Insurance UK

Gov't Growth Priority Forces FCA To Reassess Consumer Risk

Moves by the U.K. government to force the financial watchdog to back economic growth with more relaxed regulatory controls could expose consumers to harm, leaving regulators with no clear idea of what risk levels would be politically tolerable.

The Biggest Developments In Insurance In 2024

The financial watchdog has come under pressure this year from the Labour government to tackle the cost of insurance, which has soared because of rising claims caused by the ongoing repercussions from Brexit and the war in Ukraine.

FCA's 2024 Consumer Focus Still Has Firms Guessing

The Financial Conduct Authority shifted further toward results-based financial regulation in 2024 by requiring regulated companies to comply better with its Consumer Duty, forcing managers to make individual interpretations of the regime's often ambiguous requirements where more specific rules are missing.

Snap July 4 Election Leaves Pension Reform In Disarray

The government's decision to call a snap general election for July 4 has left the U.K.'s pension sector in limbo, experts say, with uncertainty over whether the next administration will continue with an ambitious reform program.

March 31, 2025
Cocktail Bar Chain Settles £4M COVID Loss Insurance Claim

The operator of the Dirty Martini cocktail bar chain has settled its £4 million ($5.2 million) claim against a Maltese insurer for losses it claimed to have suffered during the COVID-19 pandemic.
March 31, 2025
'Still Early Days': A Litigation Funder Stays Optimistic

As part of a series of interviews with lawyers, class representatives and litigation-funders to mark the 10-year anniversary of the collective proceedings order regime, Law360 spoke to Neil Purslow of Therium Capital Management about the future of litigation funding for CPOs in the wake of the Supreme Court's PACCAR ruling.
March 31, 2025
Trade Body Seeks Consumer Duty Slack For Wholesale Banks

A financial services trade body on Monday is pressuring regulators to exempt wholesale banks servicing primarily corporate clients from the Consumer Duty regime to give companies easier access to capital.
March 31, 2025
Lloyds Bank Covers £5.1B Pension Liabilities With Rothesay

The trustee of two Lloyds Banking Group pension schemes said Monday it has penned two insurance policies totaling £5.1 billion ($6.6 billion) with Rothesay Life PLC to cover the cost of unexpected increases in the life expectancy of their members.
March 31, 2025
Myanmar Earthquake Exposes Insurance Protection Gap

The scale of the economic losses from the Myanmar and Thailand earthquake is likely to expose widespread underinsurance in the region, a broker has warned.
March 31, 2025
Claims Groups Slam Gov't Report On Personal Injury Reform

The government's plan to reduce premiums for motorists through its controversial reforms to claims for "whiplash" injuries three years ago have failed, consumer advocates said, after an official report found prices had fallen by less than promised.
March 31, 2025
BoE Proposes Raising Deposit Protection Scheme Limit

The regulatory arm of the Bank of England set out proposals on Monday to raise the deposit protection limit of the Financial Services Compensation Scheme from £85,000 ($110,000) to £110,000, warning banks that they should prepare now.
March 28, 2025
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen sparkling winemaker Nyetimber hit a rival distillery with an intellectual property claim, Newcastle United's former owner Mike Ashley target the club's ex-vice president for damages tied to a fraudulent investment, and a real estate agency file a legal claim against law firm Winston & Strawn LLP. Here, Law360 looks at these and other new claims in the U.K.
March 28, 2025
UK Pensions Watchdog Pledges To Cut Red Tape

The U.K.'s retirement savings watchdog on Friday committed to cutting the "burden" of unnecessary and outdated financial regulations that could be hampering pension savers' interests.
March 28, 2025
Gov't May Face £70M In Claims From Fire Insurance Scheme

The government could face up to £70 million ($90.7 million) in insurance claims under a temporary fire safety professional indemnity scheme it introduced three years ago, a top official said.
March 28, 2025
Pension Partners Guides £2M Benefits Deal For Housing Co.

