Market Research Report UK Insurance industry Regulations,UK insurance ind | Page 2

Ken Research report titled “Professional Indemnity and D&O Insurance
in the UK-Key Trends and Opportunities to 2020” says, insurance in the
United Kingdom is divided into various categories. The categorisation
put in sections 333B, and 431B to 431F of the Income and Corporation
Taxes Act 1988(ICTA) and each category of business given a different
tax treatment. TheFinancial Services Authority was formed in 2001 as
the regulator. In 2013 theFinancial Services Authoritywas
dissolvedandFinancial ConductAuthority and Prudential
Authority were given responsibility of financial conduct.
Regulation
Professional indemnity and Directors and Office insurance is needed to
protect professionals and businesses when claim made by third party. It
protects an individual when made against him/herfor alleged wrongful
acts in their capacity as a Director or Officer or against the organisation.
Claims can be made either by shareholders or creditors however
recently a growing incidence of claims being made against Directors &
Officers by regulatory bodies. It also covers the legal and other costs and
expenses incurred in the defence of a claim. Professional Indemnity
Insurance and Directors & Officers Insurance operate on the basis of
“claims made basis” I.e. policy comes in force at the time the claim is
notified which will operate irrespective of when the alleged act of
professional negligence or wrongful act took place or when the work
was actually undertaken .