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The AI Revolution in Insurance The insurance landscape is undergoing a seismic shift, thanks to the power of Artificial Intelligence (AI). From predictive analytics to the rapid development of new products, AI is reshaping the industry’s very foundation. With tools like ChatGPT and other generative AI models, tasks that once seemed laborious are now streamlined, enabling insurers to process vast amounts of data with unparalleled efficiency. The Double-Edged Sword

2023 Digital Strategy Overview The European Insurance and Occupational Pensions Authority’s (EIOPA) digital strategy 2023, aims to support consumers, markets, and the supervisory community through digital transformation. Realising that digital transformation is reshaping the world, influencing how businesses operate, how people connect, and how information is exchanged, EIOPA recognises that the insurance and pension sectors are no exception, with digitization altering product development, underwriting processes, and consumer behavior. The Digital

In an era where global risks are escalating and the insurance industry is pivoting towards a more customer-centric and digitally adept future, the “2024 Global Insurance Outlook” by Deloitte Center for Financial Services provides a comprehensive exploration into the multifaceted dynamics of the industry. The research, accessible here, underscores the pivotal role of insurers in not only acting as society’s “financial safety nets” but also evolving into sustainability ambassadors,

Aegon N.V., a notable entity in the financial and insurance sector, has embarked on a pivotal journey, aiming to shift its legal domicile from the Netherlands to Bermuda, as elucidated in their Shareholder Circular dated September 29, 2023. This strategic move, which is set to be voted upon at the Extraordinary General Meeting of Shareholders, is not merely a geographical shift but is embedded with intricate financial, regulatory, and

The Organization for Economic Cooperation and Development (OECD) in December 2022 released its latest inflation figures. According to the OECD, year-on-year inflation in the OECD as measured by the Consumer Price Index (CPI) rose to 10.7% in October 2022, from 10.5% in September. Similarly to the previous month, double-digit inflation was recorded in 18 out of 38 OECD countries, with the highest rates observed in Estonia, Hungary, Latvia, Lithuania and

The French government had promised to review the tax framework for captives to encourage their creation in France. However, in November 2021, it appeared that the measure would not be part of the 2022 Finance Bill. The creation of a specific mechanism allowing captives to smooth their reserves over time, i.e. equalization reserves, is understood to be considered by the European Union as a “state aid mechanism”, and therefore

The tax division of global consultancy Deloitte in May 2020 published an analysis of permanent establishment and corporate residency issues in the context of the COVID-19 crisis. In a nutshell, employees stranded in a foreign country and performing remote work from there could unwittingly create a “permanent establishment” and/or a de-facto “corporate presence” in that country, which in turn would trigger tax consequences, potentially making their employer liable for

The French Prudential Supervision and Resolution Authority (ACPR) in January 2020 approved a reinsurance captive in France for payment solutions provider Worldline. The approval marks the first in almost 20 years, and only the fourth reinsurance captive in France. Worldline chose France as a jurisdiction based on the advice of Willis Towers Watson (WTW), which supported Worldline throughout all aspects of the process, from the initial opportunity study to

The International Accounting Standards Board (IASB) in December 2019 adopted changes to the IFRS 17 exposure draft supported by the insurance industry, and has decided to delay discussions about extending the new standards’ effective date beyond the current 2022 deadline. IFRS 17, issued in May 2017, is the first truly international accounting standard for insurance contracts. It addresses the many inadequacies of local rules in accounting for such contracts.

  Standard Setting Bodies and Professional Federations The European Commission: ec.europa.eu/internal_market/insurance/solvency/index_en.htm European Insurance and Occupational Pensions Authority (EIOPA): eueiopa.europa.eu National Association of Insurance Commissioners, USA (NAIC): content.naic.org/ International Association of Insurance Supervisors (IAIS): www.iaisweb.org The European Federation of (Re)Insurers: www.insuranceeurope.eu The European Federation of Risk Management Associations: www.ferma.eu The Association of Reinsurance Professionals in France: www.apref.org Regulators and Control Authorities Belgium: www.nbb.be France: acpr.banque-france.fr/lacpr.html Guernsey: www.gfsc.gg/ Ireland: www.centralbank.ie Italy:

Burlington, Vermont, USA-based Distributed Ledger Governance Association (DLGA) in July 2019 launched a blockchain working group dedicated to captive reinsurance companies. The U.S. state of Vermont is a major domicile for captive insurers and reinsurers. DLGA’s mission statement is “to enable [its] members to successfully demonstrate and accelerate commercialization of their distributed ledger technology (DLT). [DLGA believes] this can best be accomplished through effectively engaging with government and stakeholders

The European Insurance and Occupational Pensions Authority (EIOPA) has issued recommendations for the insurance sector in case the United Kingdom (UK) withdraws from the European Union without a withdrawal agreement.

A London judge in February 2019 ruled that a European Union agency, the European Medicines Agency (EMA), could not use Brexit to break its lease. The EMA is moving its 900-people headquarters to Amsterdam, The Netherlands as a direct result of Brexit. It has a 25-year lease for 10 floors in a building in London’s Eastern financial district, Canary Wharf, with 21 years to run. The European agency pays

France in February 2019 published transitional (or emergency) measures related to insurance in case of a no-deal Brexit. As per the new rules, contracts may not be amended if additional premiums are collected renewals, including automatic renewals are not allowed payment of claims will not be considered a breach for at least the first 12 months The new rules apply to contracts covering French risks and entered into before

Global Benefits Vision: Now that Brexit seems to be upon us, let’s talk about how you see it impacting Lockton and the insurance world in general. Ian Cooper: It has been quite fascinating. Insurance providers, as we know, within the single market, can passport regulatory permissions and trade across Europe.

Replicating an earlier deal in 2017 between the European Union (E.U.) and the United States (U.S.), the latter in January 2019 signed a “covered agreement” with the United Kingdom (UK) that protects their respective international insurers and reinsurers when doing business with each other. The new covered agreement basically provides for a limited but very useful form of mutual recognition of reinsurance companies and of (re)insurance regulators. The existing

OECD, the Organization for Economic Cooperation and Development, in November 2018 issued a new report, The Institutional Structure of Insurance Regulation and Supervision, which presents the results of a stocktaking of the institutional structure of insurance regulation and supervision practices in 50 OECD and non-OECD countries. The report is based on responses to a questionnaire circulated to OECD and non-OECD countries, with cooperation from the International Association of Insurance

Industry body Insurance Europe in October 2018 called for a two-year delay before IFRS 17 comes into force in order to solve remaining issues. IFRS 17 (International Financial Reporting Standard 17) is a forthcoming European accounting standard that substantially changes the way in which premiums, claims, and other components of an insurer’s or reinsurer’s profit and loss statement are reported. It is intended to come into force for annual

The European Commission in August 2018 announced the names of the ten members of its recently established “High Level Group on [supplementary] pensions”. The mission of the group is “to provide policy advice to the Commission on matters related to ways of improving the provision, safety through prudential rules, inter-generational balance, adequacy and sustainability of supplementary (occupational and personal) pensions in light of the challenges in the Union and

E.U. regulator EIOPA (the European Insurance and Occupational Pensions Authority) in July 2018 announced the new composition of the Insurance and Reinsurance Stakeholder Group (IRSG) and the Occupational Pensions Stakeholder Group (OPSG). The two stakeholder groups are renewed every 30 months. The new rosters show a more balanced approach in regard to gender and national diversity as well to a diversity for different types of stakeholders. In total, 16