Regulation and Oversight
Solvency II and Captive Insurance: Evolving Regulations and Benefits
The revised Solvency II framework introduces proportionality measures and reduced capital requirements for EU captives. By addressing governance, reporting, and risk management, these changes aim to alleviate regulatory burdens while enhancing stability and flexibility. Captives are expected to benefit from tailored regulations that align with their unique risk profiles and operational scope. Learn More
UK Government Seeks Input on Captive Insurance Regulation
The United Kingdom is consulting on captive insurance regulation changes, focusing on lowering capital requirements, simplifying compliance, and enhancing competitiveness. Stakeholders can provide input on proposals like using protected cell companies and restrictions on life insurance coverage. Responses are due by February 7, 2025, via HM Treasury's consultation process. Learn More
Reforms Proposed to UK Insurance Special Purpose Vehicle Regulatory Framework
The Prudential Regulation Authority's proposed changes to the UK insurance special purpose vehicle framework aim to streamline processes, enhance flexibility, and boost global competitiveness. These reforms directly respond to stakeholder calls for a more attractive and efficient regulatory environment to increase participation in the UK market. Read More
IAIS Approves Global Insurance Capital Standard and Completes US Aggregation Method Review
The International Association of Insurance Supervisors (IAIS) has approved the Insurance Capital Standard (ICS) for internationally active insurance groups, offering a unified approach to capital adequacy. The US-developed Aggregation Method was also assessed and found to produce comparable results. The ICS will be recommended for adoption at the IAIS December meeting. Read More
Solvency II Review Enhances Proportionality for Captive Insurers
The European Commission's Solvency II review will simplify compliance for EU-domiciled captives by introducing the "small and non-complex undertakings" (SNCUs) category. Most captives will qualify, benefiting from eased regulatory requirements and improved proportionality in areas like governance and risk assessments. Read More
FERMA Highlights Key Risk Management Roles in AI and Sustainability Regulations
FERMA's policy notes on the European Union's Artificial Intelligence (AI) Act and Corporate Sustainability Reporting Directive highlight the key roles of risk managers in compliance, insurance implications, and sustainability reporting. Risk managers are advised to implement AI governance, assess "silent AI" risks, and align risk analysis with sustainability standards under the European Green Deal. Read More
IRS Moves Forward with Micro-Captive Regulations
The Internal Revenue Service (IRS) is working to finalize regulations aimed at tightening disclosure requirements for potentially abusive tax transactions, including those involving captive insurance companies using § 831(b) for tax treatment. These new rules are expected to increase compliance scrutiny, which could result in legal challenges as the IRS moves toward finalization. Read More