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<br /> 2015 YEAR END REVIEW<br /> AND FORECAST FOR 2016<br /> 2015 YEAR END REVIEW<br /> AND FORECAST FOR 2016<br /> 2015 was a challenging and transformative year for the insurance industry.<br /> We saw:<br /> • More than $200bn in mergers including mega mergers such as Anthem’s<br /> $55.2 billion acquisition of Cigna, Aetna’s $37bn acquisition of Humana<br /> and Ace’s $29.7bn acquisition of Chubb.<br /> • Announced plans by some major carriers to dramatically restructure<br /> and rescale their businesses, in part due to regulatory changes, activist<br /> investors and harsh commercial realities.<br /> • Further evolution of the regulatory ecosystem. This included the<br /> implementation of Solvency II, the adoption of BCR and HLA by<br /> the IAIS, changes and challenges to SIFI and G-SII designations, and<br /> expanding interest in recovery and resolution plans.<br /> • Opportunities and challenges presented by big data and technology.<br /> • E<a title="Insurance_Sector_Year_End_Review_2015 page 1" href="http://viewer.zmags.com/publication/6e08f92d?page=1"> 2015 YEAR END REVIEW AND FORECAST FOR 2016</a> <a title="Insurance_Sector_Year_End_Review_2015 page 2" href="http://viewer.zmags.com/publication/6e08f92d?page=2"> 2015 YEAR END REVIEW AND FORECAST FOR 2016 2</a> <a title="Insurance_Sector_Year_End_Review_2015 page 3" href="http://viewer.zmags.com/publication/6e08f92d?page=3"> TABLE OF CONTENTS Evolution of International In</a> <a title="Insurance_Sector_Year_End_Review_2015 page 4" href="http://viewer.zmags.com/publication/6e08f92d?page=4"> EVOLUTION OF INTERNATIONAL INSURANCE REGULATION 2</a> <a title="Insurance_Sector_Year_End_Review_2015 page 5" href="http://viewer.zmags.com/publication/6e08f92d?page=5"> T he International Associati</a> <a title="Insurance_Sector_Year_End_Review_2015 page 6" href="http://viewer.zmags.com/publication/6e08f92d?page=6"> HLA required capital formula factors BCR required</a> <a title="Insurance_Sector_Year_End_Review_2015 page 7" href="http://viewer.zmags.com/publication/6e08f92d?page=7"> On February 10, 2016, the NAIC’s Financial Condit</a> <a title="Insurance_Sector_Year_End_Review_2015 page 8" href="http://viewer.zmags.com/publication/6e08f92d?page=8"> rule, not an aspiration; that the distinction bet</a> <a title="Insurance_Sector_Year_End_Review_2015 page 9" href="http://viewer.zmags.com/publication/6e08f92d?page=9"> FEDERAL LEGISLATIVE AND REGULATORY DEVELOPMENTS </a> <a title="Insurance_Sector_Year_End_Review_2015 page 10" href="http://viewer.zmags.com/publication/6e08f92d?page=10"> T he federal government co</a> <a title="Insurance_Sector_Year_End_Review_2015 page 11" href="http://viewer.zmags.com/publication/6e08f92d?page=11"> 401 includes a Sense of the Congress provision th</a> <a title="Insurance_Sector_Year_End_Review_2015 page 12" href="http://viewer.zmags.com/publication/6e08f92d?page=12"> vacancies, including two state insurance commissi</a> <a title="Insurance_Sector_Year_End_Review_2015 page 13" href="http://viewer.zmags.com/publication/6e08f92d?page=13"> sanctions” will continue to apply to US insurers,</a> <a title="Insurance_Sector_Year_End_Review_2015 page 14" href="http://viewer.zmags.com/publication/6e08f92d?page=14"> NAIC AND STATE REGULATORY DEVELOPMENTS </a> <a