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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.
December 20, 2024
Many Firms Lack AI In Risk Operations, Study Finds

A new study highlighted by UK Finance on Friday has found that almost four in 10 financial services organizations have not implemented artificial intelligence in their risk operations, leaving them with a widening technology gap compared with those who are so prepared.
December 20, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen the University of Southampton sue a drone-maker over the rights to an uncrewed aircraft patent, Importers Service Corp. and its subsidiary ISC Europe take action against a former director who allegedly owes the company over £1.1 million ($1.4 million), and DAC Beachcroft face a fraud claim by a "prolific litigant."
December 20, 2024
Pension Scams Body Held Back By Lack Of Industry Funding

An influential campaign group on pension scams said Friday that it will not be able to play a bigger role in raising awareness without funding from the retirement sector.
December 20, 2024
Law Firm Awarded £4.2M For Co.'s Mishandled PPI Claims

A London court awarded a specialist litigation law firm almost £4.2 million ($5.3 million) on Friday for the costs of a professional services company's botched handling of payment protection insurance claims.
December 20, 2024
Pinsent Masons Hires Brabners' Head Of Pensions

Pinsent Masons LLP has recruited the head of Brabners' pensions team to join its growing pensions practice in Manchester, as the firm looks to respond to the continued consolidation of the pensions market.
December 20, 2024
The Biggest UK Commercial Litigation Cases Of 2024

The High Court and Court of Appeal resolved some landmark legal disputes in 2024 — the justices liberated the open-source cryptocurrency community from spats over intellectual property protection and determined liability for the high-profile collapse of London Capital & Finance.
December 20, 2024
Top UK Court Won't Hear Excel Biz Interruption Test Case

The U.K. Supreme Court has blocked an effort by insurers to overturn a landmark insurance test case ruling involving the Excel exhibition center in London, with thousands of policyholders now in line for payouts for losses from the COVID-19 pandemic almost five years ago.
December 20, 2024
Financial Adviser Colbourne In Default After FCA Restrictions

The Financial Conduct Authority has said that Colbourne & Co., an independent financial adviser that it has prevented from doing regulated business, is in default and that clients can claim compensation.
December 19, 2024
Arsenal, Liverpool Settle With Insurers In COVID-19 Dispute

Two Premier League clubs have hammered out a settlement with their insurers over a multimillion-pound lawsuit on COVID-19 business interruption claims.
December 19, 2024
Lloyd's Syndicate Says £1M Property Claim Exaggerated

A Lloyd's syndicate has denied owing £1 million ($1.25 million) to cover costs of subsidence damage to a property in southern England, arguing the owner fraudulently exaggerated the claim and submitted false documents.
December 19, 2024
Sacker, Kramer Levin Lead £340M British Airways Pension Deal

The pension scheme for British Airways staff said on Thursday it has completed a £340 million ($425 million) reinsurance deal, transferring the risk of its members living longer than expected.
December 19, 2024
PRA Pushes Back 'Solvent Exit' Rules For Insurers

The Bank of England has pushed back a new regime designed to minimize the economic fallout of the collapse of a major insurer.
December 19, 2024
FCA Proposes To Simplify Investment Product Information

The financial regulator of the U.K. said Thursday that it has proposed changes to rules to simplify the information provided to investors to "boost confidence and drive investment" in the country.
December 19, 2024
UK Private Stock Market May Fail To Attract Investors, Firms

A world-first regulated market that the U.K. government has proposed for private companies to trade shares might fail to offer enough of an incentive to attract firms and investors.
December 18, 2024
Insurers Say Arbitration Is Proper In $7M Ida Damage Suit

A group of international and domestic insurers asked a Louisiana federal judge to keep in place an order to arbitrate a $7 million Hurricane Ida damage claim, disputing a property owner's argument that state law has a say in the matter.
December 18, 2024
DWF Dublin Adds Insurance Pro From DAC Beachcroft

DWF LLP has hired an insurance specialist to head the firm's practice in Dublin and become managing partner of the firm's Irish offering, as it moves to strengthen its presence in the area with "a light hand on the rudder."
December 18, 2024
Gov't Urged To Pause State Pension Reform Before Review

The government must pause any further policy decisions on the state pension until it carries out its review into retirement savings adequacy, experts told lawmakers Wednesday.
December 18, 2024
Pension Bodies Call For Regulation After Court Ruling

