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#Switzerland - Insurance intermediaries: mandatory follow-up documentation to be submitted to FINMA by the end of June 2024 The revised Swiss Insurance Supervision Act (#ISA) and the revised Swiss Insurance Supervision Ordinance (#ISO) entered into force on 1 January 2024. To ensure better client protection, the requirements governing insurance intermediaries were enhanced. Insurance intermediaries must submit follow-up documentation to the #Swiss Financial Market Supervisory Authority #FINMA by the end of June 2024. FINMA has set out the necessary steps for #InsuranceIntermediaries in a guidance document. FINMA is publishing guidance to draw the attention of #insurance intermediaries to the deadline for submitting the mandatory #FollowUpDocumentation by 30 June 2024 at the latest. Insurance intermediaries who submit their follow-up documentation by then may continue to operate as insurance intermediaries until FINMA decides whether they meet the #registration requirements. Failure to submit an application for follow-up documentation will result in deletion from the register. In its guidance, FINMA also sets out the steps that registered #UntiedInsuranceIntermediaries must take to submit the follow-up documentation application. In addition, FINMA is providing information on the current number of applications for follow-up documentation that have already been received and approved by FINMA. MLL Legal

India continues to use factor based capital for Solvency calculation for insurance. In US, RBC is used by NAIC (National Association of Insurance Commissioners) for insurers. Europe applies Solvency II, which is also based on RBC. In India the insurers still not confident to adopt Risk Based Capital for Solvency. RBC is a framework to ensure that insurance companies have sufficient capital to absorb risks inherent to their operation. For the past few years National has not met the RSM (Required Solvency Margin) which is 1.5x. Even currently their Solvency Ratio is below 0.50%. RBC considers various risks the insurers face like underwriting risk which is deeply affected by pricing inadequacy and claims volatility. Less to be mentioned about operational risks like internal control and fraud etc. RBC throws certain threshold for action at company level, Regulatory level and in the event of any adverse situation the Regulatory can take control of the organisation. The reality is the PSUs unable to meet the factor based solvency, continue to get the forbearance from the Regulator. The fact that as a going concern whether the company is sustainable with sufficient capital buffers aligned to their risks exposures is the moot question. Views are welcome. #riskbasedsolvency

The three PSUs have been making huge losses even after taking investment income into account for the past many years. Any organization which makes operating losses may be asked by the auditors to cease to be an operating concern or a going concern. In case of the PSU insurers there has been even a deterioration in value. The net worth is almost negligible. The solvency ratios have dimnished. Even periodic infusion of capital by the government has not helped. The solvency ratio being negative indicates liabilities are more than assets which is intriguing. I do not understand as to what makes the top management of National think that they will benefit by RBC. Revaluation of assets on the basis of the current market value may give a temporary reprieve. But, if there is no improvement in the operational performance of the company then the revalued assets including the real estate assets will also shrink in the coming years. It will reach the current perilous state in the coming years if there is no improvement in underwriting. We need a sustainable improvement in performance. Not a one time exercise which will mask the wounds but not heal them.

[Legal Briefing] In July 2023 and in November 2023, the Government and the Ministry of Finance (MOF) issued Decree No. 46/2023/NĐ-CP (“Decree 46”) and Circular No. 67/2023/TT-BTC (“Circular 67”), respectively. These guiding documents aim to strengthen sector regulation, guiding licensing processes, adjusting insurance companies’ minimum charter capital, and imposing stricter conditions for ‘bancassurance’ services, thereby steering the market’s positive development. This article, authored by Partner Quyen Hoang and Senior Associate Nguyen Duy Thanh, provides several key updates in insurance business concerning scope of operation of an insurance company, cross-border insurance services, insurance service via the Internet, requirements and conditions for credit institutions, insurance agents and other players in this sector. To read and download the PDF, please visit: https://lnkd.in/gqZdDFih #LNTPartners #insurance #bancassurance #bank #baohiem #nganhang

Early 2024, moneycontrol.com Personal Finance (Khyati Dharamsi) had pointed out how investors can get mis-led by insurance companies trying to sell ULIPs (Unit-Linked Insurance Policies) in the name of small-cap and mid-cap funds. This was done largely to capitalise on the equity market euphoria. Now, IRDAI (the insurance regulator) has come up with a new rule that insurance companies cannot sell equity-oriented ULIPs without mentioning the life cover element. https://lnkd.in/dgur_hXt

NCDRC - One more case of dishonour of cheque for renewal of policy by Airlines Pilot, although sufficient funds were in the bank. There is no reason why IRDAI is not implementing various modes of online payment through Insurance Regulatory and Development Authority (Manner of Receipt of Premium) Regulations came into force on 17.10.2002. #ncdrc #insurance #irdai #renewal #dishonour #cheque #deficiencyinservice #legaldeli https://lnkd.in/dMbHG8ZC

NCRDC found that the insurance policy was not renewed due to the failure of the Bank to link MOD with the SB Account. The pilot job of the complainant was a high risk job with attendant stress and pressure. An insurance cover of pilot has also implication on the lives of those who fly in the aircraft. The findings of the State Commission that negligence is not established since there was no resultant damage is an argument that cannot be countenanced. In the event of a mishap having occurred which would have left him or his next of his kin bereft of any insurance payable. The action of the Bank in returning cheque for insufficiency of funds, when in fact adequate funds were available, is manifestly an act of deficiency of Banking services. It cannot seek to hide behind the argument that the claim was speculative since no need for insurance actually arose. The complainant was entitled to the services on payment of insurance premium to the insurer for which the cheque was issued well in time and is not disputed. #ncrdc #insurance #renewal #dishonourofcheque #deficiencyinservice #irdai #legaldeli

Insurance Institute of India (III), the federation of Insurance Institutes formed for the purpose of building academic and professional capacity for the #insuranceindustry and FPSB India (Financial Planning Standards Board) entered a strategic collaboration and signed a MoU aimed at enhancing professional development within the insurance and #financialplanning sectors. https://lnkd.in/gXPsDaHt

The Insurance Commission (IC) recently issued the first takaful operator's licenses to Pru Life Insurance Corporation of U.K. (Pru Life UK) and Etiqa Life and General Assurance Philippines, Inc. (Etiqa), respectively. #insurance #banking #bonds #stockmarket #stocks #realestate #finance #Business #Corporate #Corporation #Entrepreneur #Philippines #Financial #Invest #Investment #investingtips

#MCExclusive | #FinanceMinistry may infuse capital into 3 public sector insurance companies after analysing their Q3, Q4 results of FY24, #DFS Secretary Vivek Joshi said. Read on ⬇️ https://lnkd.in/gtMtNFsb #PSU #Insurance #Economy #Finance