insurance law experts
DESCRIPTION
Insurance Law ExpertsTRANSCRIPT
The importance of insurance as a key element in both the domestic and workplace environment is self-evident. Ongoing world events have also continued to shape the makeup of insurance. Terrorism in Mumbai and off the Somalia coast has altered the insurance industry’s scope of services, emphasising the need to provide cover against terrorist attacks. Elsewhere, regulation governing Australia’s insurance industry has also been impacted by recent disasters, both natural and man-made in nature. In November last year, US regula-tors indicated their intention to press Barack Obama on Bermuda’s insurance industry once he takes office.
However, the main factor has undoubtedly been the ongoing financial turbulence affecting economies worldwide. The shortage of credit has exposed longstanding weaknesses in various companies and industries, leading to revaluations in insurance and reinsurance contracts. Closer to home, the suspension of trade credit insurance has affected many of the UK’s business operations. It has already claimed Woolworths, as the high street retailer was forced into administration after its insurers refused to cover the store’s supplies. As a result, Woolworths had to draw upon its already abused credit facilities to pay off suppliers, bringing it to the limit of what its bank-ers were prepared to lend.
In addition, just this month insurance giant Legal & General an-nounced that it is shedding up to 560 jobs across the UK as part of a drive to cut its workforce by 10%. Like most insurance companies, L&G has been hit by the financial and economic turmoil. It made a loss of nearly £1.5 billion last year, mainly due to falling share prices. On the other side of the pond, American International Group (AIG) has received assistance from the US government in the shape of a bailout package that has gradually crept up to total over $170 billion. The company was deemed to be too extensively intertwined with the global financial system to be allowed to fail.
Jolted by these events, many countries have passed recent legisla-tion to amend their respective regulations governing the insurance industry and the provision of insurance/reinsurance services in general. For example, the English and Scottish Law Commissions are setting up a joint review of insurance contract law to examine at least two key areas of insurance contract law: non-disclosure, which
will necessarily include misrepresentation, and breach of warranty. Additional areas such as the law on insurable interest and joint policies are also in the pipeline to be reviewed.
Insurance contract law in Scotland is broadly similar to that in England and Wales. There are, however, some important differences. For example, in Scot-land a policyholder may be able to claim losses caused by an insurer’s unjustifi-able delay in settling a claim, whereas in England this is not possible. There is also a different test for materiality in life insurance cases in Scotland.
Ernst & Young’s 2009 Insurance Outlook for Europe notes that European in-surers will face enormous challenges in 2009 as Europe heads into a recession. However, the report does claim that there are opportunities to capitalise on innovative products in areas such as health insurance and retirement income.
Health insurance in particular presents accelerated growth opportunities in Europe for 2009, for both life and non-life companies. The report states that in order to achieve quality and cost-containment objectives the market will need to consolidate, and governments have already started to look to private insurers to achieve these goals.
Central and Eastern European insurance markets are projected to grow, but at a slower pace. Ernst & Young advises that insurers should focus on simple and transparent protection products, such as savings, endowment and health. Longer term, demand will increase for property-casualty insurance and for reinsurance for natural catastrophes and commerce, such as shipping, ports and pipelines.
In April this year the EU adopted the Solvency II insurance regulatory frame-work, which aims to enhance policyholder protection and increase competition in the EU insurance market by updating the approach taken to determine the capital an insurance undertaking should hold against unforeseen events. The Directive also aims to enhance the supervisory review process.
Solvency II is expected to introduce a common European approach based on economic principles for the measurement of assets and liabilities. In order to meet its objectives, it will need to be a risk-based system, meaning that risk is measured on consistent principles and that capital requirements are aligned with the underlying risks of the company.
In the current environment insurance lawyers are tasked not only with keep-ing up to date with the myriad changes taking place in international insurance law, but also with applying the law frequently, and to increasingly complex cases. Over the page Corporate International highlights some prominent insur-ance lawyers from around the world who are able to do just that.
Insurance Law
May 2009 Corporate INTL 103
Insurance Law
45
6
37.8
109
11
12
2
1
0802
01Canada - Torys LLP
Blair W. KeefeT: 416.865.8164F: [email protected]
United States - Adorno, Yoss, Alvarado & Smith P.C.
Patrick A. Cathcart213 [email protected] www.adorno.com
03
Serbia - IKRP (Belgrade) IKRP Rokas & Partneri DOO
Marija Petrovic - Partner(+381 11) [email protected] www.rokas.com
Australia - RichardJowett
61 (0)3 8601 [email protected]
10Israel - Naschitz, Brandes & Co.
Peter Gad Naschitz+972 3 623 [email protected]
Greece - IKRP (Athens) I.K. Rokas & Partners Law FirmAlkistis Marina Christofilou, LL.M. (Lond) -Deputy Managing Partner(+30) 210 [email protected]
07
11Australia - Holman Fenwick WillanRichard Jowett
[email protected] (0)3 8601 4500www.hfw.com
12
Singapore - Rajah & Tann LLP Quentin Loh, S.C. - PartnerDID: +65-6507 9511Fax: +65-6438 9622Main Line: +65-6507 [email protected]
06 09Cyprus - Georgiades & Mylonas - Advocates & Legal ConsultantsYiannos G. Georgiades 0 - Managing PartnerRebecca E. Howarth - Legal Consultant & Advisor00 357 22 819 [email protected] [email protected] [email protected] / wwvw.gmadvocates.com
The Netherlands - Van Steenderen MainportLawyers B.V.
Arnold StendahlT: +31 10 266 78 [email protected]
04
05Sweden - Advokatfirman Vinge KBPer Johan EckerbergPartnerD: +46 8 614 3119 T: +46 8 614 [email protected]
Germany - Nörr Stiefenhofer Lutz
Michael Molitoris+49 89 286 28 146+49 89 28 01 [email protected]
32
1
Insurance Law Insurance Law
104 Corporate INTL May 2009 May 2009 Corporate INTL 105