Insurance news

Whitespace Platform, a fully digital e-trading platform for brokers and insurers, marked the second anniversary of its launch.

According to Whitespace, since its launch, 189 organisations have joined the platform, which serves customers in the UK, Europe, North America and Africa across 14 overall classes of business.

Source

Without IP protection, he said, society wouldn’t be where it is with medicines, or vehicles, or technology because not many people would spend the time and money necessary to develop new solutions when it wouldn’t be possible to make a return on that investment. IP is the backbone of an economy, particularly the modern economy where the value of intangible assets so far outstrips the value of physical assets.

Alsegard, who has worked in the IP insurance space for over 15 years now, highlighted the variety of different companies from a myriad of sectors that are seeking out IP insurance these days.

“Working in the space means we get to understand so many different areas, and it’s never the same thing twice so it doesn’t get boring,” he said. “What I like about the IP space as well is that the companies seeking this type of insurance are typically talking about what they’re doing next, what they’re patenting now and what’s around the corner for their brands. That means they’re really passionate about it too, which always makes for a fantastic conversation.”

There are many types of intellectual property risk, he said, but the most common reason that companies are seeking IP insurance today is due to IP infringement risk – when a business or individual is alleged to have used someone else’s IP without authorisation. For most companies, infringement risk is a relatively low-frequency event but, when it does happen, it can have a significant impact on a business.

Read more: Intellectual property insurance – an introductory guide

Alsegard also noted the dual nature of his responsibilities in leading Gallagher’s new practice. Firstly he will look to support his colleagues in providing customers with the best service and insurance solutions available in the IP space. However, he will also be looking to harness the expertise and the scale of Gallagher to provide education to the wider public about IP risk and the services available.

“I think the market is perhaps a little bit underserved in terms of intellectual property risk at the moment,” he said. “There are still only a handful of brokers and underwriters in the space. So being one of the few means it is very important that we get the message out there.”

It’s the right time to be going out to the market with this message, he said, as over the course of his time in the IP space, he has seen external market conditions change dramatically. That starts with the sheer quantity, quality and accessibility of data now, as well as the new tools and techniques available to analyse that data. That has changed the market fundamentally, but Alsegard is also seeing that the companies now coming to the market are more educated about IP risk and aware of its potential impact.

“It’s now much more common across the board of many companies to hear people talking about intellectual property,” he said. “These [companies] come from all sectors, which helps to grow the market, of course, but it also helps to potentially reduce the volatility, because we get more of a spread of risk, which is really helpful.

“Also, if we talk about changing risk, the pandemic has changed the perception [of IP risk] a little bit as well, in the short term. US patent litigation increased from early 2020 and the reason for that is likely the economic downturn and the uncertainty that the pandemic created. If I was to guess, I would suggest that this will carry on for some time and that patent litigation will continue to be at a heightened level. So that may increase the number of companies coming to market to seek insurance as well.”

Read more: ‘Misconceptions’ clouding growing IP risk

The publicly available figures around IP litigation are just the tip of the iceberg, he said, as very often IP infringements are handled behind closed doors. This is part of the reason why the time is right not just for the launch of this dedicated IP practice from Gallagher, but also for advanced conversations across the marketplace on the need for adequate protection.

“I want to make sure that people are aware of what is available, and aware of [IP risks],” he said. “It’s really important that companies make decisions proactively rather than reactively. That includes finding out about the insurance services available and what the cost of these are, rather than not buying coverage because you didn’t know it existed. And the same goes, to a large extent, when it comes to risk management and IP because I think some companies underestimate the risks that they face until they have an issue. So, it’s really worth exploring this area with the experts and seeking out that proactive professional advice.”

Source

According to JLU, the new policy’s wordings respond to new and emerging risks resulting from the pandemic, which will allow brokers to build flexible and customized travel cover for their clients. 

The MGA offers annual multi-trip policies that brokers can quickly bind or renew through its online portal. Producing a travel pattern is not required, so brokers only need to know the number of trips per annum.

The policy, which is underwritten by Ergo Travel Insurance Services Limited on behalf of Great Lakes Insurance, covers incidental holidays for all employees, as well as family members of directors/owners covered while accompanying them on business trips, including incidental holidays.

