Insurance news – week commencing 20/03/22

week commencing 20/03/22:

This has been a week to the test the mettle of PRs everywhere. Would you prefer to handle the spring statement, the Caribbean tour, the P&O sackings or Russian foreign policy? Perspective is everything – in this industry perhaps more than any other.

Russian turbulence contained

Ratings agency Fitch has said that Russian expropriation of leased aircraft could cost the London market $10bn in its worst-case scenario but that material ratings implications are not anticipated. External-link. [Insurance Journal] It is not thought Ukraine losses will impact the Lloyd’s Central Fund. External-link. [Insurance Insider]

Australians beat a retreat

In the wake of severe flooding in New South Wales, some are concluding that climate change will render many risks uninsurable, forcing communities into a managed retreat from dangerous areas. External-link. [Financial Times]

Wide berth from competition

Richard Turner, IUMI president, warned at the Marine Insurance London Conference 2022 that while London remained the leading centre for marine insurance, the gap from its competitors had closed in recent years. External-link. [Insurance Day]

Buffett buys Alleghany

Warren Buffett’s conglomerate Berkshire Hathaway has agreed to acquire insurer Alleghany in an $11.6bn all-cash transaction. The agreement is expected to close in the last quarter of the year. External-link. [Yahoo Finance]

Motor insurers accused of discrimination

A study by Citizens Advice found that people from ethnic minority backgrounds paid £250 more per year on car insurance than white people. The ABI said insurers never used ethnicity as a factor in pricing, as this was illegal. External-link. [BBC News]

Green light for ESG tool

Marsh has announced its new ESG Risk Rating tool, which will score a client’s ESG score across 18 themes. As they improve their ESG risks, clients will gain access to additional market capacity. External-link. [Insurance Business]

SEC turns up the heat

The SEC has proposed a new set of climate disclosure rules that will require firms to publish their direct and indirect carbon emissions, state how climate risk affects their business, and report on their climate-related goals. External-link. [CNBC]

Volante snapped up by Acrisure

US broker Acrisure announced that it has acquired London-based MGA Volante. In just three years Volante had achieved $350 million of premium. External-link. [Business Insurance]

Hard market cushions reinsurers

Ratings agency Fitch has said that while European rate rises are losing steam, they are enough to protect the big reinsurers against higher-than-average catastrophe costs, as well as increased life insurance costs due to Covid-19. External-link. [Reinsurance News]

Lloyd’s bounces back

Lloyd’s posted its first full-year profit for six years in 2021, reporting profits of £2.3bn. However, property posted another loss despite improvements on the year before, due to a number of significant catastrophe events. External-link. [Artemis]

PR consultants caught in the squall

P&O sacking 800 staff over Zoom was ugly, but were the PR team to blame? Some argue this was an object lesson in what not to do in a crisis. Others were keen to emphasise that ‘you can’t communicate out of a crisis you’ve behaved your way into.’ Either way, we’re just glad DP World isn’t a client. External-link. [BBC News]

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