KPMG International is pleased to be a sponsor of the Financial Times Insurance Innovation Summit on 11 April 2018 in New York City. This event will bring together leading executives and industry experts to provide insights on how insurers should balance growth, customer satisfaction, agility and innovation in order to stay ahead and remain successful in this rapidly evolving industry.
KPMG is participating as the opening keynote speaker and panelist at this event. The FT has put together a diverse agenda featuring speakers and panelists from traditional players, insurtechs and technology firms.
As a valued client, I wanted to ensure you had a complimentary invitation to attend. If you are interested, please register using this dedicated link. This invitation is non-transferable, so if you are unable to join, please let me know. In the meantime, you can find full details of the agenda and confirmed speakers on live.ft.com/FTIIS.
EIOPA Recommends Further Simplifications To The Calculation Of Insurers’ Capital Requirements
On 28 February, EIOPA submitted to the European Commission its second and final set of technical advice on changes to Commission Delegated Regulation (EU) 2015/35 with regards the calculation of the Solvency Capital Requirement using the standard formula. EIOPA’s technical advice, which it publicly consulted on, also includes EIOPA’s Feedback Statement on the main comments received on the consultation paper (EIOPA-CP-17-006). EIOPA’s second set of technical advice can be found here.
EIOPA responds to the European Commission’s Public Consultation on Reporting to Supervisors
On 5 March, EIOPA published its response to the European Commission’s public consultation on the cost of compliance with supervisory reporting requirements (in force as of the end of 2016), as well as on the consistency, coherence, effectiveness, efficiency, and added value of those requirements - ‘Fitness check on supervisory reporting’. In the response, Gabriel Bernardino makes reference to EIOPA’s planning for the review of the Solvency II regulations setting out the reporting requirements.
The Consultation Document on Fitness Check on Supervisory Reporting is available here; the consultation period ends on 14 March 2018.
European Pensions Sector - EIOPA’s Priorities
During his keynote address at the 19th Annual Handelsblatt Conference, EIOPA’s Chairman - Gabriel Bernardino - spoke about EIOPA’s priorities regarding Institutions for Occupational Retirement Provision (IORPs); the IORP II Directive which is due to be transposed into national law by January 2019; and the potential benefits of Pan-European Personal Pension Products (PEPP). Gabriel Bernardino’s speech is available here.
IDD: Postponement of Application Date and Transposition Date
On 9 March, following the Parliament’s approval, the Council of the EU adopted a directive postponing the application date of the Insurance Distribution Directive (IDD) to 1st October 2018. Similarly, the new Directive extends to 1st July 2018 the deadline for transposition of IDD into national laws and regulations.
OECD High-level principles on financial consumer protection
On 12 February, the OECD’s Committee on Financial Markets published a report setting out the key drivers of conduct risk: 'Financial consumer protection risk drivers: A framework for identification and mitigation in line with the high-level principles on financial consumer protection'. The objective of the report is to provide a basis from which to establish a framework for conduct risk assessment in line with the G20/OECD High-Level Principles on Financial Consumer Protection (the Principles). The report is thus of interest to financial regulators and financial services entities, including insurance entities.
The OECD also published a report entitled 'Considerations for the application of the G20/OECD high-level principles on financial consumer protection to digital and alternative financial services'. In its discussion report, the OECD speaks about how whilst the digitalisation of financial services can promote financial inclusion, it may also increase the risk of exclusion for some groups and how the use of big data for pricing financial products, such as insurance, may also present a risk for the access for certain groups: for instance, higher risk populations could be charged unaffordable premiums, making them effectively uninsurable. The OECD also proposes that “Regulations should not pose an undue barrier to entry for small financial start-ups with innovative ideas whic h promise real consumer benefit, and proportionality can help to allow these firms to enter the market and prove their value
Cyber risk is a bridge between tangible and intangible assets, which leaves organisations exposed to a much wider scale of damage, which is not often adequately insured, since cyber insurance has historically been focused on digital assets, such as client’s personal data or transactional data.
The increase in cyber attacks, along with its wider impact, has led insurers’ clients and insurers to rethink the knock-on effect on other insurance lines like personal (reputation), property (physical damage), intellectual property (competitor information), etc.
The unfolding of cyber insurance developments from a single focus on digital assets to encompassing other asset classes is a nascent one, with current insurers struggling to use traditional methods to model these risks, especially in the light of minimal, and unrepresentative, data. Those who do will be well positioned to grab significant share of what is growing market.
Click here to read more. (PDF, 1.78MB)
Machine learning, AI and new technologies are certainly opening up great potential to improve health systems and services. However, there are significant barriers that need to be overcome for healthtech to reach its full potential through the industry.
Meanwhile, these barriers and uncertainties also poses many questions and risks for insurers around data privacy, liability, pricing, ethics and even their demand forecasting and costing models.
Find out more about the challenges and opportunities healthtech will bring to the insurance industry.
Please contact me if you would like to discuss how we can help you navigate what healthtech means for your business.
Hear from global insurance professionals
Register for our webcast and hear from a panel of global insurance professionals from KPMG and The Digital Insurer (TDI) as they share their views on healthtech trends and impact on the insurance industry.
Date: Wednesday, 21 March 2018
Time: 9:00am (UK) / 5:00pm (HK)
How do you manage the uncertainty caused by Brexit? Our Brexit Navigator is designed to help businesses with cross-border or cross-channel interests or customers to plot out the key decision milestones.
We will continue to share with you important matters as they happen on our Brexit website.
The International Accounting Standards Board’s (IASB) long-awaited insurance contracts standard was finalised in May 2017. The implications for the industry are profound.
To help you navigate through the changes, KPMG Ireland is pleased to host a series of webcasts and webmails during 2018 focusing on key aspects of the standard, the business impacts, and how they can be best addressed to ensure an efficient and secure transition.
The focus will be on
We hope you continue to find our IFRS 17 series of interest.