United Kingdom: Insurance Laws and Products

While buy-ins have traditionally been reserved for larger pension schemes, the risk transfer market is becoming increasingly accessible to smaller schemes. However, trustees must adjust their expectations and adopt a more pragmatic approach, as insurers offer streamlined rather than bespoke solutions to make these transactions commercially viable.

The FCA has published its final report on the distribution of pure protection products, examining firms' fair value assessments under the Consumer Duty and PROD 4. The regulator found significant gaps in how insurers and intermediaries evidence their fair value conclusions, particularly around commission structures and guaranteed acceptance over 50s products, signaling that supervisory action will follow for firms with weak frameworks.

When a professional negligence claim approaches limitation and the proposed defendant has been dissolved, the Third Parties (Rights against Insurers) Act 2010 offers a potential route to pursue claims through professional indemnity insurers. However, a recent High Court decision demonstrates that this Act does not suspend limitation periods, leaving claimants vulnerable if they fail to take timely protective steps before the ordinary six-year deadline expires.

The Court of Appeal's decision in Turner v Coupland clarifies the scope of solicitor-client assessments under the Solicitors Act 1974, determining that disputes over after-the-event insurance commissions cannot be resolved through these proceedings. While solicitors successfully argued that ATE premium commission questions fall outside assessment jurisdiction, the court emphasized their fiduciary duty to disclose such information when asked...

The Strait of Hormuz has become a critical flashpoint for global maritime trade following the outbreak of hostilities involving Iran in 2026. With approximately one-fifth of global oil trade passing through this vital waterway, commercial shipping now operates under unprecedented security threats including missile attacks, drone strikes, and mine risks. Marine insurance premiums have skyrocketed from 0.125% to as high as 10% of vessel values, fundamentally altering the economics of Gulf trade and forcing th

Allegations of fraud against directors or officers frequently give rise to coverage issues under D&O insurance, particularly if insurers perceive that if the fraud allegations were true...

The latest research into e-scooter injuries reveals that riders face significantly greater risks of serious injury than motorcyclists and cyclists, with traumatic brain injuries occurring at more than three times the rate. These findings raise critical questions about liability frameworks, insurance exposure, and the urgent need for regulatory reform in the UK's evolving e-scooter landscape.

US medical malpractice data reveals emerging healthcare liability trends that consistently appear in America before reaching the UK, offering insurers and indemnifiers critical early warning signals. With the gap between US and UK trends narrowing, particularly in areas like aesthetics and GLP-1 weight-loss medications, understanding these patterns becomes essential for identifying and managing risks before they mature into significant liability exposures.

This August edition examines critical developments reshaping the insurance landscape, from agentic AI underwriting challenges following a major OpenAI incident to emerging liability concerns around unlabelled chemicals in consumer products. The analysis explores how autonomous systems, geopolitical transit fees, and AI-powered claims processing are fundamentally altering risk assessment and operational frameworks across multiple insurance lines.