Of Special Interest


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14th June 2020

Newslink Global Insurance Trends-Editor's Weekly Overview

This week, COVID-19 issues remain in the headlines but the trend is now to look more at its impact on the insurance markets and how it might change the way they work and the products that are offered. A FWD Research survey indicated that two thirds of UK brokers polled believe the insurance profession has not reacted well to ensure consumers and businesses have the adequate cover to navigate the pandemic crisis. Meanwhile, Mactavish, the specialist insurance buyer and claims resolution experts, feels the Financial Conduct Authority's(FCA)review is incomplete if it is not extended to look at the role played by brokers in developing policy wordings, providing guidance on coverage and advising on BI claims. This is because it believes they are exposed to huge conflicts of interest as they derive as much of 80% of their revenue from insurers while only 20% is composed of fees from their clients. A Twitter poll of the Chartered Insurance Institute(CII) and Personal Finance Society membership’s showed that by mid-May, only 12% of insurance professionals and financial advisers think post COVID-19 they will return to the same way they worked beforehand. A total of 17% of 116 surveyed plan to work entirely remotely even once the government ends all restrictions to slow the spread of coronavirus and seven out of 10 expect a mix of working from home and in an office environment once the threat of COVID-19 passes.
GlobalData predicts that the demand for connected home insurance will fall as consumers stay at home-the researchers also reviewed the pandemic influence on the French and Italian insurance markets. DBRS reviewed the trade credit insurance position relating to the pandemic.In the US, Praedicat launched nine realistic COVID-19 litigation scenarios and a COVID-19 litigation tracker to help clients manage their exposure on casualty lines of business, and Machine Cover is developing what it believes to be the world’s first parametric-based pandemic insurance product.
The speedier impact of digitalisation as a result of the pandemic is generally expected. Lloyd’s new API launched this week aims to enhance and simplify electronic placement-PPL usage has increased considerably since the start of the pandemic. Lemonade filed for an IPO on the New York Stock Exchange and is looking to raise about $100m. Long term technology suppliers Duck Creek raised $230m from new and existing investors for continued investment into its business growth, and Sapiens completed a public offering of non-convertible series B debenture in Israel for a sum of approximately $60m. Guidewire's Cyence for Cyber Risk Management solution was chosen by Optio, and Russia's largest insurer Rosgosstrakh is deploying additional Guidewire applications. EIS is to partner with EPAM to help insurers accelerate insurer digital transformation initiatives in the UK, and Aon’s partnership with GK8 will provides insurable digital-asset storage tech. There was a 25% spike in ransomware attacks in the first quarter reported to Beazley Breach Response(BBR) Services. Software Solved attracted Innovate UK grant funding to support the launch of pioneering property survey technology, and AGCS published a new report on electric cars. SSP expanded its AWS cloud capabilities to the Cape Town region in South Africa.
Insurance Europe responded to an EC white paper on a framework for Artificial Intelligence, and also called for the creation of a centralised public register for Environmental, Social and Governance(ESG) data in the EU.
ERGO Group signed an agreement to obtain 24.9% equity interests of China-based Taishan Insurance. Fidelis is to raise a further $500m of equity capital, and Lancashire is to issue new equity of around £287m($365m). Cryptoasset insurer Evertas received a licence from the Bermuda Monetary Authority(BMA). The Lloyd's Market Association(LMA) and the International Underwriting Association(IUA) reported that international structured credit insurers delivered an ‘outstanding’ claims payment performance in 2018-19. The Global Reinsurance Forum(GRF) appointed Emmanuel Clarke(PartnerRe) as chairman and Jean-Jacques Henchoz(Hannover Re) as vice chairman. Stuart Ramsden was named as Regional director UK & Ireland for trade credit insurer Atradius.

Full articles on the above topics are included in those added this week to the Newslink Global Trends Database Research Matrix service at www.onlystrategic.com
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