HFW Insurance Bulletin: June 2019 Edition 1

Climate, Environment, Insurance and Reinsurance, Legal — By on June 15, 2019 at 3:40 PM

Costas Frangeskides
Partner
Holman Fenwick Willan LLP

HFW Insurance Bulletin: June 2019 Edition 1

In this issue: Regulation and legislation; Court cases and arbitration; Market developments

1. Regulation and legislation

The PRA has imposed a penalty of over £1 million on an independent bank for breaches relating to the outsourcing of critical services. The outcome of the PRA’s investigation into the bank’s outsourcing risk management and incident response has implications for insurers and intermediaries across many areas of governance.

The PRA is continuing to publish papers on the impact of climate change on the financial industry and how it expects firms to respond.

2. Court cases and arbitration

In Euro Pools v Royal & Sun Alliance, the Court of Appeal considered the scope of a policyholder’s notifications of circumstances for coverage for remedial works to mitigate potential claims.

3. Market developments

  • England & Wales: IUA publishes two new model cyber exclusions
    Cyber risks create issues which many insurers may wish to exclude under their standard policies. However, some insurers have found that their policies unintentionally cover cyber losses, because the wording is “non-affirmative” or “silent” on cyber cover. The Prudential Regulation Authority (PRA) has recently expressed concerns about lack of clear insurance cover for cyber risks, and called for greater clarity of wording and specific limits of cover. To address these issues, the International Underwriting Association (IUA) has published two new model cyber exclusion clauses: IUA 09-081 and IUA 09-082.

For further information please contact the authors of this bulletin.

 

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