Reinsurance News
business interruption
FCA’s legal action will provide a “clear line” to resolve BI claims: CEO Woolard
11th June 2020
The Financial Conduct Authority’s (FCA) efforts to obtain legal clarity on business interruption (BI) policies connected to the COVID-19 pandemic will provide a “clear line” to resolve which claims are valid and which aren’t, according to Interim CEO Chris Woolard. Speaking as part of the Inside FCA Podcast, Woolard argued that ... Read the full article
Insurers welcome FCA update on pandemic BI claims
1st June 2020
Zurich Insurance Group and RSA are among those to welcome the update from the Financial Conduct Authority (FCA) as the UK regulator seeks to obtain legal clarity on business interruption claims related to the COVID-19 pandemic. After consulting with 56 insurers over the past month, the FCA announced today that ... Read the full article
US riots could be a relatively meaningful man-made loss for insurers
1st June 2020
As nation-wide rioting continues in the US following the death of unarmed George Floyd in police custody in Minneapolis, comparisons with previous civil disorders in the country suggests it could be a relatively meaningful man-made loss for the re/insurance industry. The death of George Floyd last Monday resulted in peaceful protests ... Read the full article
UK regulator identifies disputable BI policy wordings
1st June 2020
As part of its effort to seek legal clarity on business interruption (BI) claims related to the COVID-19 pandemic, the Financial Conduct Authority (FCA) has identified a sample of policy wordings that are representative of the key arguable issues. The UK regulator announced on May 1st that it would seek ... Read the full article
Potential BI litigation enhances uncertainty for UK non-life carriers: Fitch
26th May 2020
Uncertainty remains for some UK non-life insurers amid concerns courts might rule in favour of claims in cases where business interruption (BI) policy wording is loose, warns Fitch Ratings. It's been well documented that, overall, BI losses as a result of the COVID-19 pandemic are expected to be manageable owing to ... Read the full article
Reinsurance will cap UK BI costs at $75mn, says QBE
26th May 2020
Australian insurer QBE has said that its reinsurance coverage should limit the costs of COVID-19 related business interruption (BI) claims to £75 million in the UK. However, the company maintained that its BI policies do not typically cover claims arising from COVID-19. “Many businesses are facing an extremely concerning time at present ... Read the full article
Forced BI claims would put “systemic strain” on the insurance industry: Triple-I CEO
22nd May 2020
The Chief Executive Officer (CEO) of the Insurance Information Institute (Triple-I), Sean Kevelighan, has warned that systematic strains would be placed on the insurance industry if carriers are forced to pay out retroactive claims. As the fallout surrounding business interruption (BI) insurance related to the COVID-19 pandemic has persisted, leaders from ... Read the full article
ABI rejects pub industry appeal for pandemic BI cover
22nd May 2020
In response to an open letter penned by a coalition of beer and pub businesses, the Association of British Insurers (ABI) has insisted that the UK re/insurance industry has no responsibility to pay business interruption (BI) claims related to the COVID-19 pandemic. The coalition letter, addressed to ABI Chair Jon Dye, ... Read the full article
FCA invites market participation to help resolve COVID-19 BI disputes
18th May 2020
The UK’s Financial Conduct Authority has begun seeking input from insurers and brokers to help address and understand ongoing contractual issues surrounding coronavirus-related business interruption cover. The regulator said earlier this month that it was seeking a court declaration to help resolve the wide-ranging issue. As was noted at the time, ... Read the full article
US Treasury opposes retroactive BI legislation
12th May 2020
The US Treasury Department has penned a letter to lawmakers voicing its opposition to legislation that would force insurers to retroactively cover business interruption (BI) claims connected to the COVID-19 pandemic. In the letter, Treasury Principal Deputy Assistant Secretary Frederick Vaughan criticised bills introduced by several states that aim to make ... Read the full article
Global organisations reiterate potential harm of forced COVID-19 BI coverage
12th May 2020
As more and more international organisations underscore the potential negative ramifications of forcing insurers to retroactively cover COVID-19 related business interruption (BI) claims, the President and Chief Executive Officer (CEO) of the American Property Casualty Insurance Association (APCIA), David Sampson, has again highlighted the importance of stability in the marketplace. As ... Read the full article
FERMA taskforce to address BI coverage for cat risks
7th May 2020
The Federation of European Risk Management Associations (FERMA) has announced the launch of a taskforce to create proposals to address the issue of business interruption coverage for catastrophic risks. “Our aim is to support the creation of economies that are resilient in the face of systemic and catastrophe risks,” said the ... Read the full article
UK regulator to seek legal clarity on BI policies
1st May 2020
The Financial Conduct Authority (FCA) has announced that it intends to obtain a court declaration to resolve contractual uncertainty in business interruption (BI) insurance cover relating to the coronavirus pandemic. The UK regulator assured that the process would be undertaken in an “urgent manner,” despite saying last month that most ... Read the full article
RIMS presses Congress over pandemic risk insurance backstop
22nd April 2020
The risk management society (RIMS) has called for the establishment of a pandemic risk insurance program in the U.S. to accelerate economic recovery to the ongoing COVID-19 pandemic. As the virus continues to spread the volatile and uncertain financial market environment and subsequent recessionary risks have intensified on a global basis. Currently, ... Read the full article
Hiscox sees Covid-19-related business interruption exposure as limited
16th April 2020
Insurer and reinsurer Hiscox expects its exposure to any business interruption losses from the COVID-19 pandemic to be limited, while its Retail segment makes use of significant levels of reinsurance protection. The re/insurer has released a statement explaining that its core policy wordings do not provide coverage for BI as a ... Read the full article
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