COVID-19

Covid-19 impact on driving fuels big drop in Progressive loss ratio

US auto insurer Progressive provided the first real data point on the exposure impact of the coronavirus shutdown as it reported a significantly lower loss ratio in March because of a fall-off in claims frequency in the last three weeks of the month.

KBW: “10%” chance of $300mn Hiscox rights issue

KBW analysts attach only a 10 percent probability to a worst-case scenario for BI exposure at Hiscox that would require the carrier to do a $300mn rights issue.

The Maltese Falcon restaurant sues The Hartford and broker over BI denial

A long-standing San Francisco restaurant has filed a lawsuit against an affiliate of The Hartford as well as its broker amid claims the coronavirus is causing “direct physical damage” and is therefore a covered cause of loss under its insurance programme.

Hiscox slammed by celebrity chef Raymond Blanc over BI claim rejection

London-listed Hiscox plc is facing the prospect of another legal action – this time from French TV chef Raymond Blanc – who has enlisted solicitors after being denied a business interruption claim by the insurer.

Covid-19 virtual roundtable: Issue Five

Since the Lloyd’s of London underwriting floor closed in response to the global pandemic in March, risks placed on the PPL platform have reached record highs, with other electronic platforms also reporting a surge in risks bound.

PA Supreme Court decision could weaken BI physical damage argument

In a decision that is being viewed as hurting insurers’ chances of denying business interruption (BI) claims, the Pennsylvania Supreme Court this week issued a ruling that could make it harder to argue Covid-19 did not result in direct physical loss to property.

Most BI policies exclude pandemic coverage in Washington state

A poll conducted by Washington insurance commissioner Mike Kreidler has found only FM Global offers coverage in the state for a pandemic event through a standard policy while 15 insurers offer limited coverage through endorsements.

Reinsurers could question liability for claims arising from US BI legislation

Lloyd’s and London market reinsurers would have scope to question their liability to US cedants were claims to arise from US states passing legislation forcing insurers to pay Covid-19 business interruption (BI) losses, an analysis from Bryan Cave Leighton Paisner (BCLP) suggests.

Covid-19 to reduce (re)insurers’ insurtech capital allocation

The coronavirus crisis is likely to lead insurers and reinsurers to pull back on insurtech investments, both in terms of the number of deals and size of investments.

Broker E&O underwriters bracing for wave of Covid-19 claims

Broker E&O insurers including Swiss Re Corporate Solutions are facing a potential surge in claims from US retail agents and brokers sued by insureds alleging that they failed to properly advise about purchasing appropriate coverage for Covid-19 business interruption losses, The Insurer can reveal.

German trade credit backstop adds to public-private Covid-19 initiatives

Germany’s launch of a Eur30bn trade credit backstop enabling insurers to continue offering coverage for around Eur400bn of credit lines in the face of Covid-19 related claims is the first example of a meaningful public-private partnership being agreed in the coronavirus crisis, despite a range of proposals in other countries.

D&O writers taking “highly unusual” exclusions action: CRC

D&O underwriters are pulling quotes off the table, adding exclusions and tightening underwriting in a sign that they are not comfortable with the level of risk in the Covid-19 fallout, according to wholesale broker CRC Group.

European (re)insurance stocks hold early gains as markets rally

European (re)insurance stocks surged in early trading despite damning data on the Chinese economy’s outlook as investors were buoyed over hopes of a medical breakthrough and signs that the US is on its way to reopening parts of its economy.

Asia-Pacific stocks rally despite Chinese growth figures

Asia-Pacific (re)insurance stocks rallied on Friday despite damning Chinese growth figures which highlighted a historic contraction in the world’s second-largest economy.

QIC Europe now in UK policyholders’ sights after rejected BI claims

QIC Europe – the European operating subsidiary of Qatar Insurance Company (QIC) – and its MGA Eaton Gate is the latest UK insurer to face the wrath of aggrieved policyholders over the non-payment of Covid-19 BI claims.

Greenberg says retroactive BI measures would bankrupt insurance industry

Chubb chairman and CEO Evan Greenberg has warned US lawmakers that attempts to retroactively force insurers to pay uncovered business interruption losses from Covid-19 would “bankrupt” the industry.

S&P says cancelled dividends are sign of caution not capital weakness

S&P Global Ratings has commented that it does not believe insurers’ decisions to suspend dividends as recommended by various regulators in response to the Covid-19 pandemic will hurt their credit profiles.

Covid-19 to challenge P&C industry economics: McKinsey

McKinsey believes the Covid-19 pandemic is likely to affect the property casualty (P&C) insurance operating model on several fronts, with commercial lines more vulnerable to a downturn and carriers facing higher expense ratios if they cannot reduce costs in line with premium reductions.

Allianz CEO Bäte warns on Covid-19 “meteorite”

Allianz CEO Oliver Bäte has warned of “massive” industry losses caused by the spreading coronavirus pandemic which he said has already had a “meteorite impact” on the global insurance sector.

US P&C surplus declines could be larger than in 2008: AM Best

AM Best believes the current downturn’s impact on the surplus of the US property casualty industry – which holds about 18 percent of invested assets in unaffiliated common stock – could be larger than in the financial crisis.

Region

Topics

Events & Conferences

Content Types