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2nd December 2018

Newslink Global Insurance Trends-The Week

This week, the Association of British Insurers(ABI) director general referring to the EU leaders agreeing terms of the UK exit plan said "It remains vital for our industry’s customers that we have an orderly withdrawal process and transition period and any progress towards that is welcome." The Financial Conduct Authority(FCA) published its EU Withdrawal Impact Assessment. The assessment was requested by the Treasury Select Committee and sets out the impact of the Withdrawal Agreement and future framework on the FCA's objectives. The FCA also published its letter from Andrew Bailey, FCA chief executive to Nicky Morgan MP, chair of the Treasury Select Committee, saying that an implementation period is preferable to exit next March but there is good reason to keep it to a minimum. Insurance Europe commented on the EC update on the progress of its Capital Markets Union(CMU) project with reference to Solvency II and long-term investment constraints. EIOPA published for consultation its draft technical advice on possible amendments to the delegated acts under Solvency II and the Insurance Distribution Directive(IDD) concerning the integration of sustainability risks and factors, and also released its European Insurance Overview 2018.
The London Market plans to deliver Sharia-compliant capacity for Islamic commercial risks with the Islamic Insurance Association of London(IIAL) launching a set of Guiding Principles. Fraudsters who lie in order to make false insurance claims could face jail much more readily following a ruling by the courts, according to Clyde & Co.
A global survey by Intertrust said 65% of senior financial services industry decision-makers believe that technologies such as Artificial Intelligence, blockchain and robotics will have a positive impact on their business in the future yet only 33% say they are being deployed today. Whilst supporting the UK Government launching three research projects to investigate the potential for AI, Pegasystems said there needs to be a cautious approach as regards its application to the insurance market.
Gemini, a claims expert management solution and platform for Lloyd’s carriers, was launched. CoreLogic estimated total losses from the two recent Californian wildfires at between $15bn and $19bn. The Portuguese business unit of Ageas(Ageas Seguros) selected Duck Creek Claims and Duck Creek Policy as its transformation platform, US InsurTech Lemonade is to enter the European marketplace, and Majesco moved for Dublin-based Exaxe. Sapiens IDIT suite solution was chosen by Ecclesiastical, SSP successfully implemented its digital “as a service” platform for RACQ, Queensland’s premier motoring body, Tata Consultancy Services(TCS) announced an expansion of its ongoing 12-year old partnership with the Phoenix Group, and Willis Towers Watson is to launch new software in early 2019 to help businesses implement IFRS 17.
Allianz received approval for the preparatory establishment of an insurance holding company in China, whilst AXA entered into an agreement with the current domestic shareholders of AXA Tianping Property & Casualty Insurance Company to acquire the remaining 50% stake. Later in the week, Allianz held a Capital Markets Day, and AXA a bullish Investment Day with emphasis on Asia, AXA XL, and capital management. Chubb launched a new service for multinational companies and large middle market businesses which combines its Terrorism & Political Violence(PV) underwriting, Risk Engineering, Global Security, Catastrophe Modelling and Digital expertise. Marsh was awarded the first licence to provide captive insurance management services in Abu Dhabi. There were senior appointments at CNA Hardy, Hamilton Re, Lloyd's, and Thatcham Research Centre.
Full articles on the above topics are included in those added this week to the Newslink Global Trends Database Matrix Resource at www.onlystrategic.com