Global value chains have bright future despite virus supply chain shock: Coface

Global value chains have bright future despite virus supply chain shock: Coface

Global value chains have bright future despite virus supply chain shock: Coface

Risk managers and their colleagues in supply chain and business continuity will have to look long and hard at the practicalities of near-sourcing their supply chains, in response to the havoc caused by the Covid-19 virus, according to experts at France-based credit insurance group Coface. Many companies are currently examining their reliance on supplies from different countries of the world…

AXA seeks to settle 1,700 BI claims with restaurants as lawsuits continue

AXA seeks to settle 1,700 BI claims with restaurants as lawsuits continue

AXA seeks to settle 1,700 BI claims with restaurants as lawsuits continue

AXA CEO Thomas Buberl has told Le Monde newspaper that the insurer has identified 1,700 of its contracts with restaurant owners in France in which the terms are not clear about whether Covid-19-related losses are covered by business interruption (BI) insurance. Mr Buberl said discussions are underway with the restaurants that hold the ambiguous policies, and agreements have already been reached…

AXA estimates €1.5bn insured loss from Covid-19 and reduces dividend

AXA estimates €1.5bn insured loss from Covid-19 and reduces dividend

AXA estimates €1.5bn insured loss from Covid-19 and reduces dividend

AXA expects Covid-19-related claims of about €1.5bn this year and has cut its dividend payment pretty much in half as a result of the pandemic. The insurer said it will suffer overall P&C claims of about €1.2bn post tax and net of reinsurance from the global pandemic in 2020. Most will be from business interruption and event cancellation policies. There…

Paris court orders AXA to pay BI losses for restaurant chain

Paris court orders AXA to pay BI losses for restaurant chain

Paris court orders AXA to pay BI losses for restaurant chain

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…

Airmic welcomes delayed UK government credit insurance scheme

Airmic welcomes delayed UK government credit insurance scheme

Airmic welcomes delayed UK government credit insurance scheme

UK risk management association Airmic has welcomed the news that its government has agreed to provide reinsurance support for trade credit insurers to ensure that companies can maintain critical cover against insolvency in the supply chain during the current Covid-19 pandemic. But the UK has been slow off the blocks to support its exporters. The scheme, which will be operational…

Covid-19 contributes to higher prices and capacity pressures, Aon says in Q1 report

Covid-19 contributes to higher prices and capacity pressures, Aon says in Q1 report

Covid-19 contributes to higher prices and capacity pressures, Aon says in Q1 report

Insurance rate hardening accelerated in Q1 with Covid-19 impacting some regions, according to a new report from Aon that found Europe recorded rate increases of more than 10% in the first few months of 2020. The market has also tightened on terms and capacity, Aon says, with higher risk placements “very challenging” in Europe. Aon adds that insurers have retreated…

Covéa’s renegotiations see $9bn PartnerRe deal collapse

Covéa’s renegotiations see $9bn PartnerRe deal collapse

Covéa’s renegotiations see $9bn PartnerRe deal collapse

Covéa has retracted its $9bn offer for Exor-owned Bermudan reinsurer PartnerRe, after attempts to renegotiate the deal in light of Covid-19 ended in failure. With animosity seemingly growing between the two sides, Exor said Covéa attempted to renegotiate the terms of the deal but the French mutual’s “refusal to honour its commitment” was unjustified. Covéa said “current unprecedented conditions” and…

EC approves French export guarantee scheme for SMEs hit by virus

EC approves French export guarantee scheme for SMEs hit by virus

EC approves French export guarantee scheme for SMEs hit by virus

The European Commission has approved, under EU state aid rules, a French guarantee scheme for small and midsize companies with export activities that are affected by the coronavirus outbreak. It is thought the scheme will mobilise some €200m. This follows approval given by the EC for a guarantee scheme that will be managed by the Czech export credit agency EGAP,…

Innovation coming to fore through Covid-19 crisis, says Louppe

Innovation coming to fore through Covid-19 crisis, says Louppe

Innovation coming to fore through Covid-19 crisis, says Louppe

Being prepared and flexible has been key in finding innovative solutions to working through the Covid-19 crisis, according to Florence Louppe of HDI Global. Coping with the Covid-19 pandemic has brought out the best in people as they find innovative solutions and workarounds to keep business moving through worldwide lockdowns, said Ms Louppe, the insurer’s country manager in France. “Right…

RMS develops European convective storm model

RMS develops European convective storm model

RMS develops European convective storm model

RMS has launched a new model for convective storms in Europe, which caused €12bn of insured losses between 2013 and 2019. The model covers a range of severe convective storm events, including localised tornadoes and hailstorms. It models property and motor policy losses. The European Severe Convective Storm High Definition Model covers 17 countries where the risk of severe convective…