The International Underwriting Association (“IUA“) announced earlier this week that it is supporting calls to devise a government supported insurance solution for future pandemic events, known as “Pandemic Re”.… Continue Reading
In welcome news for businesses, HM Treasury has just confirmed that trade credit insurance schemes will receive up to £10 billion of Government guarantees.… Continue Reading
As we have reported previously, there are a number of action groups who are actively pursuing group claims against insurers. The groups argue that the insurers in question have unlawfully refused group members’ claims under their business interruption (“BI”) insurance policies.… Continue Reading
In previous blogs we have looked at the impact that COVID-19 was having on the availability of trade credit insurance and discussions around how Government might support this vital insurance market for companies at a time of crisis. This comes at a time when insurers are facing increased claims as a result of the pandemic … Continue Reading
On 1 May 2020, we reported on the Financial Conduct Authority (“FCA”) plans to take Court action seeking a declaration on an urgent basis to try and help resolve some of the ongoing uncertainties around the much-publicised issue of business interruption (“BI”) insurance coverage and how the insurance responds to COVID-19 related claims by insureds … Continue Reading
Earlier today, the FCA announced that it will ask the Court for a declaration on an urgent basis to try to help resolve the ongoing uncertainties around the much publicised issue of business interruption (“BI”) insurance coverage that we have written about in the past few weeks.… Continue Reading
Battle lines are drawn up in the insurance industry as it becomes apparent that insureds and their lawyers are preparing to contest in Court any refusals by insurers to pay out on claims for business interruption (“BI”) and associated losses in the wake of the Government’s COVID-19 lockdown. Group actions are apparently being brought together … Continue Reading
The Financial Conduct Authority (“FCA”) requires all regulated firms to take out and maintain professional indemnity insurance (“PII”) to cover the financial losses that may be suffered as a result of customer claims and complaints against the firm. The FCA also mandates limits of indemnity for the PII.… Continue Reading
Many of the ongoing disputes between insureds and insurers about the nature and extent of coverage provided by certain business interruption insurance policies for losses suffered in the wake of the pandemic now seems destined to end up before the Courts or the Financial Ombudsman Service.… Continue Reading
Christopher Woolard, interim chief executive at the FCA, has today sent a stark “Dear CEO” letter to UK insurers titled “Insuring SMEs: Business Interruption”.… Continue Reading
The FCA yesterday set out its business priorities for the years ahead, focussing in part on the unique challenges presented to the financial services industry by the Covid 19 pandemic. In this blog we look at three issues that the FCA’s Business Plan for 2020/21 pays special attention to, the regulatory response to the Covid-19 … Continue Reading
In a unanimous decision on 1 April 2020, the Supreme Court ruled that the Courts of England and Wales do not have jurisdiction to hear a claim against a Turkish shipping company’s bank, to recover sums the insurer paid out for a cargo ship that was later determined to have been deliberately sunk (scuttled) by … Continue Reading
Credit rating agency, Fitch Ratings (“Fitch“), has revised its outlook for the underlying fundamentals of the London insurance sector from stable to negative.… Continue Reading
Travel insurers in Britain could be hit with a record-breaking estimate of at least £275 million in claims over the Coronavirus outbreak.… Continue Reading
According to UK insurer, Direct Line, the cost of Coronavirus-related travel insurance claims rose from £1 million to £5 million in less than two weeks between March 3 and March 15 2020, as the UK government advised against non-essential international travel.… Continue Reading
As one floor closes another (virtual) one opens; 330-year-old specialist insurance market Lloyd’s of London (“Lloyd’s“) has closed its underwriting floors in response to Government guidance regarding the coronavirus pandemic. Last week, the world’s largest insurance hub replaced its four-story “underwriting room” with its electronic trading system, Placing Platform Ltd (“PPL“), which was successfully stress … Continue Reading
The UK’s Financial Conduct Authority (“FCA“) warned the insurance market at the end of last week that it must be flexible with customers amidst the COVID-19 pandemic.… Continue Reading
Chancellor Rishi Sunak last night sought to provide some certainty for those businesses worried about their business interruption (“BI“) insurance.… Continue Reading
Last week we blogged about the need for businesses to check their business interruption (“BI“) insurance policies as the Coronavirus crisis continued to bite.… Continue Reading
As the World Health Organisation announced the Coronavirus is now a pandemic, meaning it is spreading in multiple countries at the same time, UK insurers have begun restricting the cover of travel insurance, or have stopped selling policies outright.… Continue Reading
Earlier this week we looked at the effect that Coronavirus may be having on events cancellation, travel and personal accident insurances. However, businesses should now consult with their professional advisers and insurance managers over the extent of the wider insurance programme that they might have in place to cover other financial losses caused or contributed … Continue Reading
Last week, the insurer Hiscox confirmed that it has begun to receive notifications of coronavirus related claims. Hiscox has said that it is still too early for it to determine the potential impact of the virus on its business. However, it cites events cancellations, travel and personal accident cover as the main areas of its … Continue Reading
