Insurance & Reinsurance

Recent Articles

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  28/11/2024

  United Kingdom

  Insights on contribution claims under the 2010 Act from Riedweg v HCC International Insurance Plc & Anor

  The decision in Riedweg v HCC International Insurance Plc & Anor [2024] EWHC 2805 (Ch) provides critical guidance for insurers on potential contribution claims or recovery actions where there is a claim against them pursuant to the Third Parties (Rights against Insurers) Act 2010 (2010 Act).BackgroundThe case of Riedweg concerned a professional negligence claim brought by Nicole Marlene Riedweg (the claimant). The claimant alleged that Goldplaza Berkeley Square Ltd (Goldplaza) had negligently overvalued a property she contracted to purchase for £8 million in December 2016.  The claimant...

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  21/11/2024

  United Kingdom

  Critical third parties: final policy and rules demonstrate a welcome cooperation between regulators and industry

  The new critical third parties (CTPs) regime comes into force from 1 January, 2025 and will be hugely significant for designated CTPs to the UK financial sector.The policy statement issued jointly by the Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA) and Bank of England (PS24/16/PS16/24) provides feedback to responses received to the consultation paper earlier this year.Overall, the finalised rules have focused this expansion of the regulatory perimeter on the most systemic risks to the financial industry presented by CTPs.ClarificationThe new rules offer some helpful...

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  20/11/2024

  United Kingdom

  Mansion House Speech: Points of interest for the insurance sector

  The Chancellor, Rachel Reeves, delivered her first Mansion House speech on 14 November. The message was clear – the Government wants to achieve secure and sustainable economic growth, and competitiveness and growth in the UK’s financial services sector is key. Regulatory changes made after the financial crisis to eliminate risk-taking have ‘gone too far’: “the UK has been regulating for risk, but not regulating for growth…now is…the moment to rebalance our approach”. There is a push for the regulators to focus on this and the PRA and FCA have...

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  20/11/2024

  Switzerland

  Understanding Warranty and Indemnity insurance

  FR

  Understanding Warranty and Indemnity insuranceWhat is W&I insurance?Warranty and Indemnity (W&I) insurance is an insurance product commonly used in M&A transactions, which is designed to protect the insured against financial losses resulting from breach of warranties and certain indemnities granted by the seller in the transaction documents of an M&A deal.Why is W&I insurance taken out?In an M&A deal, the buyer typically asks the seller to provide various representations and warranties in the sale and purchase agreement covering the target's legal status, financial statements,...

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  11/11/2024

  United Kingdom

  FCA Survey on Non-Financial Misconduct has Lessons for Firms

  The Financial Conduct Authority (FCA) has published the findings of its comprehensive survey on non-financial misconduct within the wholesale financial services sector. The survey covered incidents from 2021 to 2023. The targeted portfolios included London market insurers, market intermediaries, wholesale banks, and wholesale brokers.Although many of the survey results are positive and demonstrate that firms are addressing incidents of non-financial misconduct, some gaps remain. The message from the FCA is that non-financial misconduct is a priority area and that a firm’s response to non-financial...

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  04/11/2024

  Netherlands

  Netherland’s court rules insurers must investigate and act in a timely manner for violations of duty of disclosure

  A 23 July 2024 ruling by the Dutch court of appeal (ECLI:NL:GHSHE:2024:2400) addressed the obligations of insurers when an insured violates the pre-contractual duty of disclosure under Dutch law. The case concerned an insurer's claim of breach of the insured's duty of disclosure for failing to disclose diabetes on a health certificate. The court of appeal dismissed the claim even though the insurer relied on non-disclosure within the prescribed two months of the discovery. The court found that the insurer breached its duty to investigate, and as a result its reliance on non-disclosure was unacceptable...

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