HFW: Insurance Bulletin – November 2020
In this issue:
FCA reports on general insurance pricing practices – changes are coming
The FCA has published its final report on its market study on general insurance pricing practices. The report concludes that general insurance markets are not working well or delivering good outcomes for all consumers, and the FCA has indicated that it will take action to remedy this.
The FCA indicators for assessing fitness and propriety (Senior Managers and Certification Regime)
On 9 December 2019, the Senior Managers and Certification Regime (SMCR) replaced the Approved Persons Regime for most solo-regulated firms. Accordingly, firms must assess employees performing a Senior Management or Certification function at least once a year, to ensure they are fit and proper for their role.
COVID-19 Business Interruption Losses: English High Court confirms loss of use is not equivalent to physical loss of property
One issue not considered in the recent FCA business interruption test case was whether the presence of COVID-19 could constitute physical damage so as to trigger BI wordings covering interruption arising out of “damage” to insured property.
English Supreme Court confirms principles for determining the governing law of an arbitration agreement
Enka Insaat Ve Sanayi AS v OOO Insurance Company Chubb ( UKSC 38) is an important decision in an area where there have been conflicting judgments, and will be of interest to all who wish to make use of arbitration.