Legal/ Regulatory

FCA: UK insurers’ interpretations are “unrealistic” and “impractical” in BI test case

The UK’s Financial Conduct Authority (FCA) has described the interpretations adopted by eight insurers in resisting Covid-19 related BI claims as “unrealistic” and “impractical” which are unintelligible to the average SME consumer of commercial insurance.

City watchdog will not revisit FSCS funding despite levy hikes

The UK’s Financial Conduct Authority (FCA) has revealed it does not intend to revisit the funding structure of the financial services lifeboat fund, despite its chairman warning the system needed a restructure last month.

Hallmark given until September to regain Nasdaq compliance

Nasdaq has granted US specialty insurer Hallmark Financial Services an extension to regain compliance with its listing rules.

Insurer wins in first US Covid-19 BI declaratory judgment

In what is being viewed as the first Covid-19 coverage decision issued in the US, a circuit court judge has granted Michigan Insurance Company’s motion for summary disposition against a restaurant owner.

California considers retroactive BI legislation

Legislation has been amended in California to create a presumption that Covid-19 caused business interruption losses under commercial insurance policies, a move that follows Rhode Island recently introducing a retroactive BI bill.

UK competition watchdog launches investigation into Ardonagh’s Bennetts deal

Ardonagh Group’s £26mn ($33.9mn) deal to buy Bennetts Motorcycling Services from Saga Services Ltd is being investigated by the UK’s Competition and Markets Authority (CMA).

Axa XL gets green light to open first foreign reinsurance subsidiary in China

Axa XL has become the first company to receive sign off from the China Banking and Insurance Regulatory Commission (CBIRC) to establish a foreign-owned reinsurance subsidiary in the country.

NFL, Nascar, film and TV associations urge Congress to act on pandemic insurance

A blockbuster group of 12 associations in the news, sports and entertainment fields have written to leaders in Congress to urge action on pandemic risk insurance, noting the “positive step” represented by the introduction of the Pandemic Risk Insurance Act (Pria).

IRB revises 2018 and 2019 results down after forensic investigation

IRB Brasil Re has had to restate its results for the 2018 and 2019 financial years after internal investigations discovered that former staff had manipulated its operating data to a “material” degree, said the reinsurer.

IRB Brasil appoints bankers for capital raise

IRB Brasil has appointed Banco Bradesco and Banco Itaú to structure a potential capital increase in a move the troubled Brazilian carrier says will ensure its technical provisions and liquidity margin to meet “immediate” regulatory compliance.

E&S entrants should not overlook regulatory “sea change” since last wave

Lawyers at McDermott Will & Emery have suggested that the capital looking to get into the US excess and surplus lines (E&S) market should ensure they are using the post-Dodd-Frank playbook taking note of US regulatory changes in recent years.

BoE orders insurers to push ahead with climate risk analysis

The Bank of England’s Prudential Regulation Authority (PRA) has ordered insurers to press ahead with analysing the impact of climate change on their operations after the regulator issued new guidance to help firms address climate-related financial risks.

Mapfre led renewed European sell-off as virus fears bite

Shares in Spanish (re)insurer Mapfre fell over 11 percent in a renewed sell-off for European (re)insurance equities last week as investor confidence took another hit on surging coronavirus cases in the US and an ominous warning from the IMF.

Policyholder action groups permitted to intervene in FCA test case

The UK’s High Court has granted the Hiscox Action Group’s (HAG) application to intervene in the Financial Conduct Authority’s (FCA) landmark test case on Covid-19 BI claims.

ABI backs Treasury’s “long overdue” Solvency II review

The Association of British Insurers (ABI) has welcomed plans announced by the HM Treasury to review the Solvency II regime, noting that an overhaul of the directive for UK insurers is “long overdue”.

Insurers call on EU to ease “unnecessarily conservative” reserve requirements

European insurers have urged the European Commission to reduce capital requirements for the industry arguing that the Solvency II regime is “unnecessarily conservative” and that a net reduction in aggregate capital levels is justified.

US pandemic proposals’ momentum checked as hearing pushed back amid law enforcement focus

A Congressional hearing on insuring pandemics that was due to take place this week has been postponed, with lawmakers’ focus on law enforcement taking precedent, dealing a blow to the momentum of proposals to prepare against future pandemics.

Democrat House member calls on FIO to investigate pandemic insurance market

House committee on financial services member Emanuel Cleaver has urged the US Federal Insurance Office (FIO) to investigate how insurers have responded to the coronavirus pandemic and assess whether sufficient affordable coverage exists for future events.

Less than 3% of in-force policies cover Covid-19: APCR

Less than 3 percent of in-force businesses interruption policies would trigger a clear-cut payout as a result of the coronavirus pandemic, according to the French financial regulator ACPR.

Hiscox and UK insurers critique FCA’s “but for” stance in Covid-19 test case

The Covid-19 pandemic and the government’s subsequent lock-down measures are two separate causes and the FCA is wrong to conflate them when examining insurers’ liability under business interruption policies. This is one of the main lines of defence produced by Hiscox and seven other commercial UK insurers in their responses to the FCA’s test case, which were published by the regulator today.

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