The Philippines’ Insurance Commission (IC) has relaxed the rules on net worth and risk-based capital (RBC) requirements to provide relief during the Covid-19 outbreak, according to a report published in newspaper Philstar. According to the paper, insurance commissioner Dennis Funa said: “The insurance industry requests for temporary relief on the implementation of the net-worth requirements and risk-based capital requirements for…
Credit ratings agency Moody’s has said that a new regulation on credit and guarantee insurance, issued by the China Banking and Insurance Regulatory Committee (CBIRC), will tighten insurers’ capital requirements and help reduce the risk of significant losses from default during the coronavirus pandemic. Moody’s said the new rules are credit positive. The new regulation defines financing credit and guarantee…
The Monetary Authority of Singapore (MAS) has announced that financial institutions (FIs) will be allowed to reopen more customer service locations from 2 June 2020, as the country attempts to gradually return to normal as the Covid-19 pandemic eases. But the authority said the move will be controlled by “strict risk management guidelines”. Singapore has suffered a total of 32,343…
The Australian government is tightening regulatory scrutiny of litigation funders, as part of an effort to clamp down on the industry following a surge in expensive class-action lawsuits, according to Reuters. Australian government treasurer Josh Frydenberg said on Friday that litigation funders will now be required to hold an Australian financial services provider licence within three months. This will increase…
An emergency summary procedure carried out by the Paris Commercial Court has ruled that AXA must pay a restaurant owner two months’ worth of coronavirus-related revenue losses, the lawyer representing the plaintiff announced on Friday. It is thought that the ruling could spark a wave of copycat litigation in France. The bill faced by restaurants, hotels and bars incurred by…
Credit ratings agency Fitch has said that “loose” business interruption (BI) wordings in some cases may well impact the credit quality of some UK non-life insurers, as court cases brought by businesses hit by the virus lockdown escalate. “The credit quality of some UK non-life insurers could be affected by court rulings on the validity of business interruption claims arising…
An open letter signed by almost 700 business owners in the UK has accused the insurance industry of an “abrogation of responsibility” by refusing to pay out on business interruption (BI) insurance claims brought because of the country’s lockdown. The letter to the Association of British Insurers (ABI) says that the stonewall on BI claims will result in the failure…
Credit ratings agency Fitch has said the insurance sectors in Australia and New Zealand are generally well equipped to cope with the Covid-19 virus, despite mounting claims and investment losses. Fitch carried out a review of its ratings on nine insurers in the two countries and only shifted its outlook to negative from stable on two of them; the others…
A working group formed by the Indian insurance regulator (the IRDAI) has proposed increases in the levels of indemnity provided to policyholders by trade credit insurers and also an extension of coverage to include default by sellers and exporters. As elsewhere in the world, the Indian authorities have realised that trade credit capacity is evaporating just as businesses need it…
The recently formed Hospitality Insurance Group Action (HIGA), created to pursue business interruption (BI) claims for virus-related losses suffered by companies in the UK hospitality sector, has decided to focus its efforts on policies issued by Aviva and QBE, advising policyholders to sign up by 5 June. The HIGA announced that its legal advisers Mishcon de Reya, in conjunction with…