Category:

Reinsurance

Climate change drives $268 bn global damage from 2020 natural disasters with 64% uninsured:Aon report

“When Natural Disasters and a Pandemic Collide” global annual report explores “connected extremes”

Asia recorded $95 billion in economic damage from natural disasters in 2020. Just 9% was insured; which means the protection gap was 91% further highlighting protection gap vulnerabilities in 2020

read more

Pay business insurance claims or face enforcement, UK watchdog says

“Where we see that insurers are not meeting the expectations set out here, we will use the full range of our regulatory tools and powers to ensure they do so,” the FCA’s executive director for consumers and competition Sheldon Mills said in a letter to insurers’ chief executives.

The watchdog brought the test case on behalf of policyholders last June, saying it could affect 370,000 policyholders and 60 insurers, paving the way for an estimated 1.2 billion pounds ($1.6 billion) of claims.

read more

Japan coronavirus vaccination uncertainty casts doubts over Olympics

Many Japanese have a vague unease about vaccines, said Dr. Takashi Nakano, a Kawasaki Medical School professor and vaccine expert. If something (negative) happens after inoculation, people tend to think it’s because of the vaccine, and that’s the image stuck in their mind for a long time.

The history of vaccine mistrust in Japan dates back to 1948, when dozens of babies died after getting a faulty diphtheria vaccine. In 1989, cases of aseptic meningitis in children who received a combined vaccination for measles, mumps and rubella, or MMR, prompted lawsuits against the government, forcing it to scrap the mix four years later.

read more

“Reputational risks could result in potentially crippling business outcomes” :Willis Towers Watson Survey

Scott Burnett, Head of Corporate Risk & Broking Asia and Head of Asia, Willis Towers Watson, said “Loss of income and reduced customer bases are usually the main issues that businesses face following reputational damage. However, the impact of reputational damage can be felt across a business, from recruitment and retention of talent to lower environmental, social and governance (ESG) score, investor activism and increased industry litigation. Reputational risk is therefore increasingly of concern to our clients with most Risk Mangers now having some responsibility for risk mitigation in this area.

read more

Growth in health and protection biz to soften Covid-19 economic pressures on Indian insurers:Moody’s 

“Resilient sales of health and protection policies reflects rising consumer awareness of these products during the coronavirus pandemic, as well regulator’s actions enabling insurers to offer protection against the virus. Indian insurers have also rapidly developed their digital offering during the pandemic.Over the longer term we expect the industry to benefit as the government injects capital into publicly owned insurers, and as private insurers reinforce their solvency through a combination of capital raising and M&A, said Moody’s analysis on Indian insurance sector.

read more

Allianz Risk Barometer 2021: Covid-19 trio tops global and Asia Pacific business risks

“The Allianz Risk Barometer 2021 is clearly dominated by the Covid-19 trio of risks. Business interruption, pandemic and cyber are strongly interlinked, demonstrating the growing vulnerabilities of our highly globalized and connected world,” says Joachim Müller, CEO of AGCS.

“The coronavirus pandemic is a reminder that risk management and business continuity management need to further evolve in order to help businesses prepare for, and survive, extreme events. While the pandemic continues to have a firm grip on countries around the world, we also have to ready ourselves for more frequent extreme scenarios, such as a global-scale cloud outage or cyber-attack, natural disasters driven by climate change or even another disease outbreak,” he said.

read more

Insurers expect to settle over £1.8bn in Covid-19 related UK claims including BI policies

Today’s ruling had other bad news for insurers. Under the original judgement, cover for BI losses due to business closures during lockdown would have been based on a strict definition of lockdown, when closures were mandatory. The Court decided that this interpretation was too narrow and that cover should include closure instructions from a public authority, even if not backed by the force of law.
Customers who have made claims that are affected by the test case will be contacted by their insurer to discuss what the judgment means for their claim. All valid claims will be settled as soon as possible and in many cases the process of settling claims has begun, said UK’s Association of British Insurers.

read more

UK Supreme Court hands businesses victory in COVID-19 insurance ruling

Six of the world’s largest commercial insurers — Hiscox, RSA, QBE, Argenta, Arch and MS Amlin — said many business interruption policies did not cover widespread disruption after Britain’s first national lockdown last March.

But senior judges said payouts should be triggered after scrutinising 14 non-damage insurance policy clauses — which cover disease, denial of access to business premises and hybrid clauses — in a resounding victory for policyholders and the regulator.

read more