week commencing 15/03/20:

The unprecedented COVID 19 developments this week have occurred at a speed it has been hard to comprehend. Here is our selection of some of the key stories from the insurance industry.

Mactavish warns COVID 19 will hit harder than 9/11

A combination of investment losses from the recent market turmoil and the impact of COVID 19 claims could harden the market and result in covers being withdrawn and more exclusions being put in place, according to a report by Mactavish. External-link. [Commercial Risk Online]

Industry’s reputation on the line

With insurers looking set to play a limited role in compensating those financially impacted by COVID 19, the industry could be facing considerable reputational damage. External-link. [Insurance Day]

Lloyd’s closes underwriting room

Lloyd’s closed its historic underwriting room this week in reaction to government advice on COVID 19.  The move will see the Lloyd’s market reliant on previously optional electronic placement systems while the physical space remains shut. External-link. [Reactions]

LMA sets out clause for coronavirus continuity of coverage

The Lloyd’s Market Association has published policy language designed to ensure customers’ coverage continues beyond a specified renewal date. The clause is intended to be used in cases where COVID 19 makes renewal negotiations untenable. External-link. [Reactions]

Event cancellation losses from coronavirus could hit $8bn

UBS has estimated that the total event cancellation exposure for the global insurance market could be over $8bn. External-link. [Insurance Day]

RIMS 2020 cancelled

For the first time in its history the 2020 RIMS event is to be cancelled due to COVID 19. External-link. [Reactions]

John Hancock to delay departure from Lloyd’s

The Lloyd’s Performance Director has announced that he will put off his departure to AIG for at least two months to help Lloyd’s tackle the fallout from the COVID 19 crisis. External-link. [Insurance Insider]

‘Big four’ reinsurers estimate COVID losses

The four largest reinsurers in Europe have begun to estimate elements of their non-life costs from the COVID 19 pandemic, while the falling stock market is also putting downward pressure on their annual results. External-link. [Insurance Day]

Marsh previously unable to sell pandemic policies

Marsh’s PathogenRX parametric insurance policy providing pandemic cover for businesses was developed two years ago.  It was looked at by a number of firms but was not bought by any until the current outbreak began. External-link. [Insurance Insider]

The perils of not paying attention

The events of this week have underlined the importance of timing your communications as a number of companies issued mistimed and inappropriate marketing emails, social media and website posts. In these exceptional circumstances, human intervention and oversight need to override automated processes to help protect businesses’ reputations. External-link. [The Financial Brand]

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