The Chancellor of the Exchequer only mentioned insurance twice, when he delivered his Autumn Statement to Parliament on 23 November 2016:
- “Insurance premium tax … will rise from 10% … to 12% … next June“; and
- ” … the government [will] legislate next year to end the compensation culture surrounding whiplash claims – a major area of insurance fraud …“
However, section 4.12 of the Autumn Statement Policy Paper includes a 3rd: “The government is consulting on a new regulatory and tax framework for Insurance Linked Securities. Alongside this the Prudential Regulation Authority and Financial Conduct Authority … will consult on their approach to the authorisation and supervision of Insurance Special Purpose Vehicles. This will help to maintain London’s position as the most important global hub for reinsurance business. The government will place final regulations before Parliament in the spring”
HM Treasury has published an ILS consultation paper, and 2 draft ILS SIs:
- Regulations implementing a new regulatory and tax framework for Insurance Linked Securities: consultation
The Treasury’s consultation closes on 18 January 2017.
The PRA and FCA have published a joint Consultation Paper: Authorisation and supervision of insurance special purpose vehicles. This consultation closes on 23 February 2017.
More to follow …