The International Underwriting Association (IUA) has issued its 2019 business plan, with the fall-out from the UK’s divorce with the European Union “far from the only topic occupying attention.”
Among the several regulatory issues set to dominate the IUA’s agenda this year is the Financial Conduct Authority (FCA) study examining competition in the wholesale insurance broker sector. Results of the two-year assessment by the FCA will be released in the next few months.
“This exercise is aiming to ensure that the market fosters innovation and competition, and the IUA will be ready to discuss any findings or recommendations with the regulator,” stated the trade body.
“Also in 2019, following the signing of covered agreements between the US and the EU and UK to boost transatlantic (re)insurance trade, the association expects considerable activity to implement necessary regulations at a state level.”
The IUA will also be monitoring subjects such as the IFRS 17 on insurance contracts, changes to international trade sanctions, as well as developments in the US surplus lines market.
“The countdown to Brexit has loomed large over all our industry’s forward planning for some time now,” commented the association’s chief executive, Dave Matcham. “In 2019 we hope to see a functioning transition period, productive discussions on a new trading relationship for UK financial services with the EU and many other free trade agreements around the world.”
Matcham noted that contract continuity, business underwriting practices, and the continuing operation of London Market branches will all necessitate sustained attention and understanding.
“There are, however, many other regulatory developments affecting our market independent of Brexit and the year ahead will be busy,” he said. “The IUA will be maintaining regular and substantive dialogues with supervisors at home and abroad to ensure our members’ interests are well comprehended.”
Meanwhile this year there will also be a particular focus on emerging risks, with the IUA publishing papers on cyber warfare and on new developments affecting multiple lines of business.
