HM Treasury Consults on Amendments to Insurer Insolvency Regime

Recent proposals to amend insolvency rules applying to insurers aim to enhance and clarify existing powers for a court-ordered write-down of an insurer’s policy and other contractual liabilities under section 377 FSMA. Other proposed measures include: a moratorium on certain contractual termination rights in service contracts and financial contracts to which insurers are party; a … Read more

InsurTech – Ready to Deliver on its Hype?

With three UK based InsurTech companies earning “unicorn” status in 2021, the UK InsurTech market has the potential to be one of the most dynamic in the world. However, investment and impactful innovations in the insurance sector have so far been primarily focussed on small business and personal lines, as well as improving the efficiency … Read more

FCA final rules on general insurance pricing practices – “At a glance” guide

The FCA has implemented a package of remedies to address problems identified in its market study looking at pricing practices in home and motor insurance markets.  “Price walking”, a practice which means that existing customers can pay considerably more at renewal of their policies than new customers for the equivalent cover, will be prohibited. Read more

Article published – Insurance and insolvency

The pandemic has plunged many previously healthy businesses into or close to insolvency, with serious implications for both the company itself and its commercial counterparties. Fiona Treanor, Antonia Pegden and Alexander Oddy have written an article for In-House Lawyer magazine which outlines some of the key insurance issues which should be considered by in-house lawyers … Read more

Court of Appeal rules on test for inducement pre-Insurance Act 2015

The Court of Appeal has dismissed the insurer’s appeal in Zurich Insurance Plc v Niramax Group Ltd [2021] EWCA Civ 590. Upholding the first instance decision of Cockerill J (discussed in our earlier blog post here), the Court of Appeal held that the insured’s non-disclosure of material facts had not induced the insurer to renew … Read more

Article published – Insurance items on the board’s agenda for 2021

The past 12 months have been unprecedented, with many organisations grappling with the pandemic and its impact to their business.  But it isn’t just Covid-19 that is on the agenda for many boards, there are a number of other emerging risks that should be top of mind, from an insurance perspective, including: the wider implications of … Read more

Court finds credit risk cover in marine policy and considers a broker’s duties at placement

In ABN Amro Bank N.V. v Royal & Sun Alliance Insurance plc (and others) [2021] EWHC 442 (Comm), the Court found that an “unusual” and “unprecedented” clause provided credit risk cover in an all risks marine cargo policy. This lengthy decision explores a number of issues including construction of policy wordings, rectification and estoppel, non-disclosure and misrepresentation, as well as the duties of an insurance broker. In particular, the judgment considers the extent to which a broker is under a duty to explain the meaning of particular clauses to insurers. Read more

Insurance Disputes Podcast – Episode 1: The Supreme Court Covid-19 Test Case

We have just released the first edition of our Insurance Disputes podcast, in which we look at the Supreme Court’s judgment in the FCA’s Covid-19 Business Interruption insurance test case. This episode is hosted by Sarah Irons, a Professional Support Consultant in our insurance disputes team, who is joined by Paul Lewis, who led the Herbert Smith Freehills team who acted for the FCA in the test case. Read more