Upon referral, JLU will look at extending cover for travel to destinations against Foreign, Commonwealth & Development Office (FCDO) advice, as long as the advice limits travel to essential purposes due to COVID-19.

The product’s launch comes after JLU took over the British Insurance Brokers’ Association-endorsed Holiday Travel Plus and Sports Travel scheme for a three-year period. Travel specialist Dipesh Patel also recently joined the company as senior travel underwriter.

“Employers have a duty of care towards any employee travelling on behalf of the business, and as with many aspects of corporate life post-COVID, that duty of care has changed or been extended,” Patel said. “For example, if the insured, a close relative, a member of their household or a travelling companion or friend with whom they had arranged to stay has a diagnosis of COVID-19 within 14 days of a booked departure date, cancellation of the trip is covered under our policy. If a trip is cut short due to a family member dying from COVID-19, then the policy will cover the cost of returning home early. We also offer additional daily benefit cash payment if the insured has to self-isolate in your holiday accommodation abroad. Our business travel policy offers such extensive and tailored COVID-19 related cover to give employers peace of mind that they are doing everything they can to support their employees whilst travelling on business.”

Source

“At Swiss Re, we’ve always said that we want to be progressive,” said Pasricha. “We are a 158-year-old company. We’re the bellwether, the backstop (whatever you want to call it) of the industry, but we’re also responsible for innovation. As a reinsurer, we take a large part of the risk in the industry. Therefore, we need to be part of the solution and we need to drive and enable innovation.”

Read next: Lloyd’s announces next insurtechs joining innovation program

Swiss Re launched its P&C solutions unit in 2017, with the aim of helping clients to make better underwriting and pricing decisions by using data analytics tools and other technology solutions.

The P&C Solutions unit helps insurers to increase their efficiency, steer their portfolios, and grow into new markets and segments. Its core areas of focus include: P&C analytics, property & specialty, cyber, liability, parametric, automotive & mobility, SwiftRe (online risk placement/management), and innovation.

“The tone at Swiss Re is really set by the top from our group CEO Christian Mumenthaler and all of our executive leadership,” said Pasricha. “They have the vision [which is clear through] Swiss Re P&C Solutions, to say: ‘These are the kinds of things that the industry struggles with, and this is why we want to provide these solutions to the industry.’ I think the ethos of innovation has to be driven from the top.”

One challenge that the insurance industry sometimes struggles to surpass is its inherent conservatism. The industry has to maintain a healthy balance sheet in order to meet its main purpose, but there’s always a possibility that supporting innovation and underwriting emerging risks could cause some financial turbulence.  

“The balance is always: How do you take those baby steps? How do you make progress in the industry, try and test new technology, but still make sure that you’re solid in terms of your underwriting?” Pasricha commented. “That’s the kind of balance that we always strived for at Swiss Re – making sure that the technology we deploy works. We test it and work with our partners to make sure all the kinks are ironed out, and that’s when we launch. It is a big culture and mindset issue, but we’re also very actively being clear that we will strive for that balance.” 

Read more: Genasys’ co-CEOs on what the UK insurance industry is calling out for

It’s all about sustainability, Pasricha added. There are some innovators in the insurance industry – in fact, all industries – who deliver innovation hype, but cannot sustain their activity to deliver innovation success.  

“If you can’t sustainably produce good underwriting results, it doesn’t work and you’re not helping the industry,” said Pasricha. “If you’re in the business of creating flash in the market – creating brand, hype, and customer pull – and then trying to get sold and create lots of money for private equity, OK, that does work. But if you’re going to be sustainable, you need to make sure you’re solid on underwriting, and that takes a lot more work.”  

Source

MS Amlin Underwriting Limited (MS AUL) has appointed Julie Hopes to its board as an independent non-executive director.

Hopes will also assume the role of chair of the risk and solvency committee later this year, a statement from the company said. She will take over from Gilles Bonvarlet, who is retiring from the MS AUL Board after over eight years as director.

Source

Aon has been appointed to provide its new investment service for captive insurers to the Noble Insurance Company DAC, the Ireland-based captive insurer of food and beverage giant Kraft Heinz. Aon works with Goldman Sachs to deliver the service, which aims to make it simpler for captive insurers to identify and access appropriate, high-quality and yield-enhancing investments.

