EU insurance regulation


A new year brings new rules; from July 2017, Lloyd’s will have the authority to monitor and regulate the data requirements as outlined in version 5 of the Coverholder Reporting Standards. A core set of regulatory, tax, premiums and claims information, the standards are intended to make it easier to work with the Lloyd’s market by creating consistent requests and collection of data from coverholders and TPAs.

In terms of impact on insurers, the mandate should cause minimal changes in procedure, as many of the requirements are already mandatory and Lloyds have not specified a format for data reporting and collection. Where additional data collection is required as standard, such as for underwriting, insurers should continue to request and collate further information.

Preparations should be made ahead of the July 2017 deadline, and for organisations who are struggling to meet regulations, tools such as VIPR’s Active Reports and Intrali offer insurers a solution to collecting, cleansing and standardising data in compliance with the Coverholder Reporting Standards.

With the parameters of the mandate yet to be fully finalised, insurers should expect further guidance from Lloyds in January 2017. 

With the third and final pillar of Solvency II coming into effect this month, PwC’s latest review of market conditions has announced that the proportion of binder business is expected to increase from 40% in 2016 to 47% in 2017.


However, as it currently stands, many insurers still execute their underwriting processes manually, rendering them woefully inefficient, inconsistent and full of errors. This is hardly conducive to profitability as time, manpower and budgets are misused on often unsuccessful efforts to clean and organised data into a format which complies with the strict new regulations.

Solvency II has re-set the bar when it comes to the data quality that binders are required to submit, with Lloyds announcing that organisations which fail to provide accurate data will be fined. With the inevitable pressure to modernise systems and to make them more transparent, the market is in desperate need of a more straightforward process.


“As the New Year begins, companies are recognising the challenges of meeting Solvency II’s tough regulations.” Says Richard Brown, Director of VIPR. “As a result, we’ve seen an increasing uptake of our Active Underwriter product as insurers seek to comply with the new guidelines.”

Quote & Bind solutions such as VIPR’s Active Underwriter offer insurers a fast underwriting method, with business instantaneously quoted online within pre-agreed parameters set by the capacity provider. This boosts efficiency while removing many of the risks associated with delegated business due to strict controls applied by these systems and subsequently, business can be rapidly rolled out to new agents. Fully integrated, it accommodates the end-to-end transaction of insurance business, in real-time, across Lloyd’s and international insurance markets and because everything is controlled within the system, it ensures compliance and automatically produces the reports required for Solvency II reporting.

The market is changing and Quote & Bind solutions will ensure the insurance industry is ahead of the curve, and, most importantly, able to write more business to boost profitability.

by Richard Brown

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