Parametric insurance is insurance in which the payment is triggered by reference to a pre-determined parameter or ‘index’ that stands as a proxy for loss. For example, a policy designed to provide funding to a policyholder in flood or drought conditions could be triggered by excess or insufficient rainfall measured by a local weather station. Parametric insurance has wide-ranging applications,…
On 12 January this year, US President Trump announced his intention to not renew US sanctions waivers that underpin US participation in the Joint Comprehensive Plan of Action (JCPOA) for Iran if that agreement’s “terrible flaws” are not fixed. President Trump has also said that if he believes fixing the JCPOA is not within reach, he would withdraw from it.…
Sexual abuse, harassment and misconduct continue to place higher up the political and social agenda globally, following a raft of allegations in ever-widening high-profile sectors. Increasing public awareness has burst the dam of secrecy, resulting in a tsunami of calls for greater transparency across many organisations and industries. As a consequence, corporate cultures must change to ensure appropriate safeguards are…
Litigation funders are travelling the world looking for fertile ground to bring claims and finding success in an increasing number of places, warns Tricia Hobson, Norton Rose Fulbright global chair and head of its Australia and Asia-Pacific insurance practice. Speaking in London recently, she said much of the pattern of behaviour follows the US, but claimant lawyers and litigation funders…
As regulatory and criminal investigations into companies and individuals continue apace across the globe, so does the exposure of those involved, and their insurers. Whether fines and penalties are insurable is a complicated issue in many jurisdictions. Focusing on Asia in this article, we set out below a snapshot of the current position in China, Hong Kong, Malaysia, Singapore and…
The recent global focus on Facebook and Cambridge Analytica’s use of data and the forthcoming General Data Protection Regulation (GDPR) have thrown the spotlight on data and privacy issues. An important issue in this context is whether an individual has the right for that data to be removed or forgotten. A recent UK High Court ruling has found that individuals…
The use of captives as a strategic risk management tool is under development in Asia. The penetration of captives on the continent is still relatively low compared with regions such as the US and Europe, where captives have been a fixture of clients’ risk management strategies for many years. But Asia-based clients, and companies with exposures in Asia, increasingly are…
The annual report of the Global Federation of Insurance Associations (GFIA) has highlighted that an increasingly protectionist environment threatens open trade and market access in (re)insurance. In an article in the report, Brad Smith, chair of the GFIA trade working group and chief international officer at the American Council of Life Insurers, writes that global trade dynamics have changed in…
Economic growth may be slowing in China, but the outlook for the insurance sector remains excellent. That’s the view of Munich Re in a recent report, and it is not alone. There is still a good deal of optimism surrounding the Chinese insurance market, and foreign insurers are as keen as ever to get some sort of foothold on the…
On 21 September 2017, the US dramatically expanded the scope of US sanctions that apply to those who do business with North Korea. These new sanctions target not only foreign companies that trade with North Korea, but also the foreign financial institutions (FFIs) that finance such trade. Companies that trade with North Korea, or that have an interest in trading…