Most traditional insurers have started to use emerging technologies such as robotics and machine learning to drive greater efficiency in the front and back office. Yet, these technologies are not sufficient to keep pace with insurtechs and transition to a customer-centric business model.
Find out how insurers should prioritize their efforts in tackling the challenges in their legacy systems while developing a new technology stack to generate greater operational efficiency.
Consumer personal data is more bountiful today than ever before and becoming an increasingly valuable asset.
To protect their customers, their data, and their brand, organizations need to better understand how they are mitigating potential privacy and security risks to consumer personal data. They must take action through enhanced governance, risk management and compliance.
KPMG’s new Point of View paper, Data rich and regulation wary, outlines:
Transparency and Accountability
The Central Bank published aggregate statistical data relating to the 2017 year end. During 2017, the Central Bank reported that there were two successful applications for partial/full internal model approval (none in 2016); 7 authorisations granted to (re)insurance undertakings (2 in 2016); and 5 applications for approval of ancillary own funds (2 in 2016). The Central Bank also published a high level organisational structure as at 31 December 2017.
Third-Country Insurance Branches
Following a public consultation, early in May the Central Bank published a Policy Notice relevant to 3rd country (i.e. non-EEA) insurance undertakings seeking to establish a branch in Ireland. The Policy Notice, as well as the Handbook for Branches of Third-Country Insurance Undertakings, the Addendum to the Domestic Actuarial Regime, and the Guidance and Checklist for Completing and Submitting Applications for Authorisation of a Branch of a Third-Country Insurance Undertaking, set out the authorisation and supervision requirements that will apply to 3rd country branches established in Ireland.
2018 Supervisory Reporting Submission Dates
The Central Bank published the reporting deadlines that apply to (re)insurance undertakings with different financial years and quarters ending in 2018. The 2018 submission dates can be viewed here.
Anti-Money Laundering Bulletin
The Central Bank published its first Anti-Money Laundering bulletin of 2018. The Central Bank sets out its findings and expectations regarding AML/CFT risk assessments, PEP screening and transaction monitoring, and AML/CFT resourcing and training. Even though the bulletin relates to the Central Bank’s engagement with investment firms, including asset managers and stockbrokers, it may also be of interest to life insurance firms. The bulletin can be viewed here.
Potential policyholder exposure to CFDs and binary options
On 1 June EIOPA published a Statement voicing its support to ESMA’s temporary product intervention measures relating to contracts for difference (CFDs) and binary options. The measures include a prohibition on the marketing and distribution of binary options and several restrictions on the marketing and distribution of CFDs to retail investors. EIOPA also sets out its expectations regarding exposure to CFDs and binary options underlying insurance-based investment products distributed by life insurance firms.
Impact of Brexit on the Solvency II SCR
On 18 May EIOPA issued an Opinion advising national supervisory authorities to ensure insurance and reinsurance firms assess how the UK’s withdrawal from the EU will impact their technical provisions, SCR and own funds calculations. The Opinion describes the areas where the calculations may be affected, for instance the treatment of 3rd country reinsurance in the SCR standard formula calculation. The Opinion is available here.
4th EU-wide insurance stress test
On 14 May EIOPA launched its 4th insurance stress test. 42 European insurance groups will participate. The objective of this latest stress test exercise is for EIOPA to assess the vulnerabilities of the European insurance industry. The exposure to cyber risk and best practices in dealing with these risks will be assessed for the first time. The deadline for the submission of results to the national competent authorities is 16 August 2018. The relevant Press Release can be found here.
KPMG International is sponsoring the world’s first virtual festival on digital insurance – Global LIVEFEST 2018 hosted by The Digital Insurer (TDI), aimed at celebrating innovations in digital insurance around the world.
Global LIVEFEST is a live, virtual festival which includes five 4-hour conferences held around the world throughout November 2018 – North America, Europe, Asia, Africa and a Global finale. Through interactive web panel discussions, digital chat rooms and over 200 virtual booths that are open 24/7, the festival will allow you to network, gather resources and share knowledge globally with other professionals in the field.
To date, Global LIVEFEST has over 6,000 registrations from over 100 countries, including insurers, insurtechs and more. Register now for free and gain access to all 5 virtual festivals.
For the second consecutive year, KPMG in Singapore, along with Matchi, will present the Global Fintech Hackcelerator at the Singapore Fintech Festival (12-16 November), partnering with the Monetary Authority of Singapore (MAS). The Hackcelerator, powered by KPMG Digital Village, is looking for start-ups around the world with innovative and exciting ideas to address real challenges in the financial industry. There are 80 problem statements across three focus areas: Insurtech, Financial Inclusion, and Regtech/Suptech, as well as a General category. The shortlisted start-ups will receive guidance and mentoring from KPMG and Matchi fintech professionals, and the three finalists selected at the Festival will have the opportunity for continued support in commercialization of their solutions following the competition.
Register for our webcast and hear from a panel of global insurance professionals from KPMG, insurtechs and The Digital Insurer (TDI) as they share their perspectives on how insurers can leverage various technologies and automation to achieve operational excellence.
Date: Tuesday 12 June 2018
Time: 9:00am (UK) / 4:00pm (HK)
As a guest of KPMG, I would like to extend a complimentary invite to the second annual Global Insurance M&A, Strategy and Innovation Forum, taking place on 19 June in New York.
Hosted by Mergermarket, a world-renowned M&A research and media company, the forum will bring together the industry’s top dealmakers, strategy and innovation professionals who will discuss the use of M&A, partnerships and corporate venture capital to drive transformative changes across the insurance industry.
Additionally, delegates will be presented with the findings of our recent Global Insurance Deal Advisory study in which over 200 insurance executives world-wide were interviewed on their expectations for inorganic growth. This exclusive reveal will help you understand the key drivers shaping M&A, strategy and innovation in the insurance industry as well as the factors influencing the strategic deployment of capital for transformational and innovative objectives.
Breakfast and networking will be included, and registration is complimentary.