title="Insurance_Sector_Year_End_Review_2015 page 15" href="http://viewer.zmags.com/publication/6e08f92d?page=15"> A lthough there were not m</a> <a title="Insurance_Sector_Year_End_Review_2015 page 16" href="http://viewer.zmags.com/publication/6e08f92d?page=16"> Additionally, former US Senator and CEO of the NA</a> <a title="Insurance_Sector_Year_End_Review_2015 page 17" href="http://viewer.zmags.com/publication/6e08f92d?page=17"> The Capital Adequacy Working group also adopted i</a> <a title="Insurance_Sector_Year_End_Review_2015 page 18" href="http://viewer.zmags.com/publication/6e08f92d?page=18"> to specify by regulation requirements for reserve</a> <a title="Insurance_Sector_Year_End_Review_2015 page 19" href="http://viewer.zmags.com/publication/6e08f92d?page=19"> NAIC LIST OF QUALIFIED JURISDICTIONS </a> <a title="Insurance_Sector_Year_End_Review_2015 page 20" href="http://viewer.zmags.com/publication/6e08f92d?page=20"> January 1, 2016. As of January 13, 2016, the 2010</a> <a title="Insurance_Sector_Year_End_Review_2015 page 21" href="http://viewer.zmags.com/publication/6e08f92d?page=21"> Model Audit Rule. In 2014, the NAIC adopted revis</a> <a title="Insurance_Sector_Year_End_Review_2015 page 22" href="http://viewer.zmags.com/publication/6e08f92d?page=22"> the issuance of the UK Financial Conduct Authorit</a> <a title="Insurance_Sector_Year_End_Review_2015 page 23" href="http://viewer.zmags.com/publication/6e08f92d?page=23"> cyber security breaches in the three years preced</a> <a title="Insurance_Sector_Year_End_Review_2015 page 24" href="http://viewer.zmags.com/publication/6e08f92d?page=24"> EUROPEAN REGULATORY AND LEGISLATIVE DEVELOPMENTS </a> <a title="Insurance_Sector_Year_End_Review_2015 page 25" href="http://viewer.zmags.com/publication/6e08f92d?page=25"> E uropean Union Developments </a> <a title="Insurance_Sector_Year_End_Review_2015 page 26" href="http://viewer.zmags.com/publication/6e08f92d?page=26"> In the absence of an equivalence decision, EU sup</a> <a title="Insurance_Sector_Year_End_Review_2015 page 27" href="http://viewer.zmags.com/publication/6e08f92d?page=27"> THE COMPANY YOU KEEP | 27 A NEW ERA: J</a> <a title="Insurance_Sector_Year_End_Review_2015 page 28" href="http://viewer.zmags.com/publication/6e08f92d?page=28"> line with the banking sector approved person’s re</a> <a title="Insurance_Sector_Year_End_Review_2015 page 29" href="http://viewer.zmags.com/publication/6e08f92d?page=29"> Insurance firms will spend 2016 coming to grips w</a> <a title="Insurance_Sector_Year_End_Review_2015 page 30" href="http://viewer.zmags.com/publication/6e08f92d?page=30"> Requirement and overall solvency needs for firms </a> <a title="Insurance_Sector_Year_End_Review_2015 page 31" href="http://viewer.zmags.com/publication/6e08f92d?page=31"> clauses which will be outlawed completely) insure</a> <a title="Insurance_Sector_Year_End_Review_2015 page 32" href="http://viewer.zmags.com/publication/6e08f92d?page=32"> vendors to provide products and services to custo</a> <a title="Insurance_Sector_Year_End_Review_2015 page 33" href="http://viewer.zmags.com/publication/6e08f92d?page=33"> Guaranteed Asset Protection Insurance: Competitio</a> <a title="Insurance_Sector_Year_End_Review_2015 page 34" href="http://viewer.zmags.com/publication/6e08f92d?page=34"> ASIAN REGULATORY DEVELOPMENTS 2015 YEA</a> <a