6/11/2020 | This week in Business Insurance Risk Management Topics, Lawmakers consider bill to limit liability in pandemic which would help insurers facing a tide of claims. Meanwhile, a Coronavirus-related suit against Fox News dismissed and Insurtech deals up, funding down amid pandemic: Willis – Editor
U.K.’s Prudential Regulatory Authority plans to assess its policy related to insurance-linked securities and insurance special purpose vehicles for changes as the Brexit transition proceeds, Artemis reports. The extension of the transition, which is set to run until the end of this year, will create uncertainty for ILS and reinsurance players. This could hinder getting potential insurance and reinsurance sponsors onboard, as well as investor interest in the country’s ILS infrastructure.
Mexico’s aviation industry could lose up to $6.4 billion due to the coronavirus pandemic, Simple Flying reported. The figure reflects a 45% decrease compared with the revenue generated last year.
The Geophysical Institute of Ecuador said that Sangay volcano spewed ash on June 9 blanketing towns across two provinces, Xinhua reported. The volcano sent clouds of ash over the towns of Guamote, Alausi and Cebadas in central Chimborazo province and communities in Guayas province.
A massive fire broke out at a leaking natural gas oil well in the Indian district of Tinsukia on June 8, Jagran Josh reports. The oil well, which is owned by Oil India Ltd., has been leaking natural gas since May 27 following damage. Officials said it could take at least four weeks to control the fire.
Bermuda-based Aspen Insurance Holdings Ltd. is reviewing its corporate policy on climate change as Indian conglomerate Adani Group’s Carmichael project’s losses have grown to nearly $800 million due to effects from the coronavirus pandemic, Moneycontrol reports citing The Sydney Morning Herald. Significant impact on the valuations of the coal mine and rail project in the Australian state of Queensland could increase Carmichael’s dependence on parent firm Adani, Aspen Re said.
Corneille Karekezi, chief executive of Nigeria-based African Reinsurance Corp., expects the COVID-19 pandemic to negatively affect the reinsurer’s business until next year, Middle East Insurance Review reported. Insurers in more mature African markets may face greater problems as event cancellation and business interruption covers are not commonly sold there, Mr. Karekezi said.
German insurers have proposed a more than €10 billion ($11.2 billion) public-private fund to help companies deal with business interruptions from future pandemics, Reuters reports citing Der Spiegel. Contributions from insurers, businesses, catastrophe bonds and governments will finance the fund.
Storm Amanda, which lashed El Salvador and Guatemala on May 31, caused floods and power outages, Daily Sabah reported citing Agence France-Presse. Nayib Bukele, president of El Salvador has declared a state of emergency in the country, while landslides and floods blocked roads in Guatemala.
Data from the Australian Prudential Regulation Authority showed that general insurers reported a $1 billion Australia ($663 million) loss in the first quarter, the first combined quarterly loss in nearly two decades, Reuters reports. The losses were due to the coronavirus pandemic and rise in claims related to bushfires.