Insurance news – week commencing 24/04/22

week commencing 24/04/22:

Apparently, the route to success is not to take huge risks, but instead to carefully and consistently produce results. Who knew? Clearly not Elon Musk, who has decided to take one almighty punt on a failing social network.

Europe’s coming home

Alan Sheppard, head of insurance policy at the PRA, has said that the regulator expects 130 European insurance firms to apply to operate in the UK via a third country branch as the temporary permissions regime is phased out. External-link. [Law360]

No return flights

Air Lease Corporation has given up in its attempts to bring back its 27 planes which are stuck in Russia due to sanctions, setting up an insurance claim worth about $800m. External-link. [Simple Flying]

Risk not bringing rewards

Analysis has found that the most profitable underwriters are also those with the most consistent results over the last decade, showing that it’s not necessary to take big risks to get the big pay back. External-link. [Insurance Insider]

Lloyd’s committed to delivery

Lloyd’s has assembled a committee of senior industry figures to aid the implementation of the Blueprint II reforms and drive the adoption of new technologies. External-link. [The Insurer]

Perilous winds in Europe

The PERILS Insurance Exposure Database found that European windstorms remain insurers’ largest exposure, with €64.8tn of insured value in January this year. 2021 was an active year for windstorms, a trend that has continued. External-link. [Artemis]

Transition taskforce launched

Aviva CEO Amanda Blanc and Economic Secretary to the Treasury John Glen will co-chair the UK Transition Plan Taskforce, which will develop the ‘gold standard’ for companies’ net zero transition plans. External-link. [Investment Week]

D&O takes a dive

The trend for more businesses to compete for less business is driving down D&O rates. Fierce competition and the arrival of disruptive start-ups combined with a shrinking IPO landscape are the causes. External-link. [Insurance Insider]

Insurers fear opioid dependence

Lockdowns and NHS backlogs mean that an increasing number of patients are using opioids for pain relief as they await surgery. Insurers are worried that this increase in use could leave them exposed to a higher risk of claims. External-link. [Insurance Day]

Flattening the curve

A study by Marsh found that global commercial insurance prices rose for the 18th consecutive quarter in Q1 2022. However, it also found that price increases had moderated as compared to the last quarter of 2021. External-link. [The Actuary]

Hiring spree

As insurance firms fight with each other, at increasing expense, over the same staff, some argue that the London Market needs to improve its recruitment and broaden the talent pool from which it draws. External-link. [Insurance Insider]

Little bird told me

Elon Musk, in a typically eccentric move, has decided that he wants to buy Twitter, and Twitter’s board has decided it wants to sell to him. Is this a good move? Perhaps not – for Twitter, public discourse or even for Musk. A few tired, browbeaten souls are imploring Musk to just put us out of our misery and delete Twitter as soon as he buys it. External-link. [The Guardian]

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