New regulation to keep London insurers busy in 2018
Regulatory developments dominate priorities identified for the London company insurance market in 2018 by the International Underwriting Association (IUA).
Whilst preparations for Brexit will continue to attract a great deal of attention, the year will also see firms adapting to several other major changes to the supervisory environment.
“2018 will be an incredibly busy year from a regulatory perspective,” said Dave Matcham, IUA chief executive. “The need to establish mutual market access between the UK and EU and agree an implementation period before a new trading arrangement post-Brexit are incredibly important.
“In addition, at least three significant new regulations become effective during the year: namely, the General Data Protection Regulation, the Insurance Distribution Directive and the enhanced Senior Insurance Managers Regime.”
The IUA’s annual business plan also highlights 2018 as a pivotal year to prove that initiatives to modernise London’s business processing can deliver promised savings and efficiencies.
Market priorities on technology involve accelerating the use of new Target Operating Model (TOM) infrastructure projects, so that they can move towards a sustainable ‘user-pays’ funding model.
“The TOM programme can only be successful if e-placing is widely used and supported by enhanced capture of data in a structured manner,” Matcham noted. “Growing volumes and take-up for Placing Platform Limited is clearly a top priority.
“However, another very important project for 2018 will be completing the re-platforming of the Insurers’ Market Repository. Our members place huge reliance on the repository and it is, therefore, imperative that this process proceeds smoothly and does not cause market disruption.”
The IUA business plan also highlights the need to recognise changing risk profiles in maintaining best underwriting practices. A number of claims modernisation initiatives will be considered in an effort to improve customer experience and a voluntary Single Claims Agreement Party policy clause will be rolled-out.
