Risk Matters - Autumn 2013

Welcome to the Autumn 2013 edition of Risk Matters; your guide to the latest themes and issues affecting domestic and international insurance markets.

In any dynamic industry, pinpointing trends of enduring significance can be like reading station signs from a high speed train. Nevertheless, our authors have craned their necks with sufficient suppleness to earmark several essential topics.

Our guest feature follows matters of domestic regulation, with Christopher Galyer, Head of Legal at broker Jardine Lloyd Thompson Group Plc. Christopher provides a unique perspective on the Financial Conduct Authority’s thematic review into insurance brokers’ conflicts of interest.
Meanwhile, Tim Ingham’s detailed look at the practical challenges for insurers around pan-European product development delivers the latest guidance on how to bring standardisation into your continental portfolio.

Consultant Nick Foster-Taylor switches attention to the captive markets around the globe for whom the spectre of a probe by some tax authorities into internal pricing of reinsurance looms large.
Also scaling the controversial issues of today are Partner Caroline Hobson and Senior Associate John Markham. Both have been heavily involved with matters in relation to sanctions recently and with pressure on corporates and their insurers from the long arm of US legislation, John and Caroline explain that companies would be wrong to discount the European Union’s rules as having no bite. With these rules restricting the ability for insurers to do business in certain jurisdictions, this article provides a few helpful tips on how to spot sanctions issues before they arise.

Returning to UK-specific issues, since the implementation of Lord Justice Jackson’s civil justice reforms litigation funding has been at the top of the agenda. Here, we reveal the outcome of the recent CMS CMCK case of Harcus Sinclair v Buttonwood Legal Capital, and consider its implications for funded parties and those who may have harboured suspicions that litigation funding would prompt an increase in speculative claims.

We also have a range of articles focusing on corporate matters covering pension concerns and whether conditions are right for an IPO . First, CMS Partner Helen Johnson explains the choices available to insurance companies and brokers looking to take their business public; next, Associate Alaina Wadsworth looks into the increasingly controversial topic of pensions transfer exercises.
Few can have failed to notice further delay in confirmation of Solvency II’s implementation. Needless to say the news failed to surprise, however CMS CMCK Partner Mike Munro extracts some important elements on which to focus; notably potentially good news on the approach to long term guarantee products.

And finally, with merger and acquisition activity gathering pace across the insurance sector, employment specialist Sarah Ozanne looks at the recent government consultation on transferring employees under “TUPE” regulations.