Insurance news – week commencing 12/06/22

week commencing 12/06/22:

It looks like the current hard market is here to stay, especially given insurers’ concerns about inflation and growing geopolitical risk. Here at Luther Towers, we’re wondering what Mr Banks would make of a recent rendition of Mary Poppins on Lime Street.

War inflates resilience concerns

Beazley’s new Risk & Resilience Report on geopolitical risk found that many businesses feel under-equipped to handle the increasing threats from inflation and war and terror. It found economic uncertainty is up 31% on last year. External-link. [Insurance Edge]

InsurTech bedding in

InsurTechs are increasingly excited at the potential of ‘embedded insurance’, which allows products developed by insurers to be distributed through non-insurance channels, for example at the point of sale for consumer services. External-link. [The Insurer]

Howden off to a flyer

David Howden, CEO of the Howden Group, said that he was ‘on cloud nine’ after announcing the acquisition of TigerRisk Partners. The combined businesses will have a value of $13bn. External-link. [Insurance Business]

Lloyd’s turns a corner

For a year and a half, strategic buyers have shown little interest in acquiring Lloyd’s balance sheet businesses. However, with three businesses now mid-sales process, it’s possible we’ll start to see more M&A activity. External-link. [Insurance Insider]

Hard times ahead

Analysis from Goldman Sachs found that the insurance industry is in a hard market cycle that will continue into next year. It added that capital requirements from Solvency II were driving firms to focus on capital efficiency and returns. External-link. [Reinsurance News]

‘Perfect storm’ for FCA

The FCA is struggling to resolve its operational issues, responsible for delays in appointments and approvals. At the same time, the regulator is facing mounting criticism from Unite, with further strike action expected. External-link. [Insurance Insider]

Consumer lawsuits to rise

Claims expert Andreas Oevermann, senior claims adjuster at Newline Europe Versicherung, has warned that the new EU Class Actions Directive will lead to more consumer lawsuits and insurance claims. External-link. [Commercial Risk]

Two pints and $1.2bn

Britain’s biggest pub group, Stonegate, will sue Zurich and two other insurers for $1.2 billion over lockdown losses, potentially opening the door to a second wave of business interruption claims. External-link. [Insurance Journal]

Lloyd’s takes its medicine

Protestors targeted Lloyd’s this week with a Mary Poppins-themed flash mob, complete with a performance of ‘Let’s Go Fly a Kite’ – amended to ‘Let’s Make Insurance Right’. The protest group, The Mothers Rise Up, called on the industry to stop jeopardising children’s futures by underwriting fossil fuel projects. External-link. [Global Reinsurance]

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