Insurance news – week commencing 24/07/22

week commencing 24/07/22:

As holiday makers endured terrible queues to cross the English Channel, ahead of our own summer break the team at Luther Towers has kept its cool to bring you our pick of the insurance stories. This Week will be back in September.

Going against the grain

Lloyd’s Chairman Bruce Carnegie-Brown confirmed that the market’s insurers would cover grain shipments from Ukraine, after a deal was struck with Russia to provide a ‘grain corridor’. External-link. [Reuters] However, some insurers have warned that this amounts to nothing more than an intention, and that it would take time before port calls could resume. Brokers pointed to the need for a clear plan on mine clearance. External-link. [Insurance Day]

Fidelis creates world’s biggest MGU

Fidelis Insurance has created a new MGU to focus on its core functions and specialisms that will underwrite more than $3 billion in gross written premium across various specialty insurance and reinsurance classes. External-link. [Reinsurance News]

Cyber arms race

CyberCube’s Global Threat Briefing found that Russia and Ukraine have been developing cyber armies and that there are 70 separate cyber threat actors related to the war – double the number in March. External-link. [Insurance Edge]

Gathering storms

Persistent severe convective storm events drove insured losses from global natural catastrophes in the first half of 2022. These amounted to $39bn – 18% higher than the 21st century average. External-link. [Insurance Journal]

Aviation pricing at cruising altitude

Although in H1 insurers were still pushing for premium increases, softening of the aviation market continues and flat renewals were achievable where there were no new losses or deterioration, according to a report by WTW. External-link. [Commercial Risk]

Moving with the times

Insurers are increasingly using ‘active insurance’, where customers are incentivised to reduce their risks through lower premiums. The aim is to manage growing claims costs relating to obesity, cyberattacks and extreme weather. External-link. [Financial Times]

Mergers maintain momentum

A study by FTI Consulting found that insurance M&A deals across Europe increased by 26% in the second quarter of 2022. Most of these deals originated in the UK and Ireland, and most involved distribution and service providers. External-link. [Insurance Insider]

Don’t believe everything you hear

An investigation has revealed the role that American PR firm Harrison played in sowing doubts about climate change in the 1990s, funded by fossil fuel industry group the Global Climate Coalition (GCC). The GCC has disbanded and the climate debate is all but over, however some argue that the tactics used by Harrison: reframing the issue, arguing the facts aren’t settled, and spreading messages of doubt, have left an indelible mark on the industry. External-link. [BBC News]

External-link. External links are being provided as a convenience to relevant content; they do not constitute an endorsement or an approval by Luther Pendragon of any of the services or opinions of external content. Luther Pendragon is not responsible for the accuracy, legality or content of these external sites. Please also note that some external content may require a subscription to view.