While August is generally a quiet month for news, we’ve compiled some key regulatory updates in insurance and compliance sectors. This month, we cover key updates in the insurance industry, including the Lloyd’s Market Association’s consultation on the Digital and Automated Risk Exchange (DARE) for enhanced Delegated Authority digital risk placement. We also highlight Lloyd’s new guidelines for syndicate business planning and capital setting for 2024. Additionally, get the latest on Velonetic’s leadership change and digital project re-plan. The FCA’s call for better proof of fair value and outcomes from GAP insurers is also on our radar, alongside new U.S. reporting requirements under the Corporate Transparency Act. 

LMA’s 2024 Consultation on DARE

The Lloyd’s Market Association (LMA) is seeking feedback on its 2024 consultation for the Digital and Automated Risk Exchange (DARE). This initiative aims to enhance market efficiency and transparency by refining the digital exchange processes for Delegated Authority within the Lloyd’s market. The consultation is open for industry input, focusing on improving digital risk placement and data management standards. Learn more.

Lloyd’s Market Bulletin Y5442

Lloyd’s has issued Market Bulletin Y5442, which outlines the updated requirements for syndicate business planning and capital setting for the 2024 underwriting year. 

The auction dates for 2024: 

• Auction 1 22 & 23 October 
• Auction 2 29 & 30 October 
• Auction 3 5 & 6 November

 The auction settlement dates for 2024 : 

• Auction Statement Date 8 November 
• Auction Debit Date 21 November 
• Auction Credit Date 25 November. 

Velonetic Appoints New CEO and Confirms Phase One Re-Plan

Velonetic has announced the appointment of a new CEO and provided details on the re-plan for Phase One of its key digital project. This update reflects the joint ventures’ decision to move quickly with key changes in leadership required to get the delayed BP2 phase 1 back on track. Read more.

FCA Calls on Insurers for Fair Value and Good Outcomes

The FCA reports that while insurers and brokers have improved governance in product management, many still struggle to prove they provide fair value and good outcomes for customers. Issues include poor information sharing and unclear target markets. The FCA warns that if firms cannot demonstrate compliance with its rules, it will take regulatory action. Recent interventions include a pause and subsequent resumption in the sale of GAP insurance after product revisions. The FCA also released its latest Value Measures Data. This follows last’s months news of the FCA’s Discussion on Commercial Insurance Regulation.

For more information, click here.

New U.S. Beneficial Ownership Reporting Requirements Effective January 2024

Starting January 1, 2024, under the U.S. Corporate Transparency Act, many U.S. companies, including subsidiaries of UK and European firms, must report beneficial ownership information to FinCEN. This mandate aims to combat financial crimes by enhancing transparency. Companies must determine their reporting obligations to avoid severe penalties. Initial reports are due by January 1, 2025, for existing companies, with specific deadlines for newly formed entities. The information required includes company details and identifying data for beneficial owners and applicants. Learn more.