Insurance news – week commencing 14/11/21

week commencing 14/11/21:

The fate of the Lloyd’s underwriting room – both real and digital – is hanging in the balance this week, while here  at Luther Towers, we’re looking forward to telling our grandchildren about “The Great Resignation”.

Case is closed

The Federal Court of Australia has stopped hearing appeals against its second Covid-19 business interruption test case, in which the court sided with insurers. The court’s decision is expected just before the turn of the year. External-link. [Insurance Business]

Lloyd’s has left the building?

Lloyd’s is carefully considering its future in One Lime Street, because the future of the underwriting room remains unclear. The Corporation is worried that hybrid working may mean that the building becomes an anachronism. External-link. [Insurance Insider]. It has also announced the closure of the virtual underwriting room as brokers and underwriters return to EC3. External-link. [Insurance Day]

Big four going up

Europe’s four biggest reinsurers all saw their profits for the nine months go up compared to last year as an increasingly hard market more than compensates for high natural catastrophe losses. External-link. [Insurance Journal]

Directors feel the heat

A report by legal network GILC found that D&O prices are rising rapidly worldwide, in part because countries are increasingly likely to hold directors and officers to account for climate change due to poor environmental records. External-link. [Commercial Risk]

Tough climate for investment

Research by Blackrock has found that almost all insurers believe that over the next two years climate risk will have a significant impact on how portfolios are positioned. External-link. [Insurance Times]

Uninterrupted stream of claims

The FCA has revealed that insurers have paid out on 30,000 Covid-19 related business interruption claims, worth a total of £1.2 billion. Just under 26,000 of those claims were paid in full. External-link. [Insurance Day]

Waiting game

However, the FCA also found that 30 percent of businesses with valid claims for Covid-related disruption are still waiting for pay-outs. External-link. [Law360]

Inflation supplies hard market

Swiss Re has argued that supply chain issues and inflation remain the key risk factors for the global recovery from the Covid-19 pandemic, and that both will feed into a hardening insurance market. External-link. [Commercial Risk]

Will everyone pool together?

For a while, the idea of an all-encompassing risk pool backed by the government seemed to be a realistic possibility. That isn’t the case anymore, but smaller-scale schemes may be achievable. External-link. [InsuranceERM]

Resign to your fate

Randstad UK has found that two-thirds of workers are ready to quit. Remote working has reduced loyalty to current workplaces, and many are confident that the state of the job market means they’ll find something else quickly. External-link. [The Guardian]

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