week commencing 18/10/20:

This week we all get an extra hour’s snoozing as the clocks go back for winter. Use the extra time to catch up on our carefully curated and current news round up.

Latest twist in FCA test case

RSA, QBE, Hiscox, MS Amlin, Argenta and Arch have decided not to appeal against a London High Court ruling that they were wrong to reject claims from holders of three business interruption insurance policies pushed to the brink of collapse by the COVID-19 pandemic. External-link[Reuters]

AXA XL pulls out of management liability in London

Due to concerns around the level of claims, pricing and profitability, the French insurer announced that it would stop underwriting management liability and financial institutions business in the London Market. External-link. [Insurance Business]

Luxury Indian airline chooses Convex

Vistara, a joint venture between Tata Group and Singapore Airlines, has chosen Convex as its insurer. This is the first time it has won a tender to become the lead market for an airline account. External-link. [The Insurer]

High tide in P&I Pool claims

The combination of a high number of severe claims and the pandemic has meant that pooled P&I claims hit $300m at the halfway mark of the financial year. Ratings agencies believe price rises will follow. External-link. [Lloyd’s List]

Buyers start the January renewals early

As virtual renewals pick up pace, higher prices are almost guaranteed as insurers seek to redress soft market pricing, as loss inflation fears mount. There is less clarity about how high they will go however. External-link. [Insurance Insider]

Solvency II in government’s sights for reform

This week a review was launched into the workings of Solvency II – pensions and life providers believe they are too onerous and need changing, while commercial insurers are keen to maintain regulatory equivalence. External-link. [Financial Times]

A lot of old crepe

Allianz was the victor in a BI and property damage legal dispute decision with a Kensington crêperie. The decision did not consider any disease clauses or denial of access extensions examined in the recent FCA case. External-link. [Post Online]

Blue chip Lloyd’s syndicates’ expansion announcements

With the business plan approval process well underway, Beazley, Hiscox and Tokio Marine Kiln lead the way in having their expansion plans approved. External-link. [The Insurer]

Q3 COVID losses total €800mn for Munich Re

Losses were attributable to various lines of business and add to the €700 million reported in Q2 and the €800 million recorded in Q1, taking the total to €2.3 billion so far for 2020. External-link. [Reinsurance News]

Time of truth for W&I insurance

20 insurers are fighting a claim in Germany on a warranty and indemnity (W&I) placement. In 2016 this was the largest ever claim in this sector and may test the viability of the W&I product. External-link. [Insurance Insider]

Hyperion back themselves

Dual, the underwriting agency within Hyperion, will begin using its parent group’s underwriting capital alongside its existing capacity providers. Speculation has it a Lloyd’s syndicate could be in the offing. External-link. [Insurance Day]

Plan beats no plan

The City of London Corporation has a five-year plan to reinvigorate the City post COVID – with hipsters and artists to be as much part of the square mile as fund managers and underwriters. External-link. [Financial Times]

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