Inside FAC June 2020
The directors’ and officers’ and contingency classes are good indicators of how varied the experience of markets has been in the face of the economic downturn and now a global pandemic.
Companies seeking to renew directors’ and officers’ (D&O) cover are said to be facing drastically increased retentions and continued exclusionary language as the market tightens terms and conditions.
Insurance coverage for promotional activities has seen a marked increase in activity, driving hopes that the contingency market could begin to emerge from its Covid-19 slump later this year.
With businesses everywhere focused on how to stay afloat amid a global pandemic the issue of securing certain types of insurance coverage has become a vexed one.
Miller’s Michael Papworth remains a fac broker at heart and is bullish about the future of fac in today’s reinsurance market
German cedants are increasingly looking to facultative reinsurance as a more reliable way of easing the loss burden, writes Helen Yates
The coronavirus pandemic has caused the sharpest economic downturn in living memory, prompting governments to backstop the trade credit market against systemic risk. David Benyon reports
Antares Underwriting, the Lloyd’s carrier owned by QIC Global, has pulled out of property direct and facultative (D&F) and aviation business, following a “strategic review”.
Insurers including Hiscox, MS Amlin and QBE will participate in a High Court test case brought by the UK’s Financial Conduct Authority (FCA) intended to bring clarity to BI insurance wordings.
More than 20 insurers and two industry associations have submitted legal briefs opposing the consolidation of coronavirus-related business interruption (BI) lawsuits in the US.
Lawyers acting on behalf of the Hiscox Action Group (HAG) have written to Hiscox Insurance, seeking a £52mn ($65.7mn) payout for business interruption (BI) losses related to the Covid-19 lockdown.
Axa has cut its dividend to shareholders by EUR0.70 per share, as it revealed an anticipated EUR1.2bn hit to its P&C result due to Covid-19 related losses, post-tax and net of reinsurance.
UK insurer Aviva has estimated its exposure to global business interruption (BI) claims as a result of the Covid-19 pandemic at £200mn ($248mn), net of reinsurance.
The global property insurance market is anticipating potentially significant losses from the widespread protests that followed the death of George Floyd in Minneapolis nearly three weeks ago.
Commercial property losses from the floods in Midland County, Michigan are likely to be heavily weighted towards small and medium-sized businesses.
Severe weather across a number of US states in May caused at least $1.38bn of insured losses, with hundreds of millions more anticipated, according to Aon’s May Global Catastrophe Recap.
FM Global had been advised of $410mn of coronavirus claims by clients, as of the middle of May.
Insured losses from US convective storms have already exceeded $13bn this year, according to Aon’s Impact Forecasting division.
The Insurance Council of Australia has estimated insured losses from storms and bushfires over the Australian summer at A$5.1bn ($3.4bn).
Scor’s management board has proposed a suspension of the company’s 2019 dividend as it seeks to conserve capital following the impact of the Covid-19 pandemic.
The impact of pandemic-related losses, lower investment returns and capital markets volatility is likely to prevent the global reinsurance sector from meeting 2020 earnings expectations.
Arch Insurance International has appointed Simon Williams as active underwriter for Syndicate 1955 and confirmed David Slade as deputy active underwriter of the syndicate.
Karen Ellis has joined Gallagher’s specialty division as head of its sports practice from motorsports broker Ellis Clowes.