Andrew Bandurka
HFW Insurance Bulletin January 2018
1. Regulation and legislation
EU: “Accidental” damage and the importance of causation
Following a recommendation from the European Parliament, on 20 December 2017 the European Commission adopted a legislative proposal for a directive (COM (2017) 792/2) (Proposed Directive1) to postpone the date of the application of the Insurance Distribution Directive ((EU) 2016/97) (IDD) from 23 February 2018 to 1 October 2018 and recommended that an accelerated legislative procedure is applied to expedite the Proposed Directive. The IDD amends and replaces the Insurance Mediation Directive (2002/92/EC) and aims to enhance consumer protection and ensure a level playing field among all participants involved in the sale of insurance products.
The current deadline for Member States to transpose and apply the IDD is 23 February 2018. Under the Proposed Directive, the transposition date would remain 23 February, but the application date would be postponed to 1 October 2018. This would give firms within the insurance sector, including small operators such as one-person distribution businesses, more time to make the necessary technical and organisational changes to comply with the IDD.
2. Market developments
EU: Lloyd’s set to open in Brussels by 2019
Following on from its announcement in March 2017 that it had selected Brussels as it’s preferred location for an EU-based subsidiary, Lloyd’s of London has indicated that it is aiming to commence operations there as of 1 January 2019.
Brussels was chosen as a result of its established regulatory structure. It is hoped that dealings in Brussels will be ready to hit the ground running at the start of 2019. Inga Beale, Chief Executive of Lloyd’s of London noted that this date is “ahead of the actual official exit, but we run a market and we want to be ready for all of our businesses and syndicates that operate within the market. That’s why we are really pushing ahead.” Beale made this comment when attending a financial forum in Hong Kong earlier this month.
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