A U.K. housing scheme operator's pension plan has agreed to a £2 million ($2.6 million) full scheme buy-in with financial services group Just, securing the benefits of 15 retirees and eight deferred members, consultant K3 said Friday.
March 28, 2025
FCA Tests 'Targeted Support' Model With 12 Finance Firms

The Financial Conduct Authority said Friday it has given 12 companies until April to give targeted support to consumers, an experiment ahead of a new regulatory model that will fill the gap between general guidance and advice for pensions and investments.
March 27, 2025
Huawei Defeats Widow's Delayed Claim Over Unpaid OT

A former Huawei employee's widow can't pursue the company for allegedly discriminating against her husband because she waited too long to launch her case, an employment tribunal has ruled.
March 27, 2025
6 Insurers Penned £5B-Plus In Pension Deals In 'Record' 2024

Six insurers wrote over £5 billion ($6.5 billion) each in pension deals for the first time in 2024, Lane Clark & Peacock LLP said Thursday, highlighting a risk transfer market "firing on all cylinders" with new entrants increasing competition.
March 27, 2025
EU Insurer Watchdog Urges Full Buffer Requirement In Crypto

The European Union's insurance watchdog on Thursday advised the EU's main executive body to impose on insurers a 100% capital buffer requirement for all crypto-asset investments.
March 27, 2025
InvestAcc Group To Buy AJ Bell Pension Unit For £25M

Investment platform company AJ Bell said Thursday it will sell its pensions administration arm to InvestAcc Group Ltd. for £25 million ($32.5 million), amid a business restructure.
March 27, 2025
UK Aims To Boost Competitiveness With Derivative Rule Cuts

Britain's two largest finance watchdogs Thursday proposed extending exemptions to margin requirements to cover unfavorable price movements for traders of some derivatives contracts, looking to keep the U.K. globally competitive.
March 27, 2025
Gov't Urged To Review State Pension Ahead Of Tax 'Cliff Edge'

The U.K. government must reform the state pension or face a "bizarre tax cliff edge" where benefits exceed personal allowance thresholds, experts warned.
March 27, 2025
Pension Watchdog Vows To Improve Internal Pay Gaps

White, heterosexual men continue to earn more money on average than their colleagues at The Pensions Regulator, data published by the retirement watchdog shows.
March 26, 2025
Claims Firm Beats Whistleblower's Fraud Case

A claims manager didn't blow the whistle on forged signatures at an insurance claims handler because he had waited until his resignation day to alert senior management, an employment tribunal has ruled.
March 26, 2025
UK Accounting Firms Warned On Capital Restructuring

The Financial Reporting Council has instructed audit firms that are considering a capital restructuring to engage with the watchdog "at an early stage" and with "full candor."
March 26, 2025
Insurers Could Pick Up Bill For Replacing Dangerous Cladding

Britain's professional indemnity insurance market could be forced to pick up a significant portion of the £22.4 billion ($29 billion) bill for replacing flammable cladding from buildings, an underwriter warned.
March 26, 2025
Gov't Expands UK Fraud Strategy With Focus on Scammers

Fraud Minister David Hanson announced at a summit on Wednesday that work has started on an expanded fraud strategy, with a focus on combating scams enabled by artificial intelligence, according to the Home Office.
March 26, 2025
FCA Presses London Insurers Into Misconduct Training

The scandal-hit London insurance market has drawn up a training program for staff after pressure from the Financial Conduct Authority, a group of trade bodies said.
March 26, 2025
UK Insurer Beam Buys Commercial Lines Broker KDH

Beam Insurance Solutions has acquired commercial lines broker KDH, as The Broker Investment Group-backed company strengthens its presence in the U.K.'s Midlands and targets hitting £22 million ($28 million) in gross written premiums by the end of 2025.

Editor's Picks

Top Court Ruling In 'Whiplash' Test Case Could Hit Premiums

Personal injury claimants could get higher payouts from their motor insurance as a result of a test case ruling at Britain's highest court on Tuesday, although analysts warn that insurers could respond with higher premiums to cover the cost of bigger claims.
FCA Begins Crackdown On Poor-Value Insurance Products

The move by the Financial Conduct Authority to restrict sales of guaranteed asset protection insurance is a sign of a faster approach to market intervention, and could lead the regulator to scrutinize other underperforming products, consultants say.
Post-Election UK Pension Changes Could Be In The Fine Print

Regulatory lawyers are not expecting radical overhaul in pension policies if the government changes after this year's general election. But lawyers say that signals in the opposition Labour Party's policy language could hint at possible shifts in investment priorities for retirement savings.

