Insurance UK

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.

Plan To Recast £2.5T Pensions Sector Raises New Risks

The government unveiled a set of reforms Tuesday designed to tap the U.K.'s £2.5 trillion ($3.2 trillion) pension sector for investment in new technology startups — but experts say the shakeup could lead to an uncertain future for millions of workers saving for retirement.

February 10, 2025
Ombudsman To Charge Claims Firms For Dispute Referrals

The Financial Ombudsman Service has said that it will impose a charge on claims companies for referring disputes as it attempts to deal with a surging caseload.
February 10, 2025
Direct Line Directors Back £3.7B Aviva Acquisition Deal

The directors of Direct Line Insurance Group PLC said Monday that they unanimously recommend that shareholders back the £3.7 billion ($4.6 million) cash and stock takeover offer tabled by Aviva.
February 07, 2025
FCA Doubles Withdrawals, Changes To Misleading Ads In 2024

The Financial Conduct Authority said Friday its interventions led to authorized businesses withdrawing or amending 19,766 misleading advertisements in 2024 — up from 10,008 the previous year.
February 07, 2025
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen Investec Bank PLC sue two diamond tycoons, London florist Nikki Tibbles file a claim against an "imitator company," a direct descendant of the Cartier family launch a claim, and a Coronation Street actor hit footballer Joe Bunney with a defamation claim. Here, Law360 looks at these and other new claims in the U.K.
February 07, 2025
Blowback From Name And Shame Plan Hurts FCA Credibility

An embarrassing rebuke for the City watchdog's controversial proposal to "name and shame" companies under investigation for financial misconduct at an early stage has undermined its regulatory credibility as well as efforts to boost London's competitiveness as a financial center.
February 07, 2025
Goldman-Backed Clear Expands In Ireland With Broker Buy

Insurance broker Clear Group has said it has bought Phelan Caswell Insurances Ltd. to broaden its footprint in the Irish market — following a string of other purchases by the U.K. company.
February 07, 2025
EU Finance Watchdog Seeks Ways To Ease Reporting Burden

The European Securities and Markets Authority unveiled plans on Friday to streamline and reduce the reporting burden for the financial sector as it aims to cut down on costs and complexity.
February 07, 2025
Pension Plans Urged To Eye Bulk Annuity Sustainability

The U.K. retirement savings watchdog has told pension trustees to weigh sustainability guidelines when they enter into a bulk annuity deal.
February 07, 2025
Clifford Chance Helps L&G Sell US Insurance Biz For $2.3B

Legal & General said Friday that it will sell its U.S. protection insurance business to Meiji Yasuda, a Japanese insurer, for $2.3 billion in cash in a move to grow its pensions risk transfer business and allow it to reward shareholders.
February 06, 2025
Allianz UK Detects £157M 'Record' Level Of Fraud In 2024

Allianz UK on Thursday said it uncovered a total of £157.24 million ($195.94 million) worth of insurance fraud in 2024 — a 10% year-on-year increase in part driven by the rising cost of living increasing the number of consumers turning to scams.
February 06, 2025
Pension Funds Warned Of Impact Of Global Trade War

Pension providers should consider the potential impact on their funding levels of a global trade war in the coming months, a consultancy warned Thursday.
February 06, 2025
UK Car Insurers Named And Shamed For Claims Delays

Two out of five car insurance customers experience delays in getting paid by their insurers, a U.K. consumer group said Thursday, as it urged the Financial Conduct Authority to crack down on poor claims handling.
February 06, 2025
Global Commercial Insurance Rates Drop 2% In Late 2024

The average price of commercial insurance in global markets fell by 2% in the last three months of 2024, Marsh has said, marking the second consecutive quarterly decrease after seven years of rising rates.
February 06, 2025
Weil Guides BCI's £1B Offer For Luxembourg Investor

Canadian asset manager British Columbia Investment Management Corp. plans to take investor BBGI Global Infrastructure SA of Luxembourg private in a cash deal worth £1 billion ($1.24 billion), the companies said Thursday.
February 05, 2025
FCA Told To Shelve Controversial Investigation Plans

The Financial Conduct Authority should not go ahead with controversial plans to name firms under investigation at an earlier stage unless it can ensure the proposals sufficiently balance increased transparency and managing the potential risks to firms, a House of Lords committee said Thursday.
February 05, 2025
Ryanair Loses €1B TAP State Aid Challenge

Low-cost Irish airline Ryanair has lost yet another attempt to stop state aid from being delivered to its rivals in the airline industry after a European Union court on Wednesday batted away its challenge to a €1.2 billion ($1.249 billion) aid package for the parent company of TAP Air Portugal.
February 05, 2025
Insurers Say Stranded Jets Not Covered By War Risks Policies

War-risk insurers argued Wednesday that they should not have to cover losses of aircraft stranded in Russia after the invasion of Ukraine, arguing airlines retaining the aircraft were not covered by the leasing airlines' insurance policy.
February 05, 2025
Insurers Call For Tougher Line On Cladding After Grenfell

