Inside FAC July-August 2020
Published: 10/07/2020
A sailor’s life
Insurers for BW Offshore’s Sendje Berge FPSO may have dodged a bullet following a pirate attack on the vessel, but the ordeal may only be beginning for the nine crew members kidnapped in the raid.
Upstream market dodges FPSO hijacking loss
The upstream energy market is unlikely to face a claim for the hijacking of a floating production, storage and offloading (FPSO) vessel off the coast of Nigeria earlier this month.
Pandemic quickens A&H market hardening
A trend of capacity withdrawals from the accident and health market preceding the Covid-19 outbreak has been compounded by a growing pushback on pricing and terms and conditions following the pandemic.
Lawyers warn of Covid-19 liability claims surge
Insurance lawyers are anticipating a massive surge in PTSD-related claims in the aftermath of the Covid-19 outbreak, amid a wider uptick in liability claims triggered by the pandemic.
JLT Fac’s Macdonald-Smith resurfaces at Oneglobal
Vanessa Macdonald-Smith, who resigned as CEO of the legacy JLT Fac business in April 2019, has resurfaced in the market as head of direct and facultative at Oneglobal Broking.
ANALYSIS: Aerospace
The aviation market has had a turbulent few years, but despite coronavirus-related loss of premium income in 2020, continuing rate increases into 2021 could keep it on track to profitability
PROFILE: Lockton Re Fac
Lockton Re has leveraged long-standing client and market relationships to get its burgeoning fac business moving, despite the challenges of global lockdown
MARKET PROFILE: Argentina
Argentina has had a difficult 2020, following the ninth default in the country’s history. David Benyon assesses the impact of this plus Covid-19 on the (re)insurance sector
SECTOR PROFILE: A&H
From a hospital case, with declining profitability and worsening claims, the A&H market is returning to good health, with rates having firmed since the onset of Covid-19, writes Helen Yates
Müller-led turnaround sets sights on ‘New AGCS’
Allianz Global Corporate & Specialty (AGCS) CEO Joachim Müller has unveiled a turnaround plan that will make the carrier “more efficient, leaner and faster”.
Wimbledon contingency cover unlikely to renew for 2021
The All England Lawn Tennis & Croquet Club (AELTC)’s contingency policy is unlikely to renew next year due to market constraints, according to the CEO in charge of the Wimbledon tennis tournament.
Hiscox Action Group granted role in FCA test case
The Hiscox Action Group (HAG) has been given permission to take part in the Financial Conduct Authority (FCA)’s test case on Covid-19 business interruption (BI) claims.
Argo withdraws from SME cyber
Argo Group has exited the SME cyber market, leading to the departure of senior underwriter and group head of cyber Paul Miskovich from the carrier.
South Korean downstream loss hits $600mn
The loss from a March explosion at a South Korean petrochemical plant has expanded from about $200mn to around $600mn after business interruption (BI) claims pushed up the initial loss estimate.
Teva claims threaten $600mn D&O loss
The directors’ and officers’ (D&O) insurance market is bracing for a total loss of around $600mn for claims against American-Israeli drug manufacturer Teva Pharmaceuticals.
Marine market eyes $49mn Covid-19 claim
A $49mn marine liability policy held by supply ship operator Rodi Marine is expected to be one of the first in the market to receive a Covid-19-related claim.
Guy Carpenter predicts $160bn 2020 loss total
Insured losses for 2020 could make it the largest year for claims in history, according to Guy Carpenter, with losses totalling $160bn in the broker’s worst-case scenario.
PG&E $11bn wildfire settlement approved
Pacific Gas and Electric Company (PG&E) has received approval from the California bankruptcy court for an $11bn settlement with insurers related to wildfire losses in 2017 and 2018.
Cannabis insurers face riot losses
There has been a spate of claims in the cannabis insurance market after riots and looting broke out in many US cities earlier this month, according to broking sources.
FCA test case insurers hit back
Insurers involved in the Financial Conduct Authority (FCA)’s test case for BI disputes have contested the regulator’s assertion that the Covid-19 outbreak was the proximate cause of insureds’ losses.
S&P downgrades AGCS ratings outlook
S&P Global Ratings has revised its ratings outlook on Allianz Global Corporate & Specialty (AGCS) from stable to negative, citing Covid-19-related profitability concerns.
News digest
Axa XL has received approval to set up a reinsurance subsidiary in China, making it the first foreign-owned reinsurance subsidiary in China.
Market moves
Brit has appointed Andrew Umphress as vice president, terrorism, for its US specialty operation, Brit Global Specialty USA