NEAM Insights

Asset-Centric Optimization An asset-centric optimization focuses solely on the investment portfolio, aiming to maximize the investment return based on the risk tolerance towards the assets, without directly considering liabilities. Read More

Solvency UK The Solvency II regulatory regime came into force across the European Union ("EU") on 1 January 2016. Following the UK’s exiting from the EU, the UK Government announced a review of the Solvency II framework and launched consultations in April 2022. It followed up with final proposals on 17 November 2022 and revealed draft legislation on 20 June 2023. The Prudential Regulation Authority (“PRA”) followed up with a consultation on technical details on 29 June 2023. Read More

Introduction On 25 October 2021, Lloyd’s published the Revised Membership & Underwriting Conditions and Requirements (“the new M&URs”; Lloyd’s Market Bulletin Y5353), culminating an 11-month process since the initial consultation document was introduced. In response, capital providers (“members”) have started to make adjustments and we are seeing some early signs of where the market is moving under the new regulation. Read More

Introduction Lloyd’s has recently initiated Project Rio (also known as “The Principles for Doing Business”), which will replace the Minimum Standards framework starting January 2023, moving from the former rules based regime to a principles based approach. Having submitted their first self assessments, Managing Agents are currently reviewing the results with Lloyd’s to determine whether any actions are required for the second half of 2022. Read More

Executive Summary The Property & Casualty (P&C) insurance industry is arguably in the most uncertain position in recent memory. Seldom has the industry been faced with such fundamental challenges – ranging from a remote workforce and legislative and legal actions to weakened near-term demand. Read More

Introduction In May 2020, the Prudential Regulation Authority (“PRA”) released its supervisory statement SS 1/20 Solvency II: Prudent Person Principle (“SS 1/20”), which applies to all UK Solvency II firms, including Lloyd’s and its managing agents. The Prudent Person Principle (“PPP”) is fundamental to firms’ investment governance and operations, thus demanding the close attention of both the board and senior management. Read More