Reinsurance meaning

Purpose of this Checklist This checklist supports Solvency II UK firms in aligning governance, systems and controls with the expectations of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). It should be read alongside Practice Note: Governance, systems and controls requirements for insurers, which provides a more detailed overview of the relevant requirements. Governance and organisational structure Confirm the board holds ultimate accountability for compliance with PRA, FCA and applicable legislative obligations. Establish a robust system of governance, featuring a transparent organisational structure with clearly allocated and segregated responsibilities. Regularly review and update written policies covering risk management, internal control, internal audit and, where relevant, outsourcing. Maintain documented governing body approvals for significant decisions and policy changes. Risk management Implement and embed an effective risk‑management system within decision‑making, ensuring ongoing identification, measurement, monitoring, management and reporting of risks. Incorporate comprehensive strategies, stress testing, scenario analysis and development of the own risk and...

ARCHIVED: This checklist has been archived and is not maintained. Insured party name Name Prospective claimant name Name Policy reference Policy number Policy term Policy period Earlier policies Previous policies Date of notification Date Is the person or entity making the notice on the policy schedule, or in the proposal?...

ARCHIVED: This Practice Note has been archived and is no longer being maintained This tracker summarises the consultation papers issued by the Prudential Regulation Authority (PRA) from 2017 onwards, together with the release of any follow‑on rules and guidance. For material on consultation papers from the Financial Conduct Authority (FCA) and the Financial Services Authority (FSA), see: FCA consultation paper tracker FSA consultation paper tracker Topic area, consultation paper, description, publication date, end of consultation period, and any Policy Statement / Supervisory Statement are recorded. Regulation of insurance 2023 — CP24/23 – Funded reinsurance. This consultation paper outlines proposed expectations for life insurance firms acting as cedants when entering into, or retaining, funded reinsurance arrangements. The PRA’s proposals reflect its assessment that the rising use of funded reinsurance within the UK insurance market presents significant potential risks, including the prospect of unduly concentrated exposures to correlated, credit‑focused counterparties...

FORTHCOMING CHANGES : There are proposed reforms to the leasehold and enfranchisement landscape; for more details, see further Practice Note: Property key future developments tracker. This Flowchart is for use on a tenant’s collective enfranchisement claim under the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993). It outlines the steps from service of a tenant’s section 13 notice of claim, covering a landlord’s section 21 counter-notice and deadlines for applications to the First-tier Tribunal (FTT) (or the Leasehold Valuation Tribunal (LVT) in Wales), and/or the County Court as appropriate. Note 1 See Practice Note: Guide to the right to collective enfranchisement under the Leasehold, Reform Housing and Urban Development Act 1993 (LHRUDA 1993)—Preparation for a collective enfranchisement claim. Note 2 See Practice Note: Guide to the right to collective enfranchisement under the Leasehold, Reform Housing and Urban Development Act 1993 (LHRUDA 1993)—Participating tenants and Guide to the right to collective enfranchisement under the Leasehold, Reform Housing and Urban Development Act 1993 (LHRUDA 1993)—Section 13 notice of claim—the...

On 24 March 2025, the Central Bank of Ireland (Central Bank) released its inaugural Insurance Quarterly Newsletter (newsletter) for 2025. It features several significant pieces for Irish (re)insurers, such as the Central Bank’s yearly Regulatory & Supervisory Outlook Report, discussion of asset‑intensive reinsurance, and updates to the Consumer Protection Code (with the Business Standards). The Regulatory and Supervisory Outlook Report The Central Bank published its Regulatory and Supervisory Outlook Report on 28 February 2025 (report). It set out the Central Bank’s perspective on principal trends and risks across the financial system and came with a Dear CEO letter describing the Central Bank’s updated supervisory approach. The newsletter draws out the report’s central themes, notably the Central Bank’s Supervisory Priorities for 2025. proactive risk control and leadership that puts consumers at the centre within firms ensuring firms remain resilient amid a difficult macroeconomic backdrop remediation of weaknesses in operating frameworks by firms effective change management within firms tackling climate change and progressing...

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...

