Tuesday, 29 July 2014


European companies should prepare for sectoral sanctions in Russia

The alleged shooting down of a Malaysia Airlines Boeing 777 civilian aircraft killing all 298 people on board could spark another round of sanctions, making life yet more difficult for multinational companies with interests in Russia.

Buyers welcome changes to UK contract law despite last minute watering down of Bill

The most significant changes to UK insurance contract law in over 100 years are on track to become law next year, although two significant proposals were dropped, effectively watering down the Bill now before parliament.

Malaysia Airlines loss to force adjustment in aviation market

The tragic loss of the Malaysia Airlines flight over Ukraine last week could halt almost a decade of price reductions for airline insurance. However, huge improvements in airline safety and competition among insurers means that any market reaction would probably be short lived.

Ferma and Insurance Europe warn against stricter ELD regulations

Ferma and Insurance Europe, the insurance and reinsurance federation, have both told Commercial Risk Europe that they are against the introduction of a pan-European mandatory financial security scheme to cover Environmental Liability Directive (ELD) risks ahead of a review of the directive later this year.

Cyber risk and transfer needs overhyped says Germany's Funk

Broker Funk has criticised certain German insurers, brokers and risk managers for overhyping cyber risk and the need to transfer this supposed threat. Its managing partner believes insurance products are not best aligned with customer needs and argued that physical risk management is the better solution.

TRIA renewal moves closer following US Senate vote

The latest renewal of the US Terrorism Risk Insurance Act (TRIA) took another step forward last week as the Senate approved its bill that would see the government terrorism insurance backstop extended for seven years. With a House bill also making legislative progress, insurance buyers and their risk transfer partners are encouraging a swift agreement between the two chambers to ensure global business benefits from stable and affordable terrorism coverage.

Terrorist attacks down but fatalities 30% above yearly average finds Maplecroft

Global terrorism fatalities during the last 12 months were 30% above the five-year average with the risk of attack increasing most significantly in China, Egypt, Kenya and Libya, according to Maplecroft's Terrorism and Security Dashboard (MTSD).

French government focuses on business continuity plans to mitigate flood risk

Large French companies could enjoy a boost in risk management at suppliers following their government's new flood mitigation plan that aims to encourage SMEs to bolster business continuity management. But experts warn that further incentives are needed to help companies fully address flood risk.

Capital markets closing in on corporate risk; outlook mixed

The prospect of the arrival of fresh capital provided by hedge funds and other investors into the primary corporate risk market has been met with a mixed response by risk managers polled by Commercial Risk Europe in recent weeks.

Corporate round-up

Aon expands travel risk mitigation service with new data capture system, AIR Worldwide releases updated Earthquake Model for Canada, Guy Carp appoints new head of EMEA and International P&I Business, Sportscover Europe adds to London underwriting team and York International grows financial lines capabilities in London.

Global banks to face US$250bn fines by 2020 as big data bolsters regulatory toolkit: Anomaly42

As the use of big data spreads, global banks could face total fines of up to US$250bn by 2020 for breaking anti-money laundering (AML) rules, data provider Anomaly42 warned this week.

Ferma's Michel Dennery gives further details on certification plans

Following news last week that Ferma has given the go ahead to its risk manager certification scheme, the federation's vice-president gave further details on the initiative to Commercial Risk Europe.

Rims' Mary Roth named president of Ifrima

The International Federation of Risk and Insurance (Ifrima) has appointed RIMS' executive director Mary Roth as president. She takes over the reins from Ferma board member Carl Leeman.

JLT launches cyber attack simulation tool to grab CEOs attention

JLT has teamed up with Professor Dr Marco Gercke, who works as an adviser to different international organisations, such as NATO, national governments and big corporations, to provide a stress-testing simulator that takes C-suite executives through a custom-made cyber attack.

Plans to reduce pollution threaten French companies

The implementation of mandatory anti-pollution plans in France threatens the survival of companies located near potentially dangerous industrial sites, warns an association of local government officials.

Insurance market M&A

Brokers, analysts and the insurers and reinsurers themselves keep telling everyone that will listen that the international insurance and reinsurance industry is currently over-capitalised. But at the same time corporate risk and insurance managers complain that the industry is barely scratching the surface of its risk transfer needs and that its cost-laden, traditional line of business approach prevents it from meeting their real demands. John Charman, Chairman and CEO of Bermuda-based Endurance Specialty, believes that consolidation is the answer. He is literally prepared to put his money where his mouth is and bought a $30m stake in Endurance when he took the helm last May. He has reorganised and refocused Endurance for further growth and has now made an audacious and contested bid for rival Bermuda insurer Aspen to fast track the process. Commercial Risk Europe Editor Adrian Ladbury investigates what lies behind the proposed deal and what potential implications it has for the wider market.