Michael Faulkner outlines the issues that matter this month
It has taken many years, but the issue of whether brokers should be forced to disclose their commission to commercial customers has been resolved – well, nearly. The FSA has accepted an industry solution to the problem, lifting the threat of costly and burdensome regulation. Danny Walkinshaw assesses how brokers will have to change their businesses practices (page 2).
Meanwhile, the development of Solvency II, the pan-European solvency regime, continues to be anything but smooth. The latest setback could completely undermine the proposed legislation and, at the very least, is likely to delay its implementation. Ellen Bennett explores the implications for the industry (page 3).
Last year was the second most costly year ever for catastrophe claims ($50bn, or £34bn, according to Swiss Re) and the performance of catastrophe modelling software has come under fire. The software has some significant limitations but, as David Sandham explains, improvements are on the way (page 4).
The consolidating brokers are coming under pressure as insurers look to rein in commission growth. After years of calling the shots, they must adapt their business model (page 5).
Also in this issue, Nathan Skinner argues that risk management has never been more important (page 6).
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