What all banks and financial institutions dread in the ‘always on’ world of digital is the dreaded “we’re sorry, we’re having problems right now” being displayed to all customers. It is something the regulators are concerned about too.
As the UK prepares to gradually reopen the economy over the coming weeks, all eyes now turn to how the (re)insurance industry will adapt to the ‘new normal ‘. While companies remain divided over whether the recent trend of homeworking will continue (HSBC boss Noel Quinn scraps executive floor at London HQ), two points remain clear:
Following regulatory forbearance due to Covid and the resultant extensions to the implementation dates, it is time to review arrangements to comply with UMR. The number of in-scope entities will drastically increase as we near the Phase 5 & 6 dates. Entities will be subject to the rules from 1st September 2021 if the aggregate month-end average notional amount is above EUR 50 billion and from the 1st September 2022 if above EUR 8 billion. This will bring into scope over a thousand firms and result in a requirement to re-paper clients accordingly. These amounts equally apply to the UK as the recent consultation by the PRA & FCA outline some proposed changes but do not convert the pre-Brexit notional amounts to GBP.
Following on from our previous blog ‘Exploring Captive Solutions in a Hardening Market’ we decided to highlight the top three considerations to drive efficiency by controlling costs.
Recently formed captives often use third-party service providers to run their day-to-day business operations, including core activities such as claims handling.