The government should issue regulation to clarify the scope of a landmark Court of Appeal ruling that could potentially cost pension providers billions of pounds in redress, a coalition of trade bodies has said.
December 18, 2024
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.
December 18, 2024
UK Must Address Regulatory Bias Toward Risk, ABI Says

Regulation in the U.K. has become heavily weighted toward risk rather than growth and its "structural bias," which creates layers of rules in the financial services sector, must be tackled, the Association of British Insurers said Wednesday.
December 18, 2024
Kennedys Elects Financial Lines Pro As New Senior Partner

Kennedys named on Wednesday a financial lines expert as its new senior partner to replace Nick Thomas, who is stepping down from the role after 27 years.
December 17, 2024
Gov't Ignores Calls For Redress Over State Pension Failings

The Labour government said on Tuesday it will not compensate women affected by historical failures to inform them that their retirement age had changed, in a move campaigners called an "unprecedented political choice" set to have long-term repercussions.
December 17, 2024
MPs Quiz Gov't Over Pension Credit Delays

Lawmakers are asking the government what it is doing to tackle a deluge of pension credit claims, amid fears that those below the poverty line might not receive a winter fuel allowance this season.
December 17, 2024
Broker Banned For 'Lack Of Integrity' Over Indemnity Risk

The director of a mortgage broker who demonstrated a "lack of integrity" has been banned and must pay a £10,000 ($12,700) fine after a London appeals court ruled Tuesday that he recklessly risked his company operating without professional indemnity insurance.
December 17, 2024
Barclays Loses Challenge To Major UK Motor Finance Ruling

Barclays lost its challenge to a decision that found it had treated a customer unfairly by paying commission to a car finance broker as a London court ruled on Tuesday that the relationship was unfair and not adequately disclosed.

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

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.
EU Reports Signal Greenwashing Focus For Financial Sector

Reports from the European Supervisory Authorities on enforcement of sustainability information, plus related guidance issued by the European Securities and Markets Authority, represent a fundamental change in how businesses must operate to maintain integrity and public trust, say Amilcare Sada and Matteo Fanton at A&O Shearman.
Embedding Consumer Duty: 6 Areas Firms Should Prioritize

The Financial Conduct Authority has repeatedly emphasized that complying with the Consumer Duty is not a tick-box exercise but an ongoing responsibility, so firms need to show that the duty is at the heart of their practices by staying compliant in areas from cultural change to customer vulnerability, say Nicola Higgs and Becky Critchley at Latham.
Insuring Lender's Baseball Bet Leads To Major League Dispute

In RockFence v. Lloyd's, a California federal court seeks to define who qualifies as a professional baseball player for purposes of an insurance coverage payout, providing an illuminating case study of potential legal issues arising from baseball service loans, say Marshall Gilinsky and Seán McCabe at Anderson Kill.
What Steps Businesses Can Take After CrowdStrike Failure

Following last month’s global Microsoft platform outage caused by CrowdStrike’s failed security software update, businesses can expect complex disputes over liability resulting from multilayered agreements and should look to their various insurance policies for cover despite losses not stemming from a cyberattack, says Daniel Healy at Brown Rudnick.
What To Expect From Labour's Pension Schemes Bill

The Labour government’s recently announced Pension Schemes Bill, outlining key policy areas affecting the retirement savings sector, represents a positive step forward for both defined contribution scheme members and defined benefit superfunds, but there are some missing features, says Sonya Fraser at Arc Pensions.
What EU Opinion May Mean For ESG Product Classification

The recently issued European Supervisory Authority opinion on the Sustainable Finance Disclosures Regulation offers key recommendations, including revising the definition of sustainable investments and making principal adverse impacts consideration mandatory, that could sway the European Commission’s final approach to product classification, say lawyers at Debevoise.
Insurance Rulings Show Court Hesitancy To Fix Policy Errors

Two recent Court of Appeal insurance decisions highlight that policyholders can only overcome policy drafting errors and claim coverage if there is a very obvious mistake, emphasizing courts' reluctance to rewrite contract terms that are capable of enforcement, says Aaron Le Marquer at Stewarts.
EU Investment Fund Standards Offer Welcome Clarity

The European Commission’s recently published regulatory technical standards for long-term investments, which granted managers greater flexibility with respect to open-ended European long-term investment funds, should help managers active in the space navigate the mandatory liquidity requirements for long-term investment funds, say Zac Mellor-Clark and Nishkaam Paul at Fried Frank.