Business Interruption
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Policy holders The Taphouse Townsville and LCA Marrickville, and insurer IAG have each filed applications for special leave to appeal to the Australian High Court.
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The court upheld decisions made in October, although it reversed some elements of the case between IAG and Meridian Travel.
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The broker expects ongoing single-digit growth within the ILS market.
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The November gathering will aim to combine a virtual segment and a “scaled-down” live event held in line with health and safety protocols.
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The carrier last year said its K sidecar would pick up Covid claims over time.
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The firm reported an industry-wide loss of $36.8bn caused by the pandemic, up from $29.5bn in Q3.
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The tally so far comes in far below the broker’s year-ago estimate of $80bn for a twelve-month lockdown.
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The organisers pledge to return to Monte Carlo in September 2022.
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The firm reported a $100mn drop in ILS AuM to $1.4bn, although previously had said deployable capital was lower.
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Some had argued that the definition of occurrence used by judges could make it harder for insurers to aggregate treaty claims.
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The carrier revealed 10.9% premium volume growth at 1.1.
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The fund’s worst ILS return to date is understood to be driven by investments hit by Covid-19.
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Some pointed to low average costs to fix burst pipe claims, while others warned that BI could drive up losses.
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The EU’s chief insurance supervisor wants capital markets to augment the capacity provided by traditional (re)insurers.
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The European (re)insurance supervisor said correlation to financial market risk made the idea a challenging one while reinsurance appetite is also very limited.
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The Australian carrier has also modestly increased its reserves for Covid-19 BI claims.
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The analyst predicts the insurance sector could experience its best performance in nearly a decade.
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The ratings agency foresees no “material effect” on the capital or earnings of UK commercial property insurers following the Supreme Court ruling.
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Fenchurch Law partner suggests "aggressive" initial claims adjustments will be unwound and the reinsurance context will need specific consideration.
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The firm aims to use AI to fill the protection gap left by “black swan” events like Covid-19.
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Some markets on the programme have pushed back on the inclusion of event cancellation exposures.
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This came after analysts said reinsurers could face further cat losses as a result of the case, although XoL claims are likely to be disputed.
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Citizens projected it would cede $94mn in storm losses to reinsurers but has cut this to $62mn.
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The court’s decision was the final step in a protracted legal battle stretching back to May last year.
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The year was marked by record North Atlantic storms, which put the loss tally more than 40% ahead of mild 2019 experience.
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The consultancy said losses were expected to keep mounting following Q4 disclosures.
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Losses were relatively evenly divided between the two events.
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The insurer said its reserving was still adequate after the court supported its overall approach, but said biosecurity exclusions were not sufficient to decline claims.
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The regulator says that the insurance sector had remained resilient this year but faced ongoing threats.
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Occurrence retro rates are among the segments where rate pressure is abating, although the outlook remains somewhat opaque in a late renewal.
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Carriers have raised $19bn so far this year, with another $3bn in the pipeline, the broker says.
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The German carrier pegs the full-year impact of the pandemic on its reinsurance operations at EUR3.4bn.
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The carrier seeks to address potential BI liabilities following a court ruling.
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A fresh BI ruling in Australia this week highlighted the industry's reason for caution over Covid exposure as legal actions continue.
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The carrier plans to raise A$750mn in new equity capital to help shore up its balance sheet, and has further eroded its aggregate reinsurance.
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Both Suncorp and QBE said multiple tests applied to trigger BI coverage, with QBE saying aggregate reinsurance should mitigate net exposure.
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Court rules policy exclusions referring to outdated law not valid.
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Australian carrier ups coronavirus BI provision to A$195mn.
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The carrier expects its total losses to reach EUR700mn-EUR900mn, as Covid claims reports begin to flow to reinsurers.
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Sources think the court ruling in favour of a German beer hall in October could have widespread repercussions.
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The carrier has fully eroded the retention on its group aggregate cover, limiting Q4 cat exposure.
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The case was launched after thousands of businesses attempted to claim on their insurance for Covid-19 related BI.
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Applications have been filed for a 2 October hearing.
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The president and CEO urges wordings precision to avoid cyber-related litigation.
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If reinsurers prevail in limiting insurers from aggregating BI claims, this will shield retro markets.
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The multidistrict litigation panel is expected to reach a decision by early next week.
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Financial Services Director General John Berrigan wants to establish a new working group which will report back with proposals in the first quarter.
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The latest estimate is marginally below a previously disclosed $75mn UK BI claims cap.
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The Swiss carrier says any increase in P&C claims arising from the ruling won’t materially impact its earlier assessment of $750mn in Covid-19 claims.
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The insurer could have total gross losses of more than EUR500mn, according to a French publication.
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The estimate fell below the midpoint of Hiscox's prior modelled BI loss range.
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Reinsurance recoveries and a drop in overall claims will offset the BI loss hike.
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A New South Wales Supreme Court judge gives the go-ahead for the hearing to start on 2 October.
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Nearly 1,000 insurance disputes over pandemic coverage were filed by the end of July, according to data highlighted by sister title Inside P&C.
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The research firm says the pandemic will become the leading example of “silent” coverage uncertainty.
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Earlier this month, we recapped some of the issues causing rising tensions in the retro market, where providers are pushing for release of capital trapped in connection to Covid-19 claims.
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State Farm policies in question contain a virus exclusion, protecting the insurer from liability.
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The UK insurer has exposure to BI losses through a Canadian dentistry book.
