Insurance news – week commencing 06/03/22

week commencing 06/03/22:

This was the week that President Zelensky demonstrated the value of passion and purpose in a presentation to the UK parliament that probably helped shift UK immigration policy. Not many zoom calls deliver such stellar results!

Brace, brace for lawsuits

The London aviation market is readying itself for a years-long fight over claims arising from the indirect effect of sanctions on Russia. Certain turns of events could leave the London market facing its largest-ever loss event. External-link [Insurance Insider] Insurers have been urged to consider holding back cash reserves while it remains unclear whether sanctions on insurance pay-outs mean that contractual liability has been removed, or simply deferred. External-link [Law360]

Buyers beware

Buyers of cyber insurance have been warned they need to inspect the war exclusions in their contracts extremely closely. Underwriters are rewriting exclusions in the face of the war in Ukraine and recent court rulings. External-link [Commercial Risk]

Rockets left uncovered

After the Government announced that Russian aviation and space insurance buyers were banned from accessing UK markets, Lloyd’s instructed insurers to identify affected policyholders and inform them of changes. External-link [Commercial Risk]

Lloyd’s raises temperature for catastrophe underwriters

Lloyd’s director of portfolio management, Kirsten Mitchell-Wallace, warned underwriters that climate change is creating an increasingly volatile catastrophe market, and that they need to improve modelling and risk pricing. External-link [Reinsurance News]

Gallagher launches ace new business

Gallagher has launched a new specialty reinsurance solutions business in the Dubai International Finance Centre and bought a 51% share in ACE Re, whose team and clients will move into the new business. External-link [Middle East Insurance Review]

Rising flood costs

The Insurance Council of Australia has increased its estimation of the costs of flooding in South-East Queensland and New South Wales for a third time, to $1.45bn. External-link [Reinsurance News]

Corporates hedge bets

A report by Marsh found that the M&A market’s record year in 2021 was driven by a reliance on transactional risk insurance to reduce deal risk. Marsh predicted an expansion in capacity and downward pressure on prices in 2022. External-link [Insurance Edge]

Insurers told to innovate

Australian industry body, Business NSW, says members believe insurance is their biggest negative cost driver, and has called on insurers and governments to look at alternative models, arguing that a rise in premiums and the number of uninsurable risks is not sustainable. External-link [Insurance Business]

Keep it simple

Mark Schauss, managing director at Markel, argued that insurance for SMEs must become simpler and that insurers must make better use of data to understand risk profiles and drive down costs. External-link [The Insurer]

Show it all off?

The idea of ‘bringing your whole self to work’ has risen in popularity, but some are wondering whether the stiff upper lip survived so long for a reason. With co-workers being beamed into our kitchens daily, some of us are wishing we knew much less about our colleagues. External-link [The Cut]

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