OMGosh.  It has been non-stop chatter about last week’s Missouri Court of Appeals decision holding that GEICO could owe $5.2 million to a woman who contracted human papillomavirus from having unprotected sex in its insured’s 2014 Hyundai Genesis.  The case has been covered by such major media as CNN, NBC, CBS, The Washington Post, and on and on and on.  [In fact, seven CO readers sent me the opinion and suggested that I include it in the newsletter.   I’m not sure if I should be flattered or concerned that people think of me when crazy cases come up.] Of course, $5.2 m ..read more

New research published from Capgemini and Efma’s recent World Property and Casualty Insurance Report reveals that climate change is hurting the insurance industry, and that insurers need to change their business models to achieve climate resiliency. The inaugural report titled – “Walking the Talk: How insurers can lead climate change resiliency”, addresses the impacts on climate resiliency within the insurance industry. The report highlighted how globally, economic losses driven by climate change have increased by 250% in the last three decades. At the same time, 73% of policyholders rank clim ..read more

Partnership creates a standout reinsurance and advisory business, bringing full capability and scale to Howden’s diversified and differentiated brokerage, MGA, capital markets and data & analytics proposition 9 June 2022 – Howden Group Holdings (“Howden Group” or the “Group”), a leading international insurance group, today announces the acquisition of TigerRisk Partners, (“TigerRisk”) the leading risk, capital and strategic advisor to the global insurance and reinsurance industry. The transaction significantly enhances the scale and depth of Howden’s reinsurance and capital markets offer ..read more

Absent diversity of citizenship, federal courts lack jurisdiction over petitions to confirm or vacate domestic arbitration awards, even where the underlying claims arise under federal law. U.S. Federal courts are courts of limited jurisdiction, which Congress and the Constitution have defined to include two main categories: “diversity” jurisdiction (suits between citizens of different states or between U.S. and foreign citizens) and “federal question” jurisdiction (suits involving claims based on federal law). In turn, while the Federal Arbitration Act (the “FAA”) authorizes a party to an arbi ..read more

The insurance industry plays a critical role in both the financial system and the economy overall, with U.S. insurance companies writing approximately $1.5 trillion in premiums and holding trillions of dollars more in assets on their balance sheets.1 By underwriting the risks of millions of individuals, businesses, and public entities, the insurance industry provides an essential service as a backstop after unfortunate events. At the same time, by investing the premiums they hold, insurance companies are major institutional investors and thus have significant influence in financial markets ..read more

Strong momentum in the non-life run-off sector last year continued into 2022 with the announcement of eleven deals, says a new report from PWC. The professional services firm said that while the number of deals announced was slightly lower than Q1 2021, the total estimated value of executed deals during Q1 2022 exceeded that of the same period in 2021 ($4.2bn vs $3.3bn), driven by the significant Enstar and Aspen deal. Read More… The post “Strong momentum in run-off sector continues”- PWC appeared first on AIRROC Update ..read more

In an important ruling for insurers, U.S. District Court Judge Patti Saris found that Massachusetts does not follow the position taken in Cypress Point Condo Association v. Adria Towers, LLC, 226 N.J. 403, 418 (2016), i.e., it does not hold that “faulty workmanship claims [should be recognized] as … an ‘occurrence,’ thus triggering coverage, ‘so long as the allegedly defective work [was] performed by a subcontractor rather than the policyholder itself.”[1] Instead, Judge Saris reaffirmed earlier Massachusetts authority holding faulty work is not an “occurrence” for coverage purp ..read more

Southern Fidelity Insurance Company has entered into receivership and is being liquidated, according to the Florida Office of Insurance Regulations (FLOIR). The state’s insurance office made the move on the basis that the insurer was impaired, insolvent or likely to become insolvent and that further transactions would be potentially hazardous to policyholders, creditors, stockholders or the public. Read More… The post Another Sunshine State Insurer Falls: Southern Fidelity Enters Receivership appeared first on AIRROC Update ..read more

Climate change is an existential risk to human life. But, before we get to life as we know it potentially disappearing, this commentary will discuss climate change as a significant risk to insurers and reinsurers. Swiss Re first identified the risk in 1979, and today it is one of the most significant concerns for businesses. Here are some statistics. In a 2014 study by Munich Re, extreme weather events—such as prolonged droughts, hurricanes, floods, and severe storms—led to $600 billion (US dollars) in insured losses since 1980. This is a 400 percent increase since 1980. Fast-forward to today ..read more

On May 11, NextGen Task Force member Matt DiSanto of AON participated as a panelist in the Basics of Legacy Transactions educational forum, along with co-panelists Robert Redpath from Enstar, and John Sparks from Odom & Sparks. The session focused on Insurance Business Transfers (“IBTs”), providing an overview of the regulatory landscape, explaining how IBTs work, and business motivations for entering into such a transaction, as well as some case studies of the process. IBT’s are poised to take off in the US and will play an important role in the future of the legacy space as the framework ..read more