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Regulation

Insurers face possible British action over calculation of pandemic payouts

Some insurers were making deductions for government loans – which businesses had received as a result of the pandemic – when calculating payouts.

The FCA said this could be appropriate but insurers should not take a one-size-fits-all approach and make uniform deductions.
The Financial Conduct Authority (FCA) has taken eight insurers to court over business interruption policy wordings, which the insurers say do not cover the pandemic, with a ruling expected in mid-September.

But the case does not address how any resulting claims payments would be calculated, the FCA said on Monday.

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India’s IFSCA gets members from 4 regulators,to regulate financial markets in IFSCs

The centre has notified the names of T.L.Alamelu,member, IRDAI, Indrani Banerjee,executive director,Reserve Bank of India(RBI), Sujit Prasad,executive director,Securities and Exchange Board of India(Sebi),Ananta Gopal Das,executive director,Pension Fund Regulatory and Development Authority(PFRDA), as members of IFSCA)

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Hong Kong moves to create regional hub for insurance-linked securities

The Hong Kong government introduced in March the Insurance (Amendment) Bill 2020[here]. The bill provides a regulatory framework for insurers to transfer risk to the capital markets by issuing insurance-linked securities in Hong Kong through special purpose insurers, or SPIs. Special purpose insurers are essentially the same as the dedicated special purpose vehicles that are authorized in other jurisdictions to issue insurance-linked securities, or ILSs.

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More S.African insurers yield to customer demands to pay COVID BI claims

The FSCA and the Prudential Authority, which oversees the strength of the financial-services industry, last week struck a deal with insurers to consider once-off payments to help keep customers afloat, while courts decide whether insurers are correctly interpreting the terms of contracts.

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After US directive,DGCA tells airlines to inspect Boeing B737s in fleet

The US aviation regulator Federal Aviation Administration asked the airlines to inspect their B737 aircraft that had not flown for seven days or more and the ones that had operated not more than 10 flights after return to service.
A senior DGCA official said the Indian regulator had asked Indian carriers SpiceJet, Vistara and Air India Express to inspect their B737 aircraft as directed by the FAA.

The emergency directive was “prompted by four single-engine shutdowns” that happened due to compromised air check valves in the engines of the certain B737 aircraft, said the FAA in its emergency directive.

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