The Insurance Council of Australia (ICA) yesterday welcomed the commencement of proceedings in the Federal Court of Australia to test the application of further issues in relation to pandemic coverage in business interruption policies.
As Australian courts consider the effectiveness of pandemic exclusions found in many BI insurance policies, the Australian Prudential Regulation Authority (APRA) has been closely monitoring the potential prudential implications of this issue, says the regulator in the "General Insurance" chapter in its "Year in Review 2020" report released recently.
The insurance industry has asked the sector's regulator to look into measures to contain the impact of pandemics over the medium and long term.
Pandemic outbreak (#1 with 36% responses) rises six spots to be the top business risk in China, the epicentre of COVID-19, in the 10th Allianz Risk Barometer 2021 released this month.
Business interruption (BI) claims are likely to be the largest source of pandemic-related claims for Australian non-life insurers, although there is still uncertainty about the ultimate cost, says Fitch Ratings.
QBE, Australia's biggest insurer in terms of premiums, has stated that its 2020 financial results will now include an additional $185m risk margin strengthening with respect to potential Australian business interruption claims.
SMEs in the UK are disappointed with the way insurers handled claims relating to COVID-19.
A trio of Covid-19 related risks ranks at the top of Allianz Risk Barometer 2021, reflecting potential disruption and loss scenarios companies are facing in the wake of the coronavirus pandemic. Business interruption (#1 with 41% responses) and Pandemic outbreak (#2 with 40%) are this year's top global business risks with Cyber incidents (#3 with 40%) ranking a close third.
South Africa's largest general insurer Santam says that it appeal the COVID-19 insurance indemnity period to the Supreme Court of Appeal (SCA).
Cyber insurance is expected to go mainstream to address the spike in cyber risk for individuals and small businesses. Cyberscout, a provider of personal and commercial cyber risk assistance services, shares its perspective on the fundamental shifts in the global cyber risk landscape that happened in 2020, and what 2021 will bring for the insurance industry.