The U.K. government should consider amending regulations to require the additional removal of flammable cladding from apartment buildings if it wants to cut the cost of insurance for leaseholders, a trade body warned.
February 05, 2025
Audit Watchdog Seeks Rules For Sustainability Opinions

Britain's accounting regulator called Wednesday for the regulation of sustainability assurance reports by auditors and others to iron out current inconsistencies in quality.
February 05, 2025
Man Sentenced Over £60K COVID Travel Insurance Fraud

A man who pretended he was forced to cancel 14 holidays because of COVID-19 restrictions so he could claim more than £61,000 ($76,500) in insurance payouts has been sentenced at a London court to two years in prison, suspended for 18 months.
February 04, 2025
Sustainable Growth Must Take Pensions Priority, LCP Says

Government plans to drive growth in the U.K. through redirected investment from retirement savings schemes must prioritize environmental concerns and sustainability, a consultancy said Tuesday.
February 04, 2025
MPs Launch Inquiry Into AI Use In Financial Services

A cross-party group of members of Parliament has started an inquiry into the use of artificial intelligence in financial services, after recent revelations about Chinese AI startup DeepSeek showed the market's volatility.
February 04, 2025
HSF Steers Reinsurance Broker Buy For Miller

Insurance broker Miller said it has agreed to acquire specialist reinsurance broker AHJ Holdings Ltd. for an undisclosed sum, reaching a "major milestone," in a deal guided by Herbert Smith Freehills LLP and Stephenson Harwood LLP.
February 04, 2025
3 Firms Advise On £25M Pension Deal For Redress Program

The U.K.'s financial compensation scheme has passed £25 million ($31 million) of its staff pension liabilities to Pension Insurance Corp. PLC, the insurer said, in a deal guided by Herbert Smith Freehills LLP, Eversheds Sutherland and Arc Pensions Law LLP.
February 04, 2025
CMS Guides £120M Pension Deal For Lufthansa

Airline carrier Lufthansa has offloaded £120 million ($150 million) of its U.K. pension scheme liabilities to Royal London, the insurer said, in a deal steered by CMS Cameron McKenna Nabarro Olswang LLP.

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 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.
Anticipating The UK's Top M&A Trends In 2025

Conversations with market participants are focusing on five key questions about 2025's transactional markets, ranging from issues of artificial intelligence, to the boom in takeovers and increased regulatory scrutiny, says Layla D’Monte at King & Spalding.
Hawaii Climate Insurance Case Is Good News For Energy Cos.

The Hawaii Supreme Court's recent ruling in a dispute between an oil company and its insurers, holding that reckless conduct in the context of activities that can cause climate harms is covered by liability policies, will likely be viewed by energy companies as a positive development, say attorneys at Fenchurch Law.
The EU AI Act's Impact On Global Financial Regulation

The European Union’s new Artificial Intelligence Act, representing lawmakers’ first comprehensive attempt to regulate AI and giving special attention to the financial services sector, hopes to influence global legal and regulatory frameworks to maintain access to the EU market, say lawyers at Goodwin.
FCA Survey Results Reveal Rise In Nonfinancial Misconduct

After a Financial Conduct Authority survey recently reported a significant rise in nonfinancial misconduct, there are a number of preventive steps firms should take to create a healthy workplace environment and mitigate the risk of increased regulatory scrutiny, say lawyers at WilmerHale.
FCA's Broad Proposals Aim To Protect Customer Funds

The Financial Conduct Authority’s proposed changes to payments firms’ safeguarding requirements, with enhanced recordkeeping and fund segregation, seek to bolster existing regulatory provisions, but by introducing a statutory trust concept to cover customers’ assets, represent a set of onerous rules, says Matt Hancock at Greenberg Traurig.
Modernizing UK Trade Settlement Standard: The Road Ahead

Andrew Tsang and Tom Bacon at BCLP consider the rationale and challenges of a potential U.K. trade settlement acceleration, part of an initiative to modernize the financial market infrastructure, and suggest that incorporating distributed ledger technology as a synchronized recording system would facilitate the move.
A Look At UK, EU And US Cartel Enforcement Trends

The European Union, U.K. and U.S. competition agencies' recently issued joint statement on competition risks in generative artificial intelligence demonstrates increased cross-border collaboration on cartel investigations, meaning companies facing investigations in one jurisdiction should anticipate related investigations in other jurisdictions, say lawyers at Latham & Watkins.
What Green Claims Directive Proposal Means For Businesses

With the European Union’s recent adoption of a general approach to the proposed Green Claims Directive, which will regulate certain environmental claims and likely be finalized next year, companies keen to publicize their green credentials have even more reason to tread carefully, say Marcus Navin-Jones and Juge Gregg at Crowell & Moring.