Noble provides insurance coverage to the Kraft Heinz Company. Coverage is provided to Kraft Heinz member firms that are domiciled in the European Union, Aon said. Noble is a wholly-owned subsidiary of HJ Heinz Ireland Holdings, which is in turn owned by Kraft Heinz.

Source

Man-made disasters accounted for an estimated US$2 billion in insured losses in the first half. That’s lower than average, likely reflecting COVID-19 restrictions, Swiss Re Institute said.

“The effects of climate change are manifesting in warmer temperatures, rising sea levels, more erratic rainfall patterns and greater weather extremes,” said Martin Bertogg, head of cat perils at Swiss Re. “Taken together with rapid urban development and accumulation of wealth in disaster-prone areas, secondary perils, such as winter storms, hail, floods or wildfires, lead to even higher catastrophe losses.

“The experience so far in 2021 underscores the growing risks of these perils, exposing ever-larger communities to extreme climate events. For example, winter storm Uri reached the loss magnitude that peak perils like hurricanes can wreak. The insurance industry needs to upscale its risk assessment capabilities for these lesser monitored perils to maintain and expand its contribution to financial resilience.”

The report estimated global economic losses from disasters at US$77 billion for the first half. That’s below the 10-year average of US$108 billion. However, the economic loss figure is expected to rise as more losses are accounted for over the next few months. The first half of the year is also not usually representative of the full-year figures, as the third quarter is historically the most prone to natural catastrophe losses.

Of the total estimated economic losses in the first half, US$74 billion were caused by natural catastrophes, while man-made catastrophes accounted for US$3 billion. Nearly 4,500 people were killed or went missing in disaster events in the first half, Swiss Re Institute reported.

Natural catastrophe losses were pushed up by extreme weather events. In February, winter storm Uri – a period of extreme cold combined with heavy snowfall and ice accumulation in the US – triggered estimated insured losses of US$15 billion, the highest ever recorded in the US for this peril. Winter storm Uri accounted for about 38% of all estimated insured losses from natural catastrophes in the first half.

In June, Europe was hit by severe weather including thunderstorms, hail and tornadoes, causing estimated insured losses of US$4.5 billion.

At the end of June, extreme heat broke temperature records in western Canada and the northwestern US, with temperatures reaching more than 115 degrees. The heat, coupled with severe drought conditions, sparked wildfires that moved south to California.

“Climate change is one of the biggest risks facing society and the global economy,” said Jérôme Jean Haegeli, group chief economist at Swiss Re. “The recent analysis from the UN’s Intergovernmental Panel on Climate Change confirms expectations of more extreme weather in the future and urgency to act to limit global warming. Working with the public sector, the reinsurance industry plays a key role in helping to strengthen communities’ resilience by steering development away from high-risk areas, making adaptation investments, maintaining insurability of assets and narrowing protection gaps.”

Source

The Financial Conduct Authority (FCA) said it has received a total of 2,754 allegations of misconduct for the year ended March 31.

According to the FCA’s Annual Report and Accounts 2020/21, the complaints were filed by 1,046 whistleblowers regarding fraud, money laundering and compliance violations. A total of 184 individuals and firms are under investigation for carrying out unauthorised business. The FCA issued a total of £189.8 million in financial penalties, alongside a number of prosecutions for alleged insider dealing, investment fraud or money laundering.

Source

Gallagher has enlisted seasoned legal and aviation expert Nick Hughes (pictured above) as consultant for its global aerospace practice.

According to the international brokerage, Hughes will support client-facing teams by providing legal input to complex insurance coverage, claims and contractual issues. He will also help grow Gallagher’s aerospace client base.

Source

Swiss Re Corporate Solutions has appointed Marilyn Blattner-Hoyle (pictured) as global head trade finance in its global credit and surety unit.

In this leadership role, Blattner-Hoyle will be responsible for the origination and underwriting activities across the trade finance portfolio, focusing on the development of growth opportunities, implementation of Swiss Re’s business strategy and the digitisation of its offering.

Source