Reinsurance News
business interruption
ICA welcomes Federal Court’s BI judgment
21st February 2022
The Insurance Council of Australia (ICA) has welcomed the Federal Court of Australia’s ruling in the appeals in the second business interruption test case, although appeals were filed in respect of five of the ten test case matters. The ruling substantially upheld the earlier Federal Court judgment delivered in October 2021. ... Read the full article
FBD reaches agreement with reinsurers on COVID-19 BI recoveries
31st January 2022
FBD Insurance has now reached an agreement with reinsurers on how recoveries will operate relating to COVID-19 business interruption (BI) claims from public house customers. As we wrote last year, the Irish High Court previously ruled that FBD Insurance must compensate four pub owners for the disruption caused to their ... Read the full article
Shanghai port disruption a BI concern for re/insurers: Russell Group
21st January 2022
Analysis by risk management organization Russell Group shows that current port congestion at Shanghai is costing an estimated $4.5 billion a week in lost trade, opening the door to both supply chain and business interruption risks. The firm says this is a “clear worry” both for insurers and reinsurers, who could ... Read the full article
BI test case payouts approach £1.3bn at one-year mark: FCA
20th January 2022
New data from the Financial Conduct Authority (FCA) shows that the total reported claims payments for policies related to the COVID-19 business interruption (BI) test case in the UK are now approaching £1.3 billion, 12 months on from the Supreme Court's final ruling on the case. The data shows that, as ... Read the full article
COVID-19 BI appeals to be heard from November 8
22nd October 2021
Policyholders and insurers have filed claims on a number of issues arising from the recent judgment delivered by the Federal Court of Australia in the business interruption insurance test case. The appeal is listed to be heard from 8 November 2021. The Federal Court judgment recently upheld the arguments advanced by ... Read the full article
Two-thirds of BI test case policyholders now paid: FCA
18th October 2021
New data from the Financial Conduct Authority (FCA) shows that 68.4%, or just over two-thirds, of UK policyholders whose COVID-19 business interruption (BI) policies have been accepted by insurers have now recieved at least an interim payment. As of October 5th, the aggregate value of the payments made for the 24,463 ... Read the full article
Despite improvements, COVID-related BI & cat losses a challenge for reinsurers: DBRS
5th October 2021
In the first half of 2021, major property and casualty (P&C) reinsurers were on track for a record year, but despite the improved performance, analysts at DBRS warn of uncertainty around pandemic-related business interruption (BI) losses and the impacts of natural catastrophes. Estimated global insured catastrophe losses stood at $42 billion ... Read the full article
BI test case payouts top £1bn with 64% of policyholders paid: FCA
17th September 2021
New data from the Financial Conduct Authority (FCA) shows that total reported claims payments for policies related to the COVID-19 business interruption (BI) test case in the UK have now exceeded £1 billion. The aggregate value of the payments made for the 22,680 claims where final settlements have been agreed and ... Read the full article
Second BI test case in Australia delayed as policyholders need more time: ICA
24th August 2021
The Federal Court of Australia has postponed the start of the second business interruption (BI) test case hearing by one week to provide policyholders with more time to obtain verified government data and expert evidence concerning COVID-19 outbreaks, notes the Insurance Council of Australia (ICA). It was announced earlier this ... Read the full article
BI test case payouts approach £1bn: FCA
17th August 2021
New data from the Financial Conduct Authority (FCA) shows that total reported claims payments for policies related to the COVID-19 business interruption (BI) test case in the UK are now approaching £1 billion. The aggregate value of the payments made for the 21,198 claims where final settlements have been agreed and ... Read the full article
Hiscox reaches settlement with BI action group
28th June 2021
Specialist global insurer Hiscox has reached a settlement with members of the Hiscox Action Group (HAG) over business interruption (BI) losses suffered due to government lockdowns following the outbreak of COVID-19. Terms of the settlement remain confidential, but HAG had originally been targeting a £40 million payout from Hiscox, after ... Read the full article
Proposed AXA settlement would reduce BI uncertainty: Moody’s
11th June 2021
AXA France's proposed €300 million settlement offer to thousands of restaurant clients who hold non-damage business interruption (BI) policies would reduce the uncertainty related to the ultimate financial burden of COVID-19 BI claims, says Moody's analyst Benjamin Serra. Yesterday, global insurance company AXA announced a proposal to settle with 15,000 ... Read the full article
AXA in €300mn settlement offer to 15,000 restaurant clients over COVID claims
10th June 2021
AXA France has today announced a settlement offer of €300 million, gross of tax and before reinsurance, to 15,000 restaurant owners who hold non-damage business interruption (BI) policies. The settlement applies to the 15,000 restaurant owners who hold AXA France's "standard policy" with extended cover for BI losses linked to administrative ... Read the full article
BI test case pay-outs pass £700m: FCA
12th May 2021
New data from the Financial Conduct Authority (FCA) shows that to date more than £700 million has been paid out for claims related to the COVID-19 business interruption (BI) test case in the UK. This represents an increase of more than £100 million on the £600 million that the FCA recorded ... Read the full article
BI test case pay-outs at £600m, but major insurers still lagging: FCA
14th April 2021
New data from the Financial Conduct Authority (FCA) shows that to date £600 million has been paid out for claims related to the COVID-19 business interruption (BI) test case in the UK. This represents an increase of 25.5% from the £478 million in pay-outs that the FCA recorded roughly one ... Read the full article
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