Insurance news – week commencing 24/10/21

week commencing 24/10/21:

There’s been a lot of pressure on regulators this week, with calls for them to change priorities and a survey finding that regulatory risk is seen by the industry as one of its main threats. At Luther Towers, we’re watching with (purely academic) interest as the commercial cannabis industry goes from strength to strength.

M&A rates to rise

Experts have predicted that European transaction liability insurers will be forced to increase rates next year because of an increase in claims volumes, and the expected impact of Covid-19 related claims. External-link. [Insurance Day]

Good governance means savings

Marsh has announced a new D&O initiative that will give US clients better policy terms and conditions if they meet ESG requirements. Under the initiative, clients will receive preferred coverage for ESG-related exposures. External-link. [Reinsurance News]

The rising cost of flooding    

As climate change puts greater numbers of UK homes at risk of flooding, technology and data on hydrological modelling will become vital as insurers inevitably demand houses have predictive protection from flooding. External-link. [Financial Times]

Competitiveness is a priority

The Government may reform regulators’ priorities so that promoting international competitiveness and growth becomes a primary objective as they look to position the UK for growth post Brexit. External-link. [The Times]

Lloyd’s cuts carbon

Lloyd’s is pushing members to cut carbon emissions and to put together a ESG plan in the second half of 2022. It has also joined the Net Zero Insurance Alliance, which commits it to achieving net zero by 2050. External-link. [Insurance Journal]

Covea looks for partner

Talks between Exor and Covea over the purchase of PartnerRe have restarted after they collapsed last year. The move follows the failed talks between Covea and Axa over the sale of Axa XL Re. External-link. [Insurance Insider]

Ransomware the new pandemic

Ransomware is the most prominent cyber threat companies face and is a ‘pandemic’ according to Allianz. Bad actors can rent hacking tools from criminal groups very cheaply, fuelling an increase in attacks. External-link. [Insurance Business UK]

Regulation’s no joke

A report by PWC found that after cybercrime, regulatory risk was the biggest concern for the global insurance industry, with the cost of compliance hampering firms’ ability to innovate. External-link. [Insurance Times]

Insurance bodies lobby for money

Six representative insurance bodies wrote to Economic Secretary John Glen to support an application for funding from Innovation UK’s Next Generation Services. External-link. [Insurance Insider]

Lucky break for motor insurers

Lockdowns meant that mileage, accidents, and thefts each fell by at least a fifth, whereas motor insurance premiums fell by only nine percent. This meant insurers enjoyed a £3.3 billion windfall, according to ACSO. External-link. [Insurance Times]

A high in spending

Legal cannabis sales reached $7.5 billion last year, making it one of the US’s fastest-growing industries. While some mainstream industries are sitting out this boom, others see a burgeoning market and spend. External-link. [Forbes]

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