Welcome to our October 2015 newsletter. We are always keen to receive constructive comments and would welcome suggested topics and ideas from members on how to improve our newsletter.
~The Editorial Board~
We extend a warm welcome to the following new members.
Profile Risk Solutions
Accelerate Underwriting Ltd
Generation Underwriting Management Ltd
Royal Bank of Scotland
Regulatory Efficiency Gains (REG)
FCA – ONA update
Towards the end of 2014 the FCA launched “Connect”, their online system used by firms to submit applications and notifications. Connect has replaced all applications that were previously submitted via the Online Notifications and Applications (ONA) system.
FCA are reminding MGAA members that ‘read-only’ access is currently available to ONA users, which means that existing users of ONA are able to continue to view previously submitted applications. ‘Read-only’ access to ONA will no longer be available to access after 8pm on Friday 23 October 2015.
Firms should ensure that they have saved any forms or documents they may require in advance of this date as the FCA will not be able to supply copies afterwards.
Firms who do not have access to Connect will need to register before they can create or submit any notifications. More information is available here.
FCA Supervisory model
Over the last two years the FCA has taken on a whole range of new functions and powers. Their new strategy sets out how, in the light of this, they intended to develop a more sustainable model of regulation, with new ways to prioritise their work. The FCA are aware that they have to do more to ensure their resources are deployed efficiently, and that they can act quickly, effectively and proportionately, using all of the wide range of tools at their disposal, and that they are able to continually evolve as MGAs do.
In April they outlined the structural changes made to the Authorisations and Supervision divisions to support the new strategy. The split into the Retail & Authorisations, and Investment, Wholesale & Specialists Supervision Divisions recognises the fact that FCA supervise diverse sectors where risks may be very different across sectors but common across firms within a sector.
They are now making further changes to the supervisory model, including how to classify firms, to support this sector-based approach. They will continue to look at the way MGAs and people behave, but will also increasingly look at how markets work as a whole, with greater emphasis on sector and market-wide analysis.
Consumer Rights Act, 2015
Adam Johnson from legal firm EC3\legal explains what this means and how it affects MGAs in the coming months. To download a copy of this paper click here.
Lloyd’s have recently issued a number of Market Bulletins which are directed at MGAs and delegated authority.
UK insurance premium tax (IPT) rate change (2015) Y4918
Coverholder Reporting Standards Y4919
Allowance for changes to the Solvency II Technical Provisions in 2016 year of account September SCR submission Y4920
Code for Underwriting Agents: UK Personal Lines Claims & Complaints Handling – Charges for Telephone Calls – Update Y4924
Pool Re continue their market liaison and their website has up to date information on their activities. For full details click here.
Members are reminded of the recent market briefing by Flood Re, to listen to the podcast by clicking here. For details of Flood Re and their current news click here.
Financial Ombudsman Newsletter
The Ombudsman has issued the following newsletters
127, [August] can be seen here
128, [September] can be seen here
Information Commissioner Newsletter
In this month’s issue the ICO has identified their recent enforcement action which resulted in a civil monetary penalty of £180,000. This was issued to The Money Shop after personal data on two of their servers was compromised.
The Information Commissioner has issued their August newsletter which can be downloadedhere. The ICO’s September newsletter is available here
Enterprise Bill: inclusion of Law Commissions' late payment provisions
The Law Commissions' recommended clauses on late payment of insurance claims have been introduced into Parliament as part of the Enterprise Bill.
Members may recall that these clauses were considered unsuitable for the special parliamentary procedure for Law Commission bills and so were not included in what is now the Insurance Act 2015. However, the Government was supportive of the policy and had said it would look to bring the provisions forward at a future legislative opportunity. The Enterprise Bill has presented that opportunity. You can access the Bill here
Global sanctions & financial crime seminar
Regulatory DataCorp (RDC) has invited MGAA members to their market event to be held on the 30th November, 2015. The venue is the Lloyd’s Library and will start at 16:30 with refreshments at One Under Lime afterwards to 20:00. To register for this event click here.
For those of you who missed our last compliance newsletter this can be viewed here
Our compliance consultant, CMS, has updated our regulatory calendar which can be accessed here
On the Road
Post the summer holidays the MGAA’s Managing Director will embark upon 3 more regional talks and members are invited to join him at the following locations:
Stoke-on-Trent 20th October
Southampton 28th October
Leicester 2nd December
For further details email email@example.com
Folgate Insurance Company
The MGAA wish to congratulate Folate Insurance Company who has returned to active underwriting in the UK and central Europe. Members will recall that Folgate Insurance Company was established in 1877 but ceased to underwrite several years ago. However a year after being acquired by APC Underwriting they have recommenced underwriting on a quota share basis in conjunction with a Lloyd’s syndicate. Its' combined £30m of capacity will support the expansion plans of APC’s MGA in the UK and Continental Europe. In addition, Folgate is seeking to provide capacity for other MGAs in 2016.
Welcome to the first Not for Profit newsletter from PKF Littlejohn. The aim is to pull together current sector news, issues and opportunities in an easily digestible format to act as a regular update for everyone involved in the financial, governance and strategic side of running a not for profit organisation. This information might be of assistance to your clients who fit within this category.
PKF Littlejohn are hosting a Broking breakfast briefing: "Tax update for brokers and MGAs" on 14 October 2014. To register click here.
Lloyd’s meet the market - Birmingham
Jane Comerford will be at the Lloyd’s ‘Meet the Market’ event on Wednesday 7th October 2015 at the Hilton Metropole in Birmingham. Please drop by and have a chat about issues on your agenda.
The Insurance Charities
Members will recall that the MGAA Executive sit on the Insurance Charities Board and Grants Committee. The Insurance Charity has issued their summer newsletter and a copy can be obtained here.
We wish to remind members that whilst fundraising is a vital part of the work undertaken by the Insurance Charities they are also looking to help members of the insurance community and as such would welcome news of where the charities could help our fellow insurance professional.
Almost 18,500 people have signed up to Friends in Need, the micro community funded by The Insurance Charities to support people with depression. Loneliness often accompanies the curse of depression and the micro community enables individuals to build around them support networks which are vital to maintaining recovery. If you or someone you know would benefit from receiving and giving support when depression hits visit friend’s in need
At the Charity’s AGM on 24 September Allen Prior, formerly with St James’s Place, was appointed President for the year 2015/6. During his year of office Allen will see in changes to the Charity’s Governance to bring it more in line with good practice within the sector and business world, in general.
Allen Prior (President 2015/16) and Adrienne O'Sullivan (President 2014/15)
On the 29th October 2015, the insurance industry will celebrate youth and achievement in the broader community. A music concert will be performed and hosted by Willis at their London headquarters.
SAFE Gorton is an outreach programme, started in 2010, based in Gorton South, the fourth most deprived ward in Greater Manchester. It is an inclusive, multigenerational and multicultural community project which has made a significant impact in bringing the local community together with a special focus on creating career opportunities for the young generation growing up in an area afflicted with social problems associated with crime and unemployment.
To book your ticket to this event click here
In the spirit of “Movember” members of the MGAA will be supporting this event with a charity raising evening on Monday the 2nd November, commencing at 6pm. This event will be held at the Broker wine bar in Leadenhall Market which will see senior partner of EC3\legal, David Coupe, attempting to grow a moustache.
The Anti-movember will see the MGAA’s Managing Director having his moustache shaved off, after more than 40 years.
All proceeds will go to fighting pancreatic cancer for further details about “Movember” log ontohttp://moteam.co/moustache-marvels
Insly software solution presented at the last Market Briefing on 23rd September. To read their current newsletter click here.