Expert Analysis

What Latest FCA Portfolio Letter Means For Payments Firms

Charlotte Hill at Charles Russell discusses the Financial Conduct Authority’s recent portfolio letter to CEOs of payments firms, outlining the regulator’s expectations, and the steps that these companies may now need to take to ensure compliance and operational effectiveness.
What's Next After FCA Drops Troubled 'Name And Shame' Plan

A closer look at the Financial Conduct Authority's recent decision to toss its widely unpopular proposal changing the test for announcing enforcement investigations may reveal how we got here, why the regulator changed course, and where it’s headed next, say lawyers at Hogan Lovells.
New UK Order Offers Welcome Clarity To Crypto Staking Rules

The recently effective Financial Services and Markets Act 2000 Amendment Order clarifies that arrangements for qualifying crypto-asset staking do not amount to a collective investment scheme, and by addressing an issue that curtailed staking activities in the U.K., facilitates the use of that practice, says Andrew Henderson at Goodwin.
How EU's Anticoercion Tool May Counter New US Tariffs

The never-before-used anticoercion instrument could allow the European Union to respond to the imposition of U.S. tariffs, potentially effective March 12, and gives EU companies a voice in the process as it provides for consultation with economic operators at different steps throughout the procedure, say lawyers at Crowell & Moring.
What To Know About Compliance As EU AI Act Takes Effect

Raj Shah at Mishcon de Reya explains how recently effective provisions of the European Union Artificial Intelligence Act, which concern prohibited AI practices and AI literacy, will affect both providers and users of AI systems, and suggests steps that companies can take now to plug any compliance gaps.
Rethinking 'No Comment' For Clients Facing Public Crises

“No comment” is no longer a cost-free or even a viable public communications strategy for companies in crisis, and counsel must tailor their guidance based on a variety of competing factors to help clients emerge successfully, says Robert Bowers at Moore & Van Allen.
Market Infrastructure Regs Aim To Reinvigorate EU Trading

The recently amended European Market Infrastructure Regulation, imposing a requirement on certain financial and nonfinancial institutions to maintain an active EU counterparty account, hopes to incentivize the central clearing of trades, although there are concerns that higher compliance costs will lead to a decrease in competitiveness, say lawyers at McDermott.
Important Changes To Note In Accountant Ethics Code Update

The Institute of Chartered Accountants of England and Wales' forthcoming code of ethics will bring a number of significant updates to raise standards within the profession, but also risks of professional indemnity claims that could lead to challenges for firms, say lawyers at RPC.
What 2025 Holds For UK, EU Restructuring And Insolvency

European Union and U.K. restructuring developments in 2024, with a new era of director accountability, the use of cramdown tools and the emergence of aggressive liability management exercises, mean greater consideration of creditors' interests and earlier engagement in restructuring discussions can be expected this year, says Inga West at Ashurst.
How GCs Can Protect Cos. From Geopolitical Headwinds

Geopolitical uncertainty is perceived by corporate leaders as the biggest short-term threat to global business, but many of the potential crises are navigable if general counsel focus on what is being said about a company and what the company is doing, says Juliet Young at Schillings.
Navigating PRA's Data Request For Crypto-Asset Exposure

The Prudential Regulation Authority’s recent data request for details on financial institutions' crypto-asset exposures should be used as an opportunity for firms to update their compliance procedures, and consider the future use of crypto-assets and related services, says James Wickes at RPC.
Key Points From FCA Financial Crime Guide Updates

The Financial Conduct Authority’s recent updates to its financial crime guide reflect the regulator’s learnings on sanctions following Russia's invasion of Ukraine, highlighting and clarifying consumer duty, anti-money laundering and other compliance expectations, say lawyers at Womble Bond.
Why Nonfinancial Misconduct Should Be On Firms' Radar

Following a recent Financial Conduct Authority survey showing an increase in nonfinancial misconduct, the regulator has made clear that it expects firms to have systems in place to identify and mitigate risks, says Charlotte Pope-Williams at 3 Hare Court.
Insider Info Compliance Highlights From New FCA Guidance

The Financial Conduct Authority's recent guidance to companies on identifying inside information clarifies the regulator's expectation of case-by-case assessment, helpfully highlighting that abuse of U.K.-regulated markets can arise earlier than some might think, say lawyers at Sullivan & Cromwell.
Interpreting Newly Released Consumer Fraud Complaints Data

The Financial Ombudsman Service’s latest complaint data focuses on scams and customer service, and demonstrates that as fraud is becoming rapidly more complex, financial regulators need to acknowledge that technology is here to stay and work together with firms to protect consumers, say lawyers at RPC.