7/22/2020 | This week in Business Insurance International Topics… – 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.
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 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.
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.