NEWS FROM THE ITFA INSURANCE COMMITTEE by Silja Calac – ITFA Board member, Head of Insurance Activities



Before the year end we would like to give you an update on activities and changes from the ITFA Insurance Committee:

Change in composition

After three years of very successful cooperation, our team is changing for 2019.

Karl Page from Barclays will be taking over the chair of the ITFA Northern European Regional Committee (NERC) and so is stepping down from the Insurance Committee to allow him to dedicate his time fully to this new challenge. We thank Karl and his colleague Tony Costa, his deputy, very much for their great support and we wish Karl every success for his work as chairperson of the NERC. The vacancy will be taken over by Jean-Maurice Elkouby, head of credit insurance at ING’s Syndicated Finance department, and his colleague Evelyne Deswysen.

Also, in order to adjust the number of brokers involved to the banks and insurers, we are pleased to announce that Sian Aspinall, Managing Director at BPL Global, has agreed to join the Insurance Committee.

As our cooperation with ATFA, the Association of Trade & Forfaiting in the Americas, enters into a new phase we are very pleased to now have reinforcement from New York for the Insurance Committee: Harpreet Mann from QBE and President of ATFA will also be joining the Insurance Committee.

We welcome Jean-Maurice, Evelyne, Sian and Harpreet and look forward to working with them. You will find pictures of all our members on the Insurance Committee page on the ITFA website.

The composition of the Insurance Committee going forward is therefore::

Banks:

SMBC (Matthew Beckett, Sean Edwards)

BNP (Sébastien Heurteux)

ING (Jean-Maurice Elkouby, Evelyne Deswysen)

Insurers:

Swiss Re (Silja Calac, Volker Handrich)

AIG (Marilyn Blattner-Hoyle, Olga Berlinskaya)

Liberty (Huw Owen)

Brokers:

Willis TW (David Neckar, Andrew van den Born)

Texel (Katie Fowler, Carol Searle)

BPL Global (Sian Aspinall)

ICISA: Robert Nijhout

ATFA: Harpreet Mann

Legal Advisor: Geoffrey Wynne, Sullivan & Worcester UK

Review of the year 2018

The year started with a big shock to the market – we were hardly back from New Year’s celebrations and skiing holidays when we found a Consultation paper from the PRA on our tables, which proposed to clarify the PRAs interpretation on certain provisions of the CRR – i.e. under which conditions a guarantee would be eligible as a Credit Risk Mitigant.  These interpretations were not in line with insurance market practice and therefore presented a challenge to the cooperation between banks and insurance companies. ITFA immediately reacted and submitted to the PRA on 14 May 2018 a 108 page long paper to help the UK regulator to better understand our business. ITFA cooperated closely on this paper with other organisations such as ICISA, BAFT, Lloyds Markets Association and ICC.

Important lesson learned: a coordinated market reaction is possible and efficient. Availability of accurate data to underline the purpose is crucial.  Other regulators are following PRA’s example: the German regulator, Bafin published a paper dealing with similar issues raised by the PRA consultation. This highlights the importance of making sure insurance business is understood by European regulators who may have their own interpretations of the CRR.

The Insurance Committee continues to work on education – with several presentations at various conferences and one insurance seminar which was held in October this year in cooperation with the South European Regional Committee in Paris.

Projects in progress

The momentum received from the great cooperation and advocacy work on the PRA consultation is very useful for the next large project the ITFA Insurance Committee is working on: in December 2017 BCBS has published the reforms to Basel III which are to be implemented between 2022 and 2027 into local law.

The European Union will start to work on the adjustments of CRR / CRD probably at the beginning of 2019, therefore the ITFA Insurance Committee is now working on a paper to help the European legislator to better understand the scope of our market and raise awareness.

At the same time – in order to further help standardization in the market – ITFA is working on a Surety MRPA.

Please refer to our member area of the website:  http://itfa.org/member-area/insurance/ to view all our publications and to contact us for any further need for clarification.

I would like to take this opportunity to thank all ITFA Insurance Members and all others who have helped us for your fabulous commitment. I found the amazing cooperation throughout this year really inspiring and motivating. I wish you all the best for the year end season and for 2019.