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