Exposure Pathway meaning

ISPVs enable insurers to reduce their exposure to significant events, including natural catastrophes, by passing risk to private investors via catastrophe bonds, or 'cat bonds'. Shoib Khan, the central bank’s Prudential Regulation Authority (PRA) director for insurance supervision, said the PRA will outline later this year how it plans to shorten approval times for submitted cat bond applications to ten working days, down from the current four to six weeks. Speaking at the Bank of America Securities Annual Financials CEO Conference, Khan added that the PRA intends to consult later this year on creating a new, accelerated pathway for catastrophe bond applications...

Fixed recoverable costs (FRC) Fixed recoverable costs (FRC) set out the sums recoverable from the paying party in litigation, introduced to promote clarity and proportionality in legal spend and process. The intention is that would-be litigants are not deterred by the risk of adverse costs exposure. FRC are now routine across several litigation spheres, though they are not universally applicable in every claim. As the landscape continues to change, this tracker seeks to chart the major milestones in the reform of FRC and offer granular guidance on particular stages and phases. CPR provisions on fixed costs For an overview of the present fixed costs rules and a pathway to related materials and analysis, see: Fixed costs (position on or after 1 October 2023)—checklist. Timeline of key events in fixed recoverable costs reform October 2025 (consultation closes on 5 January 2026) — The Civil Procedure Rule Committee (CPRC) has opened a consultation assessing the effectiveness of the FRC expansion, inviting feedback and evidence as...

This Practice Note sets out the UK regime for insurance-linked securities (ILS). It outlines what ILS are and identifies the requirements under: the Prudential Regulatory Authority (PRA) Rulebook for Insurance Special Purpose Vehicles (ISPVs); Section 284 of the Financial Services and Markets Act 2000 (FSMA 2000); the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO); the Risk Transformation Regulations 2017, SI 2017/1212 (RTRs); and the Risk Transformation (Tax) Regulations 2017, SI 2017/1271 (RTRs Tax). What are insurance-linked securities? ILS are a risk management tool for insurance and reinsurance firms. Insurers typically address their exposure by entering into arrangements where: the insurer keeps its direct liability to its policy holders; and another firm receives sums corresponding to part of the premium paid by policy holders to the insurer; and is obliged to pay amounts to the insurer that match an agreed share of losses suffered by...

Condition to Liability Cover for Climate-Related Claims This clause sets a precondition for insurance cover, compelling the insured to establish a rigorous net-zero transition plan before cover incepts for climate-related liability claims. A commercial policyholder must have such a robust plan (including emissions reduction targets) in place at policy inception, as a prerequisite to accessing liability insurance for climate-related claims. The objective is to encourage good behaviour, place the insured on a pathway towards net zero, and lower the likelihood of climate-related claims being brought against the insured, thereby supporting the insurer’s sustainable business. In short, it promotes better conduct, aligns strategy with net-zero goals and mitigates exposure to climate-related liabilities. The clause was created by The Chancery Lane Project (TCLP) under the title ‘Condition to Liability Cover for Climate-Related Claims’ and is referenced on TCLP’s website below. For detailed guidance on liability cover for climate-related claims, please consult the clause issued by TCLP. TCLP is the code name for the focused and collaborative effort of lawyers from around...