Insurance news – week commencing 10/07/22

week commencing 10/07/22:

There can’t have been many people expecting insurance regulation reform to become a key issue in the Tory leadership race, but insurers will likely take it as a positive sign. Meanwhile, One Lime Street looks set to remain Lloyd’s home for a long while yet.

Insurers need flexible models

The Bank of England has warned insurers that their models are inadequate for calculating climate risk. According to the bank, many models used by firms did not consider the impact of increased flooding or storm surges. External-link. [Insurance Day]

Lloyd’s should remain wary

Gallagher Re’s Lloyd’s of London Market Report found that the market is on a positive trajectory, with efforts to improve its credibility bearing fruit. However, it warned external factors could dampen or reverse this trend. External-link. [Insurance Business]

Twitter keeps directors twitchy

Rate rises in the D&O market slowed again in Q2 2022, suggesting that the hard market has reached its peak. However, insurers continue to see challenges, such as the speed with which social media allows negative stories to spread. External-link. [Insurance Day]

Tory capital issue

Solvency II is an unlikely area of focus in the Conservative leadership race, with runners pledging to rapidly reform rules inherited from the EU. The FT warns that political expediency should not come ahead of sound regulation. External-link. [Financial Times]

Covéa’s new partner

Insurer Covéa has completed its acquisition of PartnerRe for $9.3bn, which was initially delayed by the pandemic. Thierry Derez, Covéa’s CEO, said the deal would allow the insurer to ‘keep apace’ with a changing global insurance market. External-link. [Reinsurance News]

Sacré bleu

An unprecedented series of storms that has battered France since May has resulted in over one million claims, and will cost French insurers almost €4bn. External-link[Yahoo!]

Cyber-attack tough to swallow

Hacking group Predatory Swallow has claimed responsibility for a cyber-attack on an Iranian steelmaker which caused a fire and physical damage. Some wonder whether the group acts alone or is organised and regulated by a state. External-link. [BBC News]

Food recall leaves bitter taste

Recent recalls of peanut butter and baby formula in the US have led to concerns that the food contamination insurance market could harden. Many expect a rise in claims as federal plant inspections increase post-pandemic. External-link. [Business Insurance]

Real growth at a premium

Swiss Re Institute’s latest Sigma forecast predicts that a slowing global economy and rising inflation will depress total real-terms premium growth over the next two years. External-link. [Strategic Risk]

A tale of the City

It’s been the ultimate will-they-won’t-they? story of recent months, keeping Leadenhall publicans glued to the insurance press, anxious to find out what the future holds. At last, they can let out a sigh of relief, as Lloyd’s has announced that it plans to extend its lease for One Lime Street. It’s in this for the long-haul. External-link. [Evening Standard]

External-link. External links are being provided as a convenience to relevant content; they do not constitute an endorsement or an approval by Luther Pendragon of any of the services or opinions of external content. Luther Pendragon is not responsible for the accuracy, legality or content of these external sites. Please also note that some external content may require a subscription to view.