Insurance focus

In this edition of Insurance Focus we consider the growing need for insurance companies to take an holistic approach to managing the risks posed by climate change. For many years insurers have been expert at understanding how the weather may impact claims, but regulators are now expecting insurers to consider how the changing climate will impact both sides of the balance sheet.

In Italy, new insolvency laws that are designed to support the maintenance of goodwill look set to impact D&O policies; lawyers from our Milan office discuss the likely impact of the new code.

The ‘fairness revolution’ in Australia continues in the aftermath of Commissioner Hayne’s Royal Commission report.  A new contract terms regime to ensure the greater protection of consumers will require a review of existing policy terms.

As China increasingly opens up financial markets to foreign investment, lawyers from our Shanghai office summarize the requirements for operating in the newly liberalized Chinese insurance market.

Our regular case notes section discusses the first case to consider the Insurance Act 2015 and the recent shock in the portfolio transfer market when a UK judge refused to sanction a ‘Part VII’ transfer of annuity business.  Also in the UK, the Court of Appeal has recently reviewed the practice of ‘spiking’ mesothelioma liabilities within a policy period. From the Supreme Court in New South Wales we report on a recent case that considers whether section 54 of the Insurance Contracts Act can assist insurers where the insured could not reasonably know of circumstances that might give rise to a claim. Finally, we consider a 2019 decision of the Court of Justice of the European Union that considered the meaning of the Solvency II Directive in respect of location of risk.

We also include a number of short summaries of interesting developments from different jurisdictions.

In this issue

• Climate risks become major regulatory concern for insurers
• New Italian insolvency law will impact D&O coverage
• The ‘fairness revolution’ in Australia continues: Government releases draft legislation extending unfair contract terms regime to insurance
• All change for foreign investment in the Chinese insurance sector
• Case notes: Scottish Court decides first Insurance Act 2015 case
• Case notes: Part VII judgment puts UK life-transfers in the spotlight
• Case notes: Landmark ruling on mesothelioma claims in UK Court of Appeal
• Case notes: Section 54 cannot cure what you didn’t know or didn’t exist
• Case notes: Insurance Premium Tax on cross-border M&A insurance: ECJ decision on location of risk
• International focus: Share update, or development from our global team