15 May 2012
The IFAs that sold Keydata Lifemark products are now starting to receive in the post from the FSCS's solicitors the legal proceedings issued to recover the compensation paid by the FSCS to clients who invested in Lifemark bonds on the advice of their IFA.
An IFA that receives the Claim Form will be invited to agree a 12 months stay of the proceedings to facilitate negotiations. This is the same tactic adopted by the FSCS last year in connection with the earlier proceedings which relate to the Keydata SLS products. The tactic proved to be tempting for IFAs since it allowed them time to try and get confirmation of cover for the claim from their professional indemnity insurers and if this was not forthcoming to decide whether they would (and could) pay the claim.
9 May 2012
All over the world we are seeing incidents of political violence on a greater scale, both in terms of severity and frequency. Local insurance markets are enhancing their products in an attempt to meet the increased risks to infrastructure, property and business. One of the latest developments relates to societal risks posed by political violence, in relation to which the Mexican Association of Insurers (AMIS) has proposed a new approach, as explained by Luis Alvarez Marcén during a panel session held as part of a day dedicated to insurance during The Mexican British Chamber of Commerce event "Mexico Week", run jointly with Lloyd's, which has taken place this week.
27 April 2012
Did George Bernard Shaw have in mind the Insurance Law Reports when he said that England and America are two nations separated by a common language? We suspect not. When Anaïs Nin said "we don't see things as they are, we see things as we are", was she musing on the approach of the judiciary to insurance policy interpretation? It is doubtful. However, both quotes are apposite in the context of international insurance policy interpretation.
26 March 2012
Nature does not favour creatures with two heads – probably because they spend most of their time arguing with themselves. But insurers are about to experience so-called “twin peaks” regulation, under two regulators, and will soon find out whether having two heads is really a formula for success.
The dangers of having two regulators pulling in opposite directions are obvious. The Financial Services Bill currently going through Parliament recognises this risk, with numerous requirements on the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) to consult, co-ordinate and co-operate regularly.
13 March 2012
DAC Beachcroft is alerting clients to the opportunity to submit Expressions of Interest (EOI) for awards from the West of England Local Enterprise Partnership's (LEP) Revolving Infrastructure Fund (RIF) before the impending deadline of Monday 19 March 2012.
Feedback from the latest LEP meeting on 9 March 2012, which DAC Beachcroft attended, suggests that the LEP has not been inundated with applications to date, so the advice to those who believe they may have a qualifying project is to submit an EOI before the deadline.
9 March 2012
All over the world we are seeing incidents of political violence on a greater scale, both in terms of severity and frequency. Local insurance markets are enhancing their products in an attempt to meet the increased risks to infrastructure, property and business. One of the latest developments relates to societal risks posed by political violence, in relation to which the Mexican Association of Insurers (AMIS) has proposed a new approach, as explained by Luis Alvarez Marcén during a panel session held as part of a day dedicated to insurance during The Mexican British Chamber of Commerce event "Mexico Week", run jointly with Lloyd's, which has taken place this week.
Mr Alvarez Marcén explained that the demand for these new wordings is a result of new levels of phenomena such as organised crime or unrest confined to particular geographical locations. Whilst such phenomena may be akin in some respects to looting, burglaries and syndicated crime, they are not all explicitly within the enumerated perils in standard wordings whether in exclusions such as NMA2918 or covers such as LMA3092. At the moment, there is a lack of consensus as to how overlapping or competing provisions in various policies may or may not operate, although ultimately one or another of the policies may be called upon to pay for all the losses flowing from these conflicts.
20 February 2012
In January 2012, the European Commission published its long awaited proposed General Data Protection Regulation. The Regulation promises substantial reform to the existing European data protection regime and would introduce significant financial sanctions for businesses which fail to comply. Arguably however, certain provisions simply build on the existing data protection principles already incorporated into Member States’ national law and until the Regulation comes into effect, it will serve as a useful guide to best practice and raise awareness of data security risks.
