It has been more than a decade since blockchain – or distributed ledger technology – appeared on the financial services landscape. Yet, it is still capable of generating excitement as its value in transforming processes continues to develop. As blockchain increases its reach and its impact in specific industries grows, this will generate a need for suitable models of insurance. Cayman-based technology companies have expressed interest in buying insurance from local insurers.
A recent Hamm Higher Regional Court decision concerning insurers' duty of advice continues the previous case law in respect of partly favourable and partly unfavourable new conditions or conditions that are merely more favourable for the policyholder. The case highlights the question of whether insurers have a duty to advise assureds of amendments made to the general terms and conditions in their insurance policies, particularly with regard to linguistic amendments.
In terms of premium revenue, China is the second largest insurance market in the world. However, regulators and insurers are often frustrated due to a lack of insurance innovation. In response to such frustration, litigation property preservation liability insurance has emerged and become a typical insurance solution to satisfy market demand and address unique Chinese insurance requirements in order to align them with the country's judicial system.
Insurance subrogation is an important legal mechanism which enables insurers to reduce their losses after insurance indemnities are paid. However, opinions differ as to the application of reinsurers' right of subrogation. This article answers questions which frequently arise in this regard from a Chinese perspective.
The Institute for the Supervision of Insurance (IVASS) recently launched a public consultation on two separate documents containing additional rules implementing the local and EU laws on insurance distribution (and other ancillary provisions). The first consultation document relates to product oversight and governance, while the second introduces changes to existing IVASS regulations.
Insurance subrogation is an important legal mechanism which enables insurers to reduce their losses after insurance indemnities are paid. However, opinions differ as to the application of reinsurers' right of subrogation. This article answers these questions from an international perspective.
The Federal Court of Justice recently ruled on the appropriate jurisdiction regarding a head carrier's insurer's direct claim against subcarriers' liability insurers. The first and second instances had affirmed their international jurisdiction and admitted the direct claim against the liability insurer on the basis of Article 31(1)(1)(b) of the Contract for the International Carriage of Goods by Road. The Federal Court of Justice confirmed this approach.
Health insurance products have seen an improved uptake recently and there appears to be a significant focus on rewarding policyholders for preventive and wellness habits, with a specific focus on forthright disclosures made in policy documents and advertising material. With changes introduced under amendment regulations and the expected issuance of draft mediclaim guidelines, it appears that a more comprehensive wellness regime will shortly be introduced to the Indian insurance market.
The Insurance Regulatory Development Authority of India (IRDAI) recently notified the Indian Insurance Companies (Foreign Investment) Amendment Rules 2019 and the IRDAI (Insurance Intermediaries) (Amendment) Regulations 2019, which have introduced additional conditions with which insurance intermediaries that have a majority shareholding of foreign investors must comply. The regulations have brought much-needed clarity, but the insurance industry's reaction remains to be seen.
The Bremen Court of Appeal recently held that the proximate cause of a vessel's grounding after its main engine had cut out was the bad weather, rather than the engine problem. Further, the insurer's right to request information from the assured was limited to information relating to the proximate cause and did not extend to remote causes. This decision is highly questionable in respect of both causation and insurers' right to information.
As the insurability of administrative fines is not specifically provided for by the Insurance Contract Act, it may not be prohibited per se. Nonetheless, the industry is reluctant to offer insurance cover for administrative fines. Given the increasingly high penalties that can be imposed by administrative authorities following the entry into force of the EU General Data Protection Regulation, a legislative response would be appreciated at a supra-national level.
Almost four years after the implementation of the EU Solvency II Directive in Sweden, insurers are still devoting significant resources to identifying, understanding and putting into practice the complex regulatory legislation governing outsourcing arrangements. This article outlines some of the Swedish Financial Supervisory Authority's recent clarifications and comments on outsourcing and the main requirements surrounding insurers' outsourcing arrangements.
The general position that bankruptcy can substantially vary the rights of insureds has often been argued and rejected. A recent Ontario Superior Court of Justice decision has confirmed that an insurer's duty of good faith is not extinguished on the bankruptcy of the insured.
The Ontario Court of Appeal recently held that an insurer which had defended its insured for 10 months, without a reservation of rights, could not rely on a policy exclusion to withdraw its defence. In this decision, the court did not find it necessary to distinguish between waiver and estoppel. As such, insurers and insureds alike should ensure that they appreciate the potential consequences applicable to both waiver and estoppel and govern themselves accordingly.
Employees injured at work are compensated by the National Institute for Insurance against Accidents at Work (INAIL), but can also bring an action before the civil courts against their employers or other liable third parties for damages not covered by INAIL. However, the criteria that the courts should follow to quantify so-called 'differential damages' remain unclear, which is relevant for third-party liability insurers exposed to indemnification claims arising from INAIL's recourse actions.
The recently published act to transpose the General Data Protection Regulation into Portuguese law was expected to provide specific grounds for the processing of health data for insurance purposes. However, the act was approved without any exemptions or provisions regarding the legitimate basis on which insurers can process health data (or any other special category of data) for insurance purposes. This article examines the implications of the new law for the insurance industry.
Employees in Israel are automatically insured for work accidents by the National Insurance Institute (NII). Until recently, if an insured filed a claim against a third party and the claim was settled, such a settlement was perceived as an admission of liability with regard to the NII's subrogation. A recent Tel Aviv District Court judgment has changed this perception.
The Dusseldorf Higher Regional Court has ruled on the insurance law aspects of recourse claims against subcarriers. This decision demonstrates that an insured's entitlement to claim compensation can be safeguarded if the insurer supplies a written declaration authorising the insured to continue the recourse proceedings, irrespective of whether the insurer has compensated the insured.
Since 2015, foreign investment in insurers and insurance intermediaries has been capped at 49%. However, many felt that this parity in the foreign direct investment (FDI) limits was unfair, as – unlike insurers – insurance intermediaries are not custodians of policyholders' money. Thus, the recently notified Indian Insurance Companies (Foreign Investment) Amendment Rules 2019 have effectively increased the limit on FDI in insurance intermediaries to 100%.
The Insurance Regulatory and Development Authority (IRDAI) recently issued the IRDAI (Regulatory Sandbox) Regulations 2019, which aim to facilitate the creation of a regulatory sandbox in which to test new business models, processes, proposals and applications in order to strike a balance between the orderly development of the insurance sector and the protection of policyholders' interests. Although insurance players are calling the sandbox a game changer, it remains to be seen how much it will be used.