Insurance news – week commencing 27/02/22

week commencing 27/02/22:

It’s been a long week, with the Russian invasion raising geopolitical tensions to fever-pitch. The implications for insurers are vast, with unpredictable markets and a sharp rise in the risk of ransomware attacks. At Luther Towers we are keeping our heads down to bring you our pick of the insurance news.

Lloyd’s supports sanctions

Patrick Tiernan, Lloyd’s chief of markets, confirmed that the marketplace supported sanctions against Russia, and that it was engaging with the government. It’s expected that sanctions will lead to fluctuations in the market. External-link. [Reinsurance News]. AM Best said that it may become difficult to service claims on Russian policies. External-link. [Carrier Management]. Meanwhile, Russian aviation and space companies have been blocked from the UK insurance market, External-link. [Reuters] while credit and political risk insurers are preparing for potentially large losses. External-link. [Insurance Insider]

AXA gets big bill

The High Court has ordered AXA to pay out on business interruption claims worth almost £4.4mn. The court ruled in favour of Corbin & King which is currently in administration post Covid. External-link. [Business Insurance]

Aon twitchy after attack

Aon is investigating a cyber incident that it says had only a limited impact on its operations. There are increasing concerns about cyber attacks perpetrated by ransomware gangs loyal to Russia. External-link. [Insurance Journal]

Claims pour in

The Insurance Council of Australia revealed that insurers received nearly 50,000 claims due to flooding in Queensland and New South Wales. The vast majority of claims related to property, and the rest were motor claims. External-link. [Insurance Business]

Life throws lemons

The insurtech Lemonade saw its stock price drop after it reported a loss for 2021. CEO Daniel Schreiber blamed older, under-reserved losses for the poor results, but some analysts questioned this explanation. External-link. [S&P Global]

Cyber wording to be tested

The ratings agency Fitch expects that the effectiveness of ‘war exclusion’ clauses in cyber policies will soon be tested and advised that insurers needed to ensure that they constantly adapt and update the language of policies. External-link. [Reinsurance News]

Downstream prices can’t go up

After a decline in downstream energy rate rises, brokers are optimistic that oversubscribed deals will lead to price reductions. However, underwriters warned that low profits meant 2021 did not feel like the peak of the hard market. External-link. [Insurance Insider]

Manners maketh email

You would have thought, after two years of home working, that everyone would have digital communications down to a T. Apparently not however, as badly phrased and poorly received emails are upsetting colleagues and in some cases holding back people’s career progression. Make sure you double check for anything that could be misconstrued as passive-aggressive! External-link. [Financial Times]

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