9 February 2012
The Government’s announcement that implementation of the Jackson reforms would be delayed until April 2013 was not exactly a surprise, but not necessarily welcome either. The Law Society were quick to endorse the delay, but wrongly tried to badge it as an opportunity for reflection and to change the main proposals.
2 February 2012
The European Commission has published its proposed reforms for European data protection legislation, including a new General Data Protection Regulation.
If adopted in its current form, the draft Regulation will significantly change the data protection regime for organisations in the EU. Those organisations which lose or have personal data stolen (for example, as a result of a hacking incident) will have to notify the data regulator without "undue delay" and "where feasible" within 24 hours of becoming aware of a breach. If individuals are likely to be adversely affected, they must also be notified.
1 February 2012
In times of drastic cut-backs, could the Health and Safety Executive (HSE) be increasingly targeting individuals in order to secure a more cost-effective conviction? Sally Roff and Jo Brook from international law firm DAC Beachcroft consider the implications of new figures released by the HSE in January 2012 and how organisations should be reacting to them.
31 January 2012
Damages for the late payment of claims and remedies for insurers against fraudulent claims are among proposals published by the Law Commissions in their latest consultation paper, released at the end of December.
The proposed reforms for late payment of claims would see insurance law brought into line with general contract law in England and Scotland, with legislation re-characterising insurers' primary obligation from a duty to prevent loss to a duty to pay valid claims after a reasonable time. Unreasonable delay or wrongful repudiation of a claim would then entitle policyholders to claim damages for proven and foreseeable losses.
20 January 2012
The previously unthinkable is being thought with greater frequency: will the euro survive?
On Friday 13 January 2012 Europe was plunged into a fresh euro crisis after France was stripped of its coveted AAA credit rating by Standard & Poor’s in a mass downgrade of nine euro zone countries. Speculation is rife that Greece is set to default on its debts due in 10 weeks, leading to Greece breaking away form the euro and a resurrection for the drachma.
16 January 2012
The previously unthinkable is being thought with greater frequency: will the euro survive?
Europe was plunged into a fresh crisis on Friday 13th January when France was stripped of its coveted AAA credit rating by Standard & Poor’s in a mass downgrade of nine eurozone countries. Speculation is rife that Greece is set to default on its debts due in 10 weeks leading to Greece breaking away from the Euro and a resurrection of the drachma.
15 January 2012
The European Commission's Christmas present to insurers last month was a set of Guidelines on the use of gender in setting insurance premiums, following the Test-Achats ruling on 1 March 2011. Unfortunately, once the wrapping paper is removed, this particular present is likely to disappoint.
11 January 2012
IFAs that advised clients to invest in Keydata products are under unprecedented attack by a combination of the FSA and the FSCS.
The FSA is visiting selected IFAs that sold Keydata products to examine the due diligence performed by the IFAs, the risk warnings given to clients and whether the products matched the risk profile of clients. The findings of the FSA's investigation could result in disciplinary action against individual IFAs and a compulsory review of past business.
29 November 2011
As CCGs begin to gear up for the process of authorisation, much is being said about good governance and its importance. But what does good governance mean, and how does the practice manager play an effective part in it? This article seeks to offer some views on the emerging picture, which is by no means clear, and discusses the role that governance can play in developing effective clinical commissioning.
23 November 2011
The European Commission has listed reform of the dispute resolution process and adoption of mediation as one of its 12 key priorities to boost growth and confidence in the single market and encourage cross-border trade. The Commission stated in a paper released last month that it intends to adopt legislation that will promote the use of alternative dispute resolution (ADR) in both consumer and business-to-business disputes. One possibility is the adoption of a scheme making mediation compulsory in every case. The Commission is expected to publish a Consultation Paper on this topic shortly.
15 September 2011
We are about to enter into a new era for financial services regulation in the UK. Although detailed oversight of financial services products, and sometimes even their price, is common in a number of countries, to date the UK has shied away from that approach.
14 September 2011
While Cyber Risk insurance products have been offered for many years, the market is still in its adolescence and offers insurers real opportunities to develop innovative products for new and existing sectors.
14 September 2011
It is beginning to become clearer to insurers what it will mean to be regulated by the Prudential Regulation Authority (PRA).