations in relation to probity assessment of board of directors and qualifying shareholders.

EIOPA seeks issues Call for Evidence for information on integration of sustainability risks in Solvency II

EIOPA issued a Call for Evidence to collect information from market participants to analyse how sustainability risks affect (re)insurers investments, with particular focus on climate change. Last year, on 28 August 2018, the European Commission issued a call to EIOPA for an Opinion on sustainability within Solvency II. The Call for Opinion followed a previous Call for Technical Advice to EIOPA and ESMA on potential amendments to delegated acts under Solvency II and the Insurance Distribution Directive with regard to the integration of sustainability risks and factors.

EIOPA publishes updated work programme for 2019, highlighting and specifying the activities and tasks of the Authority for the coming year, within the framework of a multiannual work programme 2019 – 2021

The work programme by EIOPA aims to focus on some of the key actions such as:

  • Driving forward conduct of business regulation and supervision - Developing and strengthening the regulatory framework for the protection of consumers;
  • Leading convergence towards high-quality prudential supervision throughout the EU - Enabling supervisory convergence with a sound, smart and robust regulatory framework which is responsive to market developments;
  • Strengthening the financial stability of the insurance and occupational pensions sectors - Identifying, assessing, monitoring and reporting risks to the financial stability of the European insurance and pensions sectors; and
  • Delivering the mandate effectively and efficiently - Ensuring a strong corporate culture, proper governance as well as skilled and committed staff.


Insurance Europe: Comments on the European Data Protection Board (EDPB) guidelines on the GDPR territorial scope

Insurance Europe has released a Position Paper on the draft guidelines on the territorial scope of the General Data Protection Regulation (“GDPR”). Insurance Europe believe that “in general, the guidelines serve their purpose to define the criteria for determining the application of the GDPR territorial scope”.

Insurance Europe issued Insight Briefing - Big data and its big benefits for consumers

Insurance Europe has published an insight briefing about how insurers’ use of big data can benefit consumers.

PRA related updates

The following updates, while UK specific, may be of interest to Irish based (re)insurers:

30 January 2019: Cyber underwriting risk

In light of the supervisory statement (SS4/17) published in July 2017, the PRA published a Dear CEO letter from Anna Sweeney (Director, Insurance Supervision) highlighting key themes from a survey conducted on cyber underwriting risk. The expectations set out in SS4/17 are on prudent management of cyber underwriting risk in three broad areas:

1.     actively managing non-affirmative cyber risk;

2.     setting clearly defined cyber strategies and risk appetites agreed by the board; and

3.     building and continuously developing insurers’ cyber expertise

The results suggest that the expectations set out in the SS4/17 are relevant and valid as firms have implemented some of the measures. However, non–affirmative cyber risk management, risk appetite and strategy require more work to ensure prudent management of the exposures. The key results are highlighted in the letter.

The firms recognise the need to develop cyber expertise due to the evolving nature of cyber risks. Firms are seeking input from the Chief Information Security Officer, other technology experts and external specialists and providing bespoke training programmes for board members and underwriters. Further actions from the PRA include continued interaction with firms and other regulators whilst also expecting insurers to set up a plan to manage non-affirmative cyber risks by H1 2019. In addition, meetings will be arranged by end of Q1 2019 with surveyed firms and coordination with Lloyds to agree on follow up action in relation to Lloyds managing agents. In H2 2019, the PRA intends to carry out deep dive reviews of firms including those not in initial sample to assess progress as set out in SS4/17.

Transition to IFRS 17