Welcome to our summer edition of KUWT for Insurance. I know that many of you are still working from home, but we are starting to see the path out of lockdown, and some of our team have now started to return to the office. The greatest precautions need to be taken to avoid a second wave, but I know that for many people starting to work from the office again will make a big difference to your working week even if only part time. We have summarised our latest views on returning to the office here which includes some thoughts from our experiences of this to date.
On this theme, I was also very pleased to see the cricket return, although as with England in sport in general, they don’t make it easy to watch for a supporter. Hopefully, they’ll improve the more they play!
Moving back to more directly relevant matters for insurers (as we could discuss the cricket here all day!), there have been a number of important updates over the last month. Firstly, outside of the UK (but still not too far away), we've seen the EU Court's ruling in respect of Irish State Aid and transfer pricing, which found in Ireland/Apple's favour. We're analysing the impact of this judgement on both the transfer pricing approach in State Aid cases generally, and of course on wider tax related state aid cases (notably on the UK FCPE). We'll cover this in more detail in future editions.
The IASB issued amendments to IFRS17 ‘insurance contracts’. Please read our latest blog on this update, as this could be the start of some much-needed stability and importantly for life insurers this included some changes around the treatment of policyholder taxes in reserves.
Additionally, we published the results from our latest PwC/CBI Financial Services Survey last month. The Insurance sector findings highlighted that the pandemic has created renewed urgency around digital transformation and it’s also driving a reassessment of how insurers work and engage with clients and the physical presence needed to support this. Explore the Insurance sector findings and more here.