title="Insurance_Sector_Year_End_Review_2015 page 35" href="http://viewer.zmags.com/publication/6e08f92d?page=35"> C Followed by the revision in April 2015 in respo</a> <a title="Insurance_Sector_Year_End_Review_2015 page 36" href="http://viewer.zmags.com/publication/6e08f92d?page=36"> which was acting as a passive investor was unable</a> <a title="Insurance_Sector_Year_End_Review_2015 page 37" href="http://viewer.zmags.com/publication/6e08f92d?page=37"> ASEAN Economic Community – Are We Ready? The muc</a> <a title="Insurance_Sector_Year_End_Review_2015 page 38" href="http://viewer.zmags.com/publication/6e08f92d?page=38"> The Future. Advances towards the implementation o</a> <a title="Insurance_Sector_Year_End_Review_2015 page 39" href="http://viewer.zmags.com/publication/6e08f92d?page=39"> insurance agency license, individual insurance ag</a> <a title="Insurance_Sector_Year_End_Review_2015 page 40" href="http://viewer.zmags.com/publication/6e08f92d?page=40"> AUSTRALIAN REGULATORY DEVELOPMENTS 2015 YEAR END</a> <a title="Insurance_Sector_Year_End_Review_2015 page 41" href="http://viewer.zmags.com/publication/6e08f92d?page=41"> A ustralia – Insurance Reg</a> <a title="Insurance_Sector_Year_End_Review_2015 page 42" href="http://viewer.zmags.com/publication/6e08f92d?page=42"> New Zealand – Insurance Regulation Updates and Pe</a> <a title="Insurance_Sector_Year_End_Review_2015 page 43" href="http://viewer.zmags.com/publication/6e08f92d?page=43"> COMMERCIAL AND TRANSACTIONAL ISSUES AND TRENDS </a> <a title="Insurance_Sector_Year_End_Review_2015 page 44" href="http://viewer.zmags.com/publication/6e08f92d?page=44"> G lobal Trends in Insuran</a> <a title="Insurance_Sector_Year_End_Review_2015 page 45" href="http://viewer.zmags.com/publication/6e08f92d?page=45"> The growing insurance markets outside of ‘traditi</a> <a title="Insurance_Sector_Year_End_Review_2015 page 46" href="http://viewer.zmags.com/publication/6e08f92d?page=46"> With continued economic uncertainty, ILS could be</a> <a title="Insurance_Sector_Year_End_Review_2015 page 47" href="http://viewer.zmags.com/publication/6e08f92d?page=47"> Tax Updates Proposed PFIC Regulations Still Perm</a> <a title="Insurance_Sector_Year_End_Review_2015 page 48" href="http://viewer.zmags.com/publication/6e08f92d?page=48"> Generally, residual value insurance contracts pro</a> <a title="Insurance_Sector_Year_End_Review_2015 page 49" href="http://viewer.zmags.com/publication/6e08f92d?page=49"> Structured insurance products and financial instr</a> <a title="Insurance_Sector_Year_End_Review_2015 page 50" href="http://viewer.zmags.com/publication/6e08f92d?page=50"> with the Validus decision, the IRS has revoked it</a> <a title="Insurance_Sector_Year_End_Review_2015 page 51" href="http://viewer.zmags.com/publication/6e08f92d?page=51"> has the potential to create more aggressive price</a> <a title="Insurance_Sector_Year_End_Review_2015 page 52" href="http://viewer.zmags.com/publication/6e08f92d?page=52"> CONCLUSION AND FORECAST The pace and scale of </a> <a title="Insurance_Sector_Year_End_Review_2015 page 53" href="http://viewer.zmags.com/publication/6e08f92d?page=53"> OUR GLOBAL PRESENCE DLA PIPER RELATIONSHIP F</a> <a title="Insurance_Sector_Year_End_Review_2015 page 54" href="http://viewer.zmags.com/publication/6e08f92d?page=54"> About us DLA Piper is a global law firm located </a>