May Regulatory Bulletin

Welcome to our May Regulatory Bulletin - the month when GDPR finally comes into effect. This month we also cover updates on how we are progressing with changes around IDD and Brexit.

The General Data Protection Regulation has arrived! 

The General Data Protection Regulation (GDPR) comes in to force today and replaces the Data Protection Directive 95/46/EC. The GDPR will harmonise data privacy laws across Europe, with the objective of  protecting and empowering EU citizens data privacy, whilst reshaping the way organisations approach data privacy.

Should you have any last minute questions in the relation to the regulatory change see the ICO website (external link), where you can view more information on the GDPR including a data protection self-assessment toolkit (external link) which you may find useful. 

In relation to Hiscox’ readiness for GDPR, please see our summary of FAQs which answers some of the questions we have been receiving over recent weeks.

GDPR: recommended listening

The recording of our most successful broker webinar to-date "GDPR: Supporting your voyage to compliance" is still available for you to listen to again. The webinar provides a whistle stop tour of what you need to know about GDPR.  

Listen again to the webinar here. (external link)

Want more? We also created a follow-up Q&A document from the questions we were asked during the webinar - click here to view the Q&As.  

Finally – we would like to say a big thank you for your cooperation in our GDPR preparation activity, especially in respect of contract updates and changes to how we exchange data. For anyone who is yet to contact us to make arrangements regarding secure transfer of data please ensure you do so as soon as possible. 

Should you have any questions or wish to discuss any of the above please email us at uk&[email protected]

The IDD comes into force in just under five months and it is important you make the necessary changes in order to be compliant ahead of October 2018. Our March Regulatory Bulletin highlights some key areas to be aware of, so please review this page for further information.

You will probably be aware that the IDD implementation date has been delayed from 23rd February 2018 to 1st October 2018. This has been confirmed by HM Treasury at a UK level, but isn’t likely to be officially confirmed by the EU until later in the year.

Please make sure you check your respective financial services regulator’s website for any guidance, updates, or final rules.

The FCA website for the UK: www.fca.org.uk (external link)

The Central Bank of Ireland for Ireland: www.centralbank.ie (external link)

Should you have any questions or wish to discuss any of the above please email us at uk&[email protected]

As a result of the UK’s decision to leave the European Union, we are making some necessary changes to our business structure to ensure continuity of cover to all our customers with European risks. In most cases you should see and feel very little change from us, if any at all. 

A key implication of Brexit is the loss of ‘passporting rights’ which allow Hiscox to conduct cross-border business throughout the European Economic Area (EEA) either directly from the UK or through our branch offices across Europe. Hiscox currently operates through an insurance company (Hiscox Insurance Company Limited), an agency (Hiscox Underwriting Limited) or via Lloyd’s of London, all of which are registered in the UK and will therefore lose their passporting rights.

Our priority is to ensure we can continue to provide products and services to policyholders with EEA risks; what that looks like will vary slightly depending on which part of the business you work with.

We have established a new European insurance company in Luxembourg, called Hiscox S.A., which received its license from the Luxembourg regulator in January 2018 and has an A rating from S&P. Hiscox S.A. will become the new home for the EEA-domiciled risks that we write through our European and UK branch networks.

Part VII transfer process

We intend to transfer all live policies and historical liabilities that would be impacted by the loss of passporting rights from Hiscox Insurance Company Limited to Hiscox S.A. as part of a legal process known as a Part VII transfer. This is proposed to take effect from 1st January 2019, with new business also being written into Hiscox S.A. from that date. This will ensure continuity of cover post-Brexit for all policyholders with European policies. Quotations will continue to be provided in the normal course of business and, depending on timings, will be either from Hiscox Insurance Company Limited or Hiscox S.A.

Communication with policyholders

We are required as part of the transfer process, to notify in writing all affected policyholders. In Q3 2018, policyholders will receive a letter and a Scheme Booklet which will contain:

  • some additional questions and answers;
  • a summary of the Proposed Transfer;
  • a summary of an Independent Expert’s report;
  • notice of the Proposed Transfer; and,
  • details of how they can contact us.

We are currently making arrangements for the communication exercise, and we may contact, or may have already contacted, your firm to seek assistance in preparing for this.

We will keep you updated over the coming months. At this stage, you do not need to take any action. If you have any questions, please speak to your usual Hiscox contact.