Regulation and Oversight

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. Read More

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

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

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'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