Buyer and broker representative bodies have hit back at claims that conflicts of interest are to blame for the growing number of disputed business interruption (BI) claims arising from the coronavirus pandemic. Insurance claims consultant Mactavish argues that legal disputes over Covid-19 BI claims have raised questions around the role of the broker as an adviser to insureds and potential…
Large major events and sports tournaments will carry substantial risk from further outbreaks of Covid-19 or other pandemics next year as insurers withdraw cancellation cover, GlobalData has warned. Its comments follow news that the Wimbledon tennis championship will not be able to renew its pandemic cancellation coverage for the 2021 tournament. Wimbledon was one of the few global events to…
Profits at European P&C insurers will be pressured for longer than first thought as investment returns take a hit, according to Moody’s. It said that low interest rates and falls in government bond yields will chip away at investment returns for Europe’s P&C insurers, while rate increases have been unable to keep pace with claims inflation. “Persistently low yields will…
New research from Airmic shows that UK organisations were caught off guard by Covid-19 but suggests the crisis provides a real opportunity for risk managers to prove their worth. It also finds that insurers risk a flight to alternative risk transfer if they mishandle the pandemic. The Top Risks and Megatrends 2020 report is based on Airmic’s annual member survey that…
Airmic has welcomed Lloyd’s’ pandemic resilience proposals that include a government-backed non-damage business interruption (NDBI) solution to help companies mitigate losses from Covid-19 and future viruses. Airmic said buyers have worked with Lloyd’s to develop three initiatives put forward and welcomed the collaboration as “vital” during such a “far-reaching crisis”. The UK risk and insurance management association said businesses are…
Reinsurance capital levels are running at just 5% lower than the end of last year, after investment markets staged a recovery from the Covid-19 shocks in the spring, according to Willis Re in a June and July renewals report. But the market continued to harden. At the end of March, reinsurance capital levels were down 30%. However, they have since…
The Hiscox Action Group (HAG) and Hospitality Insurance Group Action (HIGA) will be allowed to intervene in the Financial Conduct Authority’s (FCAs) business interruption (BI) test case that is due to be heard this month. The groups’ requests to join proceedings were approved by Lord Justice Flaux and Mr Justice Butcher in the second case management conference. Each group can…
The Covid-19 pandemic has heightened political and economic risks, with a bungled recovery and threat of economic paralysis meeting political weakness the top threats, warns Control Risks in a special edition of its Risk Map 2020. Control Risks has also raised the operational risk level for several European countries following Covid-19. This includes the UK, Spain and Germany, which all…
Allianz Global Corporate & Specialty (AGCS) is embarking on a major ‘New AGCS’ global transformation programme to “rebuild” profitability, which will see a regional shakeup, a new head of multinational, appointments from AIG, AXA and ARGO, and put technical underwriting before growth. The move follows news last month that S&P has revised its outlook on AGCS from stable to negative.…
Many commercial insurance buyers will face significant cuts to their insurance budgets during 2020 and into 2021 as a result of Covid-19, just as insurers crank up rate increases, warned Hugo Wegbrans, global chief broking officer at Aon. This will leave many companies facing difficult questions about insurance cover. Mr Wegbrans predicted that the commercial and specialty insurance market will…