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International News

Munich Re to no longer cover events cancelled for pandemics

The world’s largest resinsurer is making the change after it faced large losses this year in the wake of the coronavirus crisis.

Torsten Jeworrek, who oversees the reinsurance segment, said that Munich Re would remain in the business but that the tweak in its strategy was a result of the pandemic. The resinsurer will also adjust prices for event cancellation coverage, he said.

The cancellation and postponement of sports events like the Olympics in Tokyo as well as concerts have been a major burden for Munich Re, which expects a total of 4 billion euros ($4.85 billion) in COVID-related losses.

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Get used to limited access, EU tells City of London bankers & insurers

Brexit makes it “even more urgent” for the EU to develop its own capital market to cut reliance on the City of London, Europe’s biggest financial centre, Mairead McGuinness said.

Britain’s full access to the EU ends on Dec. 31 when a transition period that followed Brexit in January expires.
Many banks, asset managers and insurers in London have opened hubs in the bloc to avoid disruption to clients from limited direct access from the UK.

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France to help farmers to abandon glyphosate weedkiller developed by Bayer’s Monsanto

Glyphosate, first developed by Bayer’s Monsanto under the Roundup brand, has generated intense global debate over its safety since a World Health Organization agency concluded in 2015 that it probably causes cancer.

While regulators worldwide have determined glyphosate to be safe, Bayer agreed in June to settle nearly 100,000 U.S. lawsuits for $10.9 billion, denying claims that Roundup caused cancer.

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Global reinsurance market outlook stable, reinsurance capital exceeds $470 billion in 2020:AM Best

In its new Best’s Market Segment Report, “Market Segment Outlook: Global Reinsurance,” AM Best states that the current market hardening likely will need to continue for at least a couple of years to have a meaningful impact on the segment. Additionally, pricing momentum will have to be sufficient to offset losses from previous years, including the impact of COVID-19 and ongoing impact from social inflation.

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Kia Motors recalling 295,000 vehicles due to risk of engine fires

Last week, the National Highway Traffic Safety Administration announced that Kia and Hyundai must pay USD 137 million in fines and for safety improvements because they moved too slowly to recall more than 1 million vehicles with engines that can fail.

The fines resolve a three-year government probe into the companies’ behavior involving recalls of multiple models dating to the 2011 model year.

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Cyber insurance shifting into personal lines as consumer interest rises in UK:GlobalData

Daniel Pearce, Senior Insurance Analyst at GlobalData, comments: “The need for cyber insurance policies has long been identified in the commercial space, where reliance on technology for day-to-day business activities has grown at an exponential rate. However, individuals have also become increasingly dependent on technology. With their exposure to cyber risks growing, the personal cyber insurance market is burgeoning.”

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German prosecutors probe EY auditors over Wirecard collapse

EY said on Friday that “it is not aware of any indications of criminal behaviour by its auditors at Wirecard. EY has supported the investigations of the responsible authorities from the outset and will continue to do so in full.”

Wirecard collapsed into insolvency in June after EY, its auditor for more than a decade, was unable to confirm the existence of 1.9 billion euros ($2.3 billion) purportedly held in offshore trustee accounts.

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