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Insurance
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and standards in the UK, not just Gibraltar rules. This is something I have been considering since first arriving in Gibraltar in 2017 working as a director and lawyer for a newly authorised general insurer. There was the appreciation of the need to understand the local regulatory considerations as the insurance company was authorised and subject to local
Gibraltar laws. However, any oversight of the sale of insurance, distribution, claims and complaints would need to consider UK insurance laws and regulations and Financial Conduct Authority (FCA) rules as well as Gibraltar regulatory considerations as the insurance policies were being sold and administered in the UK.
By way of example, I constantly called upon my UK regulatory knowledge when overseeing claims, complaints and conduct activities carried out by appointed companies in the UK which, were authorised by FCA and subject to its rules. Continual reliance on this UK insurance
regulatory knowledge is called upon when working for an insurance manager in Gibraltar providing, amongst other services, compliance services to clients:
1) As part of the post Brexit regulatory alignment of the insurance sector, one of the big four accounting firms were appointed to carry out a review of the Gibraltar regulatory regime against
UK regulatory environment. Regulatory alignment is now being moved forward in the form of GAR.
2) Conduct has been going higher up the regulatory agenda both in the UK and Gibraltar - when the oversight is of regulatory activities in the UK subject to UK laws, regulations and FCA rules.
3) As most readers are no doubt aware, the General Insurance Pricing Practices Final Report (GIPP) was published in September 2020 setting out findings on how home and motor insurance are working, stating the importance of the need for general
insurance to work well and deliver good outcomes for all consumers, including the potential remedy for ‘price walking’. This would require firms to offer a renewal price that is no higher than the equivalent new business price for that customer through the same sales channel. Other articles you may have read, will address this in more detail.
UK motor insurance underwritten in Gibraltar The FCA propose to apply the rules on which they are consulting to Gibraltar authorised insurers and clearly this is important and relevant for lots of Gibraltar insurers due to the substantial amount of UK motor insurance underwritten in Gibraltar. The logic for this approach makes sense as firms based in Gibraltar can sell insurance into the UK and it is considered important to ensure that all firms serving customers in the UK are subject to the same rules to ensure effective competition for consumers and appropriate levels of consumer protection. Whatever your viewpoint is on this approach, this is the most recent example of the need for regulatory advisory professionals in Gibraltar to be aware of and understand FCA rules.
UK regulatory rules
For Gibraltar insurers selling and distributing insurance policies in the UK - I was always adamant that a knowledge and appreciation of the UK regulatory rules applicable to the sale, distribution and administration was required for anyone working in any governance, compliance or in a regulatory capacity in Gibraltar and the tide of regulatory change and alignment will, in my view, increasingly require this.
‘In Gibraltar, insurers authorised by the Gibraltar Financial Services Commission (FSC) can continue to passport into the UK
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24 Gibraltar International
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