contingent business interruption

As our sister publication Reinsurance News reported yesterday afternoon, Lloyd’s has asked its members that have been hit by sizeable losses as a result of the Covid-19 coronavirus pandemic to accelerate capital injections with the goal of stabilising the markets capital position.

The ongoing legal action to force pandemic business interruption and shutdown claims from the Covid-19 coronavirus outbreak into property or catastrophe insurance and reinsurance programs may be tempered by an appreciation that this would significantly impact the global re/insurance market, A.M. Best believes.

Plaintiff attorneys believe there are a number of legal precedents that could mean insurers end up taking more business interruption claims from the Covid-19 coronavirus pandemic than initially thought, which analysts say suggests a rising risk of the impact being greater than anticipated.

Legal actions and efforts to enable businesses and also insurers to force through claims related to business interruption appear to be expanding, with potentially significant ramifications for some in the reinsurance and insurance-linked securities (ILS) market should any succeed.

Parametric triggers, coupled with increasingly granular data and technology, can “expand the limits of insurability” according to Swiss Re, especially when it comes to non-physical damage business interruption (NDBI).

As 2015 gets underway organisations continue to view business interruption (BI) and supply chain risk as the main threat to operations, with the impact of natural catastrophes and fire/explosion risks following, according to a recent Allianz report.

The issue of business interruption and contingent business interruption insurance losses is becoming a major conundrum when it comes to estimating the total insured loss caused by hurricane and post-tropical storm Sandy. Business interruption claims can take weeks to develop, longer to be reported and quantifying the actual exposure is tricky. Add to that uncertainty […]

AIR Worldwide has announced that they have expanded their suite of Catastrophe Risk Engineering (CRE) solutions to add the ability to better quantify, mitigate, and manage the risk associated with the impact of catastrophes on supply chain networks. Supply chain business interruption is a huge insurance risk which was highlighted by catastrophes last year including […]

The president of the Federation of European Risk Management Associations (FERMA), Peter den Dekker, has called on reinsurers to work with their ultimate customers, corporate insurance buyers, to develop solutions for natural catastrophe risks. Speaking at the opening of the 2011 FERMA Risk Management Forum, den Dekker implied that the recent spate of disasters shows […]