The Insurance Authority (IA) published its latest issue of Conduct In Focus1 today (3 August 2022) presenting statistics on complaints received in the first half of 2022, giving practical guidance to insurance practitioners on regulatory matters and highlighting topical issues for policyholders.
In the Practice section, we look at the importance of regulated entities self-reporting material breaches and incidents to the IA, and how self-reporting serves as an integral part of a robust corporate governance and control framework. We also highlight the IA’s recent disciplinary actions which have penalised a range of undesired practices, including mishandling of client monies, misleading statements in e-mail marketing and non-compliances with Continuing Professional Development requirements.
In the Policyholder Corner, we examine the concept of premium financing (i.e. taking out a loan to pay premiums under an insurance policy, with the aim that the value of the benefits under the policy will exceed the cost of the loan) and highlight risks which policyholders should be aware of before considering such arrangement. To protect policyholders, the IA has recently introduced an “Important Facts Statement – Premium Financing” 2 which will need to be used to highlight the associated risks whenever a policyholder is considering funding the purchase of an insurance policy using premium financing.
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Notes:
1Conduct In Focus is a periodical newsletter which presents statistics and commentary on complaints received by the IA and examines topical regulatory issues relating to conduct in the insurance market.
2 The relevant arrangement will come into effect on 1 January 2023.