7/22/2020 | This week in Business Insurance International Topics… – Editor
INTERNATIONAL Top Stories
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.
The U.S. Geological Survey said that an earthquake of magnitude 6.0 hit the town of Lampa in Peru on May 31, PM News reported citing Xinhua.
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.
Australian regulators have ordered U.K.-based Steamship Mutual Underwriting Association Ltd., the insurer of cargo ship APL England, which lost around 50 containers in rough seas off the coast of Sydney on May 24, to pay $22 million Australia ($15 million) under the Protection of the Seas Act, 9News reports citing Australian Associated Press. The ship was on its way to Melbourne from China and was carrying bar stools, food dehydrators, medical face masks, shields and goggles, furniture, range hoods, gazebos and cat furniture.
The Society of Motor Manufacturers and Traders has said that the COVID-19 pandemic is expected to cost the U.K. car industry up to £12.5 billion ($15.4 billion) in revenues in April, Yahoo reported citing BBC. Only 197 premium and luxury sports vehicles rolled off factory lines during the month, compared with the pre-pandemic level of 400,000 cars.
Turkish steel producer Koc Metalurji AS has extended the suspension of operations at its plant in the city of Osmaniye for another month and will not produce crude steel in June, Steel Orbis reports. The steelmaker halted its crude steel production on April 7 due to the COVID-19 pandemic.
The U.S. Geological Survey has said that an earthquake of magnitude 5.5 struck off the coast of Mexico on May 24, UrduPoint reports. No tsunami warning was issued following the quake.
A report said that South Korea-based Samsung Electronics Co. Ltd.’s smartphone shipments plunged 18% year-over-year to 59 million units in the first quarter due to the coronavirus pandemic, Yonhap News Agency reports.
Brazilian securities regulator has launched investigations into reinsurer IRB Brasil Resseguros SA for potential liquidity issues, Reuters reported. One of the probes will focus on an 8% drop in IRB’s shares on Feb. 3, and the other will look into the reinsurer’s financial statements, taking into consideration potential problems cited by asset manager Squadra Investments, which has a short position in IRB.
The government of the Indian state of West Bengal said that cyclone Amphan has caused around 1 trillion Indian rupees ($13.3 billion) worth of damage, The Telegraph reported. Local insurers have said that they would pay property claims related to the cyclone, which hit India and Bangladesh on May 20 and caused widespread damage.