Category:

Reinsurance

Coronavirus Pandemic: Short-term closure of plants or premises can pose risks for companies:AGCS Study

“We already see a number of losses that occur on holidays or weekends when employees are not largely present on sites or premises,” says Ralf Dumke, Regional Head of Risk Consulting Property, AGCS Central & Eastern Europe: “The production and operating shutdowns currently being caused by the coronavirus pandemic can also bring increasing hazards for businesses.

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IRDAI asks insurers to follow rules strictly in paying commissions to the intermediaries  

The board approved policy should stipulate the specific proportion of rewards to commission/remuneration which sholud be reasonable and justifiable, to individual insurance agent/insurance intermediary subject to the overall limit as specified in the existing regulations-Reg 6(d)(ii) and 6(e)(ii) of IRDAI (Payment of commission or remuneration or reward to insurance agents and insurance intermediaries) Regulations, 2016.

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Insurers fret as company bosses face coronavirus legal claims

“An uptick in litigation targeting directors and officers across industry sectors is one likely, and unwelcome, consequence” of the coronavirus pandemic, said James Whitaker, partner at law firm Mayer Brown.

“We are starting to see insurers looking at the potential for specific COVID-19 exclusions going forward,” said Beth Thurston, head of management liability, UK & Ireland, for broker Marsh.

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EU states step in where trade credit insurers fear to tread

Without insurance, companies can be reluctant to buy or sell goods or services to others, with a rise in insolvencies expected among European firms forced to halt operations due to lockdowns aimed at slowing the coronavirus pandemic’s spread.

Atradius, which like rivals Coface and Euler Hermes sells protection to companies against the risk of default by their customers, forecasts a 2.1% rise in insolvencies in western Europe this year, compared with a 0.2% fall in 2019.

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IRDA bans Capital Gearing treaties by insurers

Insurers who are having such treaties on their books as on the date of issuance of this circular shall take the following  steps-

 -Submit board approved action plan to the IRDAI on or before 30th June, 2020 for phasing out the treaties along with timelines such that it complies with the Solvency Stipulations. 

-The plan of action will also  include assessment of requirement of  capital infusion and sources of funds for the capital infusion so required due to prospective closure of these Capital Gearing treaties.

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