Insurance news – week commencing 05/06/22

week commencing 05/06/22:

The green energy sector has more capacity than it knows what to do with, while insurers are tearing up exclusions to win business. What a shame that the same cannot be said for the cyber market, which is continuing to tussle over war clauses.

T&Cs don’t apply

A surge of insurance capacity into the green energy sector and competition to gain a foothold in the market is driving risk carriers to row back on wordings and offer broad terms and conditions.  [Insurance Insider] External-link

Risk managers feel unprotected

Ahead of its conference in Liverpool this week, Airmic CEO Julia Graham argued that the insurance industry was not offering products that addressed the systemic risks faced by businesses today.  [The Insurer] External-link

Running aground

As many as 15 ships stuck in Ukraine could be declared constructive total losses, resulting in millions of pounds of losses, if the war does not end before August.  [Lloyd’s List] External-link

Cyber war clause of concern

The LMA’s model cyber war exclusion clauses, published last December, have not been widely adopted. Both brokers and buyers are unhappy as they introduce a number of untested new concepts, making it unclear what is excluded.  [Commercial Risk] External-link

From Russia with losses

Allianz will take a €400m hit by selling a majority stake in its Russian operations as it scales back its business in Russia in response to the invasion of Ukraine. It will maintain a minority 49.9% stake in its Russian operations.  [CityAM] External-link

Good year for brokers

Consultancy Insuramore’s annual broker rankings found that the value of worldwide insurance broking rose by 12.5% in 2021 to $137.6bn. The top 20 brokers recorded aggregate growth of 14.6% driven by increased M&A activity.  [Insurance Edge] External-link

High praise for ABI

In a recorded message, the Prince of Wales praised the Association of British Insurers’ (ABI) work to help the insurance industry achieve net zero and called on its members to take action through the ABI’s four-step roadmap.  [Insurance Business] External-link

Inflation rings change

This week sees the 40th anniversary of the introduction of the 20p coin, which in isolation isn’t that interesting. However, research has found that a 20p coin in 1982 would now have the purchasing power of just 5p – a depressing insight into what inflation is doing to our savings. Janus Henderson, a City fund manager, has unsurprisingly recommended that people invest in the stock market instead of cash savings accounts.  [Evening Standard] External-link

Luther’s Airmic conference report

Three big themes emerged from this week’s AIRMIC conference in Liverpool. First, meeting people face-to-face is back. There was a palpable sense of excitement among delegates at simply being able to meet and chat with contacts, catch up on what’s been happening and make plans. The energy levels were high. While many had attended last October’s AIRMIC event, this felt like the real thing. Second, change is in the air. For many client businesses who’ve spent the last two years in crisis mode, now is the time to review insurance programmes and reconsider broker relationships. Risk managers are clearly catching up on the tasks they previously put on hold. Finally, on a sartorial note, ties for men were well and truly out. The open collar was king of Airmic 2022.

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