Insurance news – week commencing 23/01/22

week commencing 23/01/22:

This week the world is getting all fired up. BI is bubbling back up, the FCA may be manning the pickets and the climate change debate just gets hotter. Here at Luther Towers, we’re keeping our cool and looking at the news.

Uninterrupted legal wrangling

The bill insurers face for Covid-related business interruption could continue to grow, especially if Corbin & King wins its case against Axa. Should that happen, some predict a flood of new cases and for old ones to be reopened. External-link.[Insurance Post]

Workers of the FCA unite

Members of Unite, which is not recognised by the FCA as its staff union, will ballot on industrial action against the regulator. Management intends to implement a cost-cutting programme which includes abolishing bonuses. External-link. [The Guardian]

Supply chains strained

A study from Resilinc found that supply chain disruption increased by 88 percent last year. Factory fires were the number one cause of disruption. External-link. [Commercial Risk]

Marsh promotes climate risk resilience

Marsh and Risilience have announced that they will collaborate on a project to inform Marsh customers about risks arising from climate change. External-link. [Reinsurance News]

CyberCube twitchy about cyber market

A report from CyberCube found that regional cyber conflicts could spill into other regions. The report also suggested that ransomware is now so prevalent that it is threatening the profitability of the market. External-link. [Insurance Journal]

Drones soar to top tech risk

DAC Beachcroft’s industry predictions list drones, medical malpractice and cyber as the top technology-related risks for the year. The firm expects that drone deliveries will drive this trend. External-link. [Insurance Times]

Industry calls for tailored regulation

The Lords inquiry into London Market regulation was told that the current ‘one-size-fits-all’ approach is costing London business, and that foreign clients find the current regulatory environment too complicated. External-link. [S&P Global]

Solvency II final text submitted

FERMA has submitted a final draft on Solvency II to the European Commission. External-link. [Asia Insurance Review]

BIBA calls for tax cuts

BIBA has published its 2022 manifesto, ‘Managing Risk’, in which it calls for a reduction in IPT. Executive director Graeme Trudgill said that the tax ‘impacts affordability’ and that targeted relief could have real benefits. External-link. [Insurance Business]

IMF supplies bad news

The IMF downgraded its growth forecast for the UK from 5 to 4.7 percent, predicting that supply chain problems and inflation would choke the economy. It advised the UK to tighten its monetary policy to address the cost of living. External-link. [CityAM]

The second rule of Fight Club is…

Chinese censors have made a subtle edit to the end of the film Fight Club, released in 1999. In the original, Tyler Durden, played by Brad Pitt, bombs buildings as part of a plot to reorder society. The new version simply cuts to a message stating that the police “rapidly” figured out the plan, “arrested all criminals” and sent Tyler to a “lunatic asylum”. A new world of creativity! External-link. [BBC News]

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