The IUA argues that any new ’Consumer Duty’ introduced for UK insurers must be ’appropriate and proportional for the wholesale commercial market’
The International Underwriting Association (IUA) has published its business plan for 2022, setting out clear focuses around climate risk, business interruption, regulatory changes and pandemic responses.
Dave Matcham, IUA’s chief executive, said: “Our most important task is assisting our members to effectively transfer and help mitigate the most pressing risks faced by their clients.
”There is a close correlation, therefore, between the targets in our business plan and the problems that keep risk managers awake at night.
“These issues have each been the subject of regular dialogue between the IUA and government and are the subject of specific actions points throughout our workplan for 2022.
”We will also be representing our members’ views as the UK continues its post-Brexit examination of Solvency II and the future regulatory framework for insurance.”
There are also several initiatives in the IUA’s 2022 plan that support the digital transformation of central processing services in the London market, which will largely be conducted through a new joint venture agreement with DXC Technology and Lloyd’s.
For example, over the next 12 months, the IUA will renegotiate the contract that enables its members to use the market’s central processing services, known as FERN 2.
Meanwhile, the association’s public policy work will include responding to the proposed changes to regulatory reporting requirements, such as the introduction of specific rules for cyber underwriting, operational resilience and climate risk.
The IUA will also be arguing that any new ‘Consumer Duty’ introduced for UK insurers must be appropriate and proportionate for the wholesale commercial market.
The FCA initially launched its proposed Consumer Duty in May 2021 - this “requires firms to act to deliver good outcomes for retail customers”.
The association’s Climate Risk Committee will continue to cooperate with regulators as the insurance industry’s role in this area is further developed.
The IUA additionally intends to publish research on cyber risk, supply chain risk and claims series clauses, as well as continuing its discussions on available coverage with the National Cyber Security Centre.