IFSAPPG Member Update
Please find below the latest update from the Insurance & Financial Services All-Party Parliamentary Group.
Since our last meeting, we have continued to engage on a number of areas including: Post-Brexit priorities, travel insurance and the impacts of Covid 19, cladding and building insurance, and the industry concerns surrounding the rollout of Automatic Lane Keeping Systems (ALKS).
Its on the topic of ALKS that the IFSAPPG, alongside the ABI and Thatcham, met with the transport Minister Rachel McLean MP to discuss industry concerns and views on ensuring the technology is launched safely and successfully.
Looking ahead, the IFSAPPG plans to host its Annual General Meeting on the evening of 12th April, with a discussion session open to members to follow (further information to follow). We are also in the process of organising a public session on insurtech, covering the opportunities for the UK and the insurance market, but also the challenges faced by insurtech businesses, and way to unlock their potential. This is planned for mid-May, with a formal date to be confirmed.
In other news, our colleagues at the Institute and Faculty of Actuaries, has teamed up with Lord Bird and has written to the Chancellor ahead of Wednesday’s budget to ensure the government reaffirms its commitment to sustainability and intergenerational fairness. They are still looking for colleagues from across financial services to sign up in support, which can be done by email email@example.com before 10:00 am on 2nd March.
For those interested in conversations around Solvency II reform, I wanted to draw your attention to a new report published by KPMG and commissioned by the Association of British Insurers. One of the headline figures to come through from their analysis is that if Solvency II is reformed appropriately, it could unlock £95 billion for re-investment or to be redeployed, the equivalent of the budget of 11 UK government department budgets. The full report is attached above.
Colleagues at the City of London Corporation wanted to draw member’s attention to a new report by IRSG and DAC Beachcroft entitled: ‘How the trend towards data localisation is impacting the financial services sector’. The IRSG is an advisory body to the City of London Corporation, and to TheCityUK.
The report finds that the financial services sector, which is inherently international, is increasingly unable to share data across borders on the same basis as in the past. One such reason is because, in recent years, the implementation of data localisation requirements has increased globally. The IRSG believes that such measures often given rise to unintended consequences, and may have a contrary impact to that which is intended. A copy of the report can be accessed here.
Finally, The Cabinet Office sponsored Access to Insurance Working Group is pleased to announce the launch of the ‘Explaining underwriting decisions’ agreement, with the support of the market and charities.
This is a cross sector commitment to explaining underwriting decisions to people applying for Life, Critical Illness and Income Protection insurance. So far 19 insurers have signed up already, with agreement coming into force in December 2021, and it applies to anyone who is not offered insurance or is offered insurance at a higher premium or with an exclusion due to their medical history.