ILS provisions added to Bank of England and Financial Services Bill

The UK government has proposed amendments to the Bank of England and Financial Services Bill (the Bill), which if enacted, would pave the way for Insurance Linked Securities (ILS) and collateralised reinsurance business activity in London.

The Enterprise Bill and damages for late payment

The Enterprise Bill 2015 contains clauses concerning controversial measures (originally included in, but later removed from, the Insurance Act 2015) concerning the rights of policyholders to claim damages for late payment of claims. Cooley partner David Kendall has written an article on this important issue, originally published in Insurance Day, […]

The Senior Insurance Managers Regime for Solvency II firms: A practical guide

Cooley and the Insurance & Reinsurance Legacy Association (IRLA) have published a practical guide to the UK PRA’s Senior Insurance Managers Regime. The guide is available here. A fully cross-referenced version is available on request from Cooley.

Commercial court considers application of aggregation clause

An insurer’s attempt to aggregate £10 million in claims, and thereby cap its pay-out to £3 million, has been rejected by the Commercial Court in the case of AIG Europe v OC320301 LLP [2015] EWHC 2398 (Comm).   The decision turned on the interpretation of the aggregation clause and, more specifically, […]

Commercial court considers scope of “materiality”

In Brit UW Ltd v F&B Trenchless Solutions Ltd [2015] EWHC 2237 (Comm) the Commercial Court provided guidance on the circumstances or information that are “material” to an insurer for the purposes of underwriting a risk.

Insurance Distribution Directive approved by the Permanent Representatives Committee on behalf of the Council: next steps

Coreper has approved the trilogue agreement on the proposed Insurance Distribution Directive (the IDD), on behalf of the European Council. The IDD is expected to be “minimum harmonising”, so the European Member States will be entitled to require more of the insurance distributors registered in their respective jurisdictions than the IDD […]

Solvency II third-country equivalence – an unexpected fly in the ointment

The European Parliament has published an exchange of letters between the chair of its Economic and Monetary Affairs Committee (Roberto Gualtieri) and the European Commissioner for Financial Stability, Financial Services & the Capital Markets Union (Jonathan Hill).

Court of Appeal considers operation of condition precedent to liability

In Milton Furniture Limited v Brit Insurance Limited [2015] EWCA Civ 671, the Court of Appeal considered whether Jay J was correct to deny Milton the right to an indemnity under its insurance policy for losses suffered as a result of a fire at its premises, on the basis that […]

FCA call to action: rule breaches in general insurers’ delegated authority & outsourcing arrangements

An FCA Thematic Review suggests that many more rule breaches are occurring in the general insurance market than we might have expected; and that insurers, intermediaries and outsourced-service providers should act quickly to identify and resolve them, if they want to avoid regulatory action. The FCA’s “Thematic Review TR15/7 – Delegated authority: Outsourcing in the general insurance market” takes a […]

High court considers scope of duty to notify claims

The case Maccaferri Limited v Zurich Insurance Plc [2015] EWHC 1708 (Comm) concerned a claim brought against the insurers (Zurich) for refusing to indemnify the insured Maccaferri (Maccaferri). The relevant policy included an obligation to “give notice in writing to the insurer as soon as possible after the occurrence of […]