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The retro vehicle has only picked up a small share so far but this will grow.
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With the fundraising season approaching, tensions are rising over several points of dispute.
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The law firm representing customer action groups claims brokers discouraged policyholders from lodging Covid-19 claims.
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The judges will now consider their verdicts, with an ambition to produce a draft judgement in mid-September.
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An unspecified superior court will hear the ICA-funded case, with the outcomes used by the Australian financial ombudsman.
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The (re)insurance supervisor calls for “skin in the game” from all risk owners to reduce the risk of moral hazard arising from any state backstop.
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In a joint defence, eight carriers in the High Court case reject FCA’s interpretation of proximate cause.
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The regulator says that the losses were caused by a “jigsaw” of events that should be considered as a whole.
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Insurance bodies including APCIA and NAMIC strongly oppose the draft legislation.
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Property BI claims appear well below treaty reinsurance triggers.
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The insurance industry's early victory could set a precedent for the many pandemic-related disputes in train.
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The FCA test case for Covid BI claims could have huge implications for insurers.
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To what extent does the business opportunity for new start-ups rely on BI losses that the industry is vigorously rebutting?
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As many parts of the world start to emerge from lockdown, potential Covid-19 BI claims are yet to be tested.
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A Hiscox group is seeking £52mn while lawyers for a QBE group action have secured funding.
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The late July High Court hearing will also involve Arch, Argenta and QBE.
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The risk of insurers having to make partial upfront payments up is likely to be highest in Continental Europe, Philip Kett adds.
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The CIAB’s latest market survey also found carriers pushing for higher deductibles.
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The insurer has a $75mn retention in place under its treaty.
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The carrier has said it will appeal the court’s decision as it remains convinced the policy doesn’t cover such a claim.
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The scheme could see claimants in different sectors offered pence per pound of limit purchased.
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Collateralised re and sidecars are more likely to become subject to legal disputes around wording, the agency said.
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The carrier is one of a few that offers affirmative BI cover.
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The carrier’s P&C division could miss its 2020 operating profit target by 20 percent, CFO Giulio Terzariol said today.
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Major cat reinsurance losses are unlikely without over-reaching judicial action, the HSCM Bermuda leader argued.
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The “magnitude” of claims could ease in future quarters, Argo CEO Kevin Rehnberg said.
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A judicial panel will decide whether federal cases should be combined into a single multi-district lawsuit.
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The ILS market is among the leaders in holding firm on exclusions.
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An analyst said the fundraise offered investors “a secure balance sheet” at an attractive valuation.
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The insurer reserved an estimated £17mn for certain BI claims in Q1.
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The carrier expects event cancellation losses from Covid-19 in the “mid-triple-digit-million euros”.
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The new bill has a narrower scope than some previously proposed legislation, specifically targeting property, all risks and contingent BI policies.
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Some believe US insureds could use the case to argue for BI coverage, but physical damage requirements are a strong defence for the industry.
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The Covid-19 impact on Swiss Re year-end shareholders' equity was 1.63 percent and on Lancashire’s 2.9 percent.
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Retro deals are seen as a particular concern over growing fears that trapped capital will again be an issue in 2021, as post-2017 innovations will be tested out.
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The broker's total insured loss estimate spanned $11bn to $140bn, depending on the recovery from Covid-19.
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The Markel co-CEO said the firm was warehousing retro risk until it raised capital for new platform Lodgepine.
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Physical damage requirements should protect the carrier, it argued.
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BI may seep into some reinsurance and retrocession covers but insurers will take the biggest hit, said the head of ILS at Schroders.
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A trade body said the US legislation, if passed, would threaten the very existence of the business interruption insurance market.
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More than 260 small businesses are reportedly taking action against the carrier.
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About 75 percent of this figure is expected to come from BI losses.
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The company previously pegged losses from the pandemic at between $20bn and $40bn.
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Willis Re president Andrew Newman said capital will continue to flow into insurance if adequate returns are on offer.
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The broker said Covid-19 industry claims should be manageable but the disaster makes a broader capacity squeeze more likely.
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Reinsurance cover may be triggered and losses could end up significantly higher, estimates suggest.
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The Starr CEO has hit back at moves to retroactively force insurers to accept coronavirus-related BI claims.
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The insurer's Q1 net profit fell 25 percent to $600mn as cat losses were almost double those of Q1 2019.
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The group aims to improve the industry’s resilience to future pandemics.
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The decision comes as Lloyd’s and other insurers are named in a coronavirus class action lawsuit by restaurateurs and bar owners.
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Evan Greenberg is the only (re)insurance industry representative on the list of 200 executives who will advise on ending lockdowns.
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The insurer highlighted its reinsurance cover in place as it downplayed the scope of BI exposure.
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The regulator issued a notice after receiving complaints about insurers trying to dissuade policyholders from filing claims.
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John Neal said losses would be significant, but not unmanageable.
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The move highlights fears over pandemic exposure in Canadian property books.
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Insurance capacity is limited for pandemics, said Swiss Re’s Edouard Schmid.
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The Axa CEO said the initiative could be owned 50:50 by governments and private insurers.
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Other US states have proposed similar legislation, as lawmakers explore options to keep businesses afloat.
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Social inflation trends will make BI disputes particularly acute in the US.
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Ohio and Massachusetts lawmakers propose re-writing business interruption policies to include coronavirus losses.
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The backstop is just one of many ideas being floated, as governments and insurers look to improve preparedness.
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