Lonham Group Ltd v Scotbeef Ltd & another [2025] EWCA Civ 203 Traditionally, English insurance law placed onerous burdens on insured parties: they were required to reveal every material circumstance capable of affecting the judgment of a prudent insurer when setting the premium or determining whether to accept the risk. If they did not, the insurer could treat the policy as though it never existed. Likewise, any failure to comply with a warranty discharged the insurer from liability under the policy, regardless of the warranty’s relevance to the risk and irrespective of whether the breach was later remedied. In the early development of insurance, these severe rules were arguably justified by the informational imbalance between insured and insurer. By the twenty-first century, however, a more sophisticated market generated pressure for reform. For non-consumer insurance, the result was IA 2015, which marked a substantial change in approach. The previous duty of disclosure was replaced by a duty of fair presentation, and only in defined circumstances could an...

The Insurance Act 2015 (IA 2015) obtained Royal Assent on 12 February 2015 and, save for Part 6 of the Act, took effect on 12 August 2016. It marks the widest overhaul of the statutory regime governing English insurance contracts since the Marine Insurance Act 1906 (MIA 1906). For fuller commentary on IA 2015, refer to Practice Note: Insurance Act 2015 (IA 2015)—essentials. Below we address some frequently asked questions (FAQs) concerning IA 2015... What is the IA 2015 and when did it come into force? IA 2015 is the most far-reaching reform of English insurance contract law since MIA 1906. It secured Royal Assent on 12 February 2015 and, except for Part 6, commenced on 12 August 2016. The Act reshaped rules on fair presentation, remedies for non-disclosure and misrepresentation, warranties, fraudulent claims, contracting out, and third-party rights. The Enterprise Act 2016 (EA 2016) subsequently introduced a right to recover damages for the late payment of insurance claims, in force from 4 May 2017... Further reading/relevant...

Practice Note This Practice Note reviews how arbitration agreements are incorporated into contracts governed by English and Welsh law (using England and English as shorthand). Further materials on arbitration agreements appear on the right-hand side of the page, including Practice Note: Arbitration agreements—the in writing requirement. An oral understanding does not, however, strip a party of access to the courts, since either party may cancel the authority of the arbitrator appointed pursuant to such an arrangement. For an arbitration clause to have legal effect, it must be duly incorporated into the contract it concerns. Under section 6(2) of the Arbitration Act 1996 (AA 1996), a reference in a contract to a written arbitration clause, or to another document that contains such a clause, will itself amount to an arbitration agreement where the reference is expressed in terms that make the clause part of the contract. In short, effectiveness depends on clear incorporation by reference...

Insurance & Reinsurance case tracker—2018 [Archived] ARCHIVED: This resource has been archived and is no longer being updated. It collates insurance-related litigation in the High Court, Court of Appeal, Supreme Court and the Court of Justice of the European Union (including both the General Court and the Court of Justice). Drawn from our monitoring and examination of relevant proceedings, and at times reports from our own court correspondents, the tracker brings key cases together swiftly in one place. It records the status of matters covered since January 2018, including upcoming hearings, and ordinarily received updates every fortnight. Abbreviations European Court of Justice/Court of Justice of the European Union — ECJ Court of Justice of the European Union — General Court — CJEU-GC Supreme Court — SC Court of Appeal — CA High Court — HC Privy Council — PC Queen's Bench Division — QBD For previous years, see: Insurance & Reinsurance case tracker—2017...

Insurance Premium Adjustment for D&O Climate-related Financial Disclosures (Archie’s Clause) (The Chancery Lane Project) This clause encourages organisations to lessen climate exposure by offering lower insurance premiums to policyholders who satisfy agreed reporting disclosure standards for climate-related financial risks...

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...

An Agreement dated [ date ] regulating the carrying on and conduct of Insurance Business between: 1 [ Full name of insurance company ][ (insert company acronym) ], incorporated and registered in [ country ] with company number [ number ], whose registered office is at [ registered office address OR (the Insurer) full name of Managing Agent ], on behalf of the underwriting members of all Lloyd’s syndicates it manages from time to time (the Managing Agent), AND 2 [ Full name of broking company ], incorporated and registered in [ country ] with company number [ number ], whose registered address is at [ registered office address ] (the Broker) (collectively, the “Parties”, and each separately a “Party” herein) AGREED TERMS 1 Definitions and interpretation 1.1 The definitions and rules of interpretation apply to this Agreement as follows: ADR Notice: has the meaning set out in clause 25.2. Agreement: refers to this contract, the “Terms of Business Agreement Non Risk Transfer...