Insurance updates

Austria

Contributed by Schoenherr Attorneys at Law
FMA publishes new circulars concerning PRIIPS and remuneration policies
  • Austria
  • 13 March 2018

The Financial Market Authority (FMA) recently published a new circular concerning key information documents for packaged retail and insurance-based investment products. The FMA had already published a revised version of its circular on sound remuneration policies and practices on January 19 2018.


Brazil

Contributed by Kincaid | Mendes Vianna Advogados
Court finds P&I club not directly and jointly liable for associate shipowners' debts
  • Brazil
  • 21 August 2018

The Sixth Civil Chamber of the Rio de Janeiro State Court of Appeals recently decided that a protection and indemnity (P&I) club was not liable for an associate shipowner's debts. In its decision, the court distinguished the P&I club from insurers operating in the Brazilian insurance market. This decision is paramount because it creates an important court precedent regarding P&I clubs' liability for the damages caused to third parties by their associates.


Chile

Risk-based capital of insurers
  • Chile
  • 13 June 2017

The securities and insurance regulator (SVS) recently published for comment the fifth version of its methodology for determining the risk-based capital of insurers. The latest version ‒ as well as the conceptual bases developed by the SVS for analysis, discussion and improvement ‒ includes a number of changes from the previous version and will be subject to public consultation until July 31 2017.


China

Contributed by AnJie Law Firm
Shift towards digital insurance and its regulation
  • China
  • 02 October 2018

Ping An Insurance (Group), a relative newcomer to the insurance industry, now ranks among the world's largest and most valuable insurers. Notably, its use of technology to embrace new business models that supplement its core insurance offerings is indicative of a wider global trend of providing customers with digital, added-value services. However, in China, this evolution towards added-value ecosystem-related services and the potential advantages on offer is marked by a different set of market considerations.

Rise of private health insurance: challenges and opportunities
  • China
  • 17 July 2018

Despite a range of stakeholders having vested interests in developing the private health insurance market, it has remained underdeveloped and is generally considered by Chinese insurers to be unprofitable compared with life insurance lines. Insurers have also found it hard to stimulate uptake by a consumer base that is relatively unfamiliar with the added value of such products. As such, the Chinese health insurance market is not as mature, innovative or profitable as it could be.

How can foreign-invested insurers apply new CIRC regulation by reference?
  • China
  • 17 April 2018

The China Insurance Regulatory Committee recently promulgated the new Measures for the Administration of Equity in Insurance Companies, which state that if the shareholding proportion of an insurer's foreign shareholders accounts for more than 25% of its registered capital, the relevant provisions of the measures must be applied by reference. This express inclusion of foreign-invested insurers represents a substantial shift away from current practice.

CIRC's assertive action underlines renewed emphasis on controlling financial risks
  • China
  • 20 March 2018

Since the end of 2017, the China Insurance Regulatory Committee has taken numerous regulatory measures to address disorder in the insurance market, some of which have brought certain domestic life insurers to task. The measures are notable, as they underline a renewed emphasis on controlling financial risks, which is of utmost concern for the government.

Increased insurance investment limits further liberalise insurance industry
  • China
  • 16 January 2018

Following the resumption of bilateral trade treaty talks between China and the United States, a 100-day plan was mooted which promised to improve trade ties going forward. One area of focus in this regard has been the foreign ownership limits that apply to inbound investment in Chinese financial services groups, including those pertaining to the country's insurance industry. This policy shift has given rise to expectations that further foreign investment in the insurance industry will increase significantly.


Finland

New insurance claim based on same traffic accident not time barred
  • Finland
  • 04 July 2017

In 2006 a claim was filed pertaining to a traffic accident in which the claimant had fallen off a moped and suffered a severe brain injury. The insurer rejected the claim in 2007. In 2011 the claimant discovered that the brain injury had caused permanent incapacity and a new insurance claim was filed, which the insurer rejected. The Supreme Court recently had to consider whether the exacerbation of damage starts a new period for a claim if it has already become time barred.

New Motor Liability Insurance Act enters into force
  • Finland
  • 28 February 2017

The new Motor Liability Insurance Act recently entered into force. The previous act dated from 1959 and required complete reform and modernisation to respond to existing and future needs. The new act is structured to follow the typical chronology of the underwriting and claims handling process and aims to promote competition by giving the insurance industry the opportunity to develop new products. This appears to be succeeding, as insurers have already launched new products.

Validity of legal expenses insurance
  • Finland
  • 20 December 2016

The validity of legal expenses insurance can be problematic when ending business activities. A pharmacist terminated his legal expenses insurance after he retired and ended his business activities. Some time later he received a workers' compensation claim from a former employee. The pharmacist believed that the insurance would cover the matter, but the insurer rejected the claim because the event had occurred after the validity of the insurance.