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Reinsurance

In the hands of God:’ Central America bears brunt of powerful hurricane Iota

About 40,000 people in Nicaragua have been evacuated to shelters, authorities said. Many coastal areas are at risk of storm surges of as much as 20 feet (6 meters) above normal tides. In Honduras, 80,000 people were moved to safety.

“It’s the strongest hurricane that has touched Nicaraguan soil since records began,” said Marcio Baca, director of the Nicaraguan Institute of Earth Studies.

This is the first time two major hurricanes have formed in the Atlantic basin in November since records began in 1851.

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Insurers are trying to escape COVID-19 liability, watchdog tells UK Supreme Cour

A lawyer for the Financial Conduct Authority (FCA), which brought a test case against insurers on behalf of policyholders, said insurers had reached an “extraordinary conclusion” that business losses were largely uncovered during the coronavirus pandemic because of the widespread havoc it has caused.

“(Insurers) are saying: ‘We insure perils but not ones that are going to cost us a huge amount of money. We never contemplated that’. Well, that isn’t an answer,” Colin Edelman, the FCA’s lawyer, told the second day of a four-day appeal, watched by thousands of businesses brought to their knees during the pandemic.

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Munich Re and Porsche form JV, to offer innovative manufacturing, software and financial mangement expertise

Torsten Jeworrek, member of Munich Re’s Board of Managementsaid,“With the FlexFactory, we and our partners have created a future-oriented platform for opening up new markets, which addresses a central challenge of modern production. Our cooperation once again underlines Munich Re’s innovative power and solution competence as a risk manager and financing expert for Industry 4.0.”

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Annual global modeled insured average Cat losses in 2020 at $100 billion:AIR Worldwide

“The ability for the global (re)insurance industry, financial institutions, governments, and non-governmental organizations to prepare for large losses before they occur is critical to continued solvency and resilience,” said Rob Newbold, executive vice president at AIR Worldwide.

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Insurers cannot provide unlimited cover in pandemic, UK Supreme Court told

The case revolves around whether 21 policy wordings, affecting potentially 700 types of policies, 60 insurers, 370,000 policyholders and billions of pounds in claims, should cover disruption caused by the virus.

The wordings cover business interruption when insured premises cannot be accessed because of public authority restrictions, in the event of a notifiable disease within a specified radius and hybrid wordings.

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Philippines logs 100 deaths, P25 billion losses from recent storms

The National Disaster Risk Reduction and Managent Council said it has asked President Rodrigo Duterte to declare a state of calamity in the country’s largest island Luzon, home to 53 million people.

The proposal – which will be in addition to an existing state of calamity over the COVID-19 pandemic – allows faster release of calamity funds, the grant of interest-free loans and freezing of prices of basic commodities.

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Bank of England warns insurers risk unexpected COVID losses

“Our work has highlighted that a number of firms have not been able to accurately identify and track COVID exposed policies, leading to unexpected COVID losses,” the BoE said in a letter to insurers.

“Firms should ensure that this uncertainty is reflected in the reserve estimates and that, where possible, appropriate procedures are put in place to identify and track exposed policies.”

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