International P&C insurance news: October 2020
Here is a round-up of recent international insurance news from Canada, Germany, China, and more.
Editor’s Note: Here is a round-up of recent property & casualty insurance news from outside the U.S.
The U.K.’s markets regulator, the Financial Conduct Authority, announced plans to overhaul the way insurers price home and car coverage in an effort to save consumers 3.7 billion pounds ($4.7 billion) over 10 years, Bloomberg reported. The proposed changes would ensure renewal clients pay no more than new clients for the same coverage and will also make it easier for customers to stop automatic policy renewals.
A German court has ruled that insurer Versicherungskammer Bayern has to pay 1.01 million euros ($1.18 million) to the owners of Augustinerkeller for a claim of business losses caused by COVID-19 lockdowns, Reuters reported. Augustinerkeller is one of the largest beer gardens in Munich.
Aviva announced that it will sell control of its Singapore business for $2 billion and is also pursuing a potential sale of its French unit that’s valued at about $3.5 billion, Bloomberg reported.
Canadian law firm Samfiru Tumarkin LLP launched a national class-action lawsuit against TD Insurance over its denial of travel insurance claims following COVID-19-related trip cancellations. The suit alleges that TD denied claims for reimbursement of travel expenses on the basis that claimants were offered credits or vouchers.
Lloyd’s of London released a new COVID-19 loss estimate that predicts it will pay about 5 billion pounds ($6.5 billion) in pandemic-related claims.
China’s general insurance industry is predicted to grow by 3.8% in 2020 — down from the 5.7% growth registered in 2019, according to GlobalData. Sangharsan Biswas, an insurance analyst at GlobalData, said in a statement: “Despite signs of recovery, the Chinese economy continues to grapple with sluggish business activity as new cases of infection are being reported. The recent floods will further dampen economic growth, resulting in lower premium growth for general insurers.”
More than 60% of small and midsize employers in the U.K. are “slightly concerned,” “very concerned” or “extremely concerned” about staff contracting COVID-19, according to a survey by GlobalData.
The African Risk Capacity Limited announced a partnership with the InsurTech Pula to deliver agriculture index insurance products to protect African farmers from climatic risks, including drought, excessive rainfall, pests and diseases, and other perils.
German insurer Munich Re announced that it has stopped selling pandemic business insurance coverage. The company is considering whether or not to include pandemic protection in future property and casualty insurance policies but will continue to offer the cover in life and health policies.
Zurich Insurance Group has sponsored a reforestation project in Brazil to help convert barren farmland back into the native Atlantic Forest. The eight-year project includes planting 1 million native trees in collaboration with non-profit Instituto Terra.
Spanish insurer Admiral Seguros is now the first in the country to use artificial intelligence (AI) to create damage valuations and generate an offer of immediate payment on auto insurance claims through an app developed by Tractable.
The Asia-Pacific motor insurance market is expected to grow from $227.1 billion in 2019 to $257.8 billion in 2023 at a compound growth rate of 3.2%, says GlobalData. The growth is supported by an increase in demand for new vehicle sales from the rapidly growing middle-class population.
Bloomberg reported that U.K. insurer Liverpool Victoria (LV=) is in exclusive talks with Bain Capital LP over a potential deal. Earlier this year, bids for a potential acquisition of LV= were submitted. The insurer is estimated to be valued between 500 million pounds ($647million) to 1 billion pounds, according to sources.
Air Canada is offering free COVID-19 insurance coverage to customers in partnership with Manulife. Travelers who book an international flight with the airline between Sept. 17 and Oct. 30, 2020, will receive coverage for travel completed by April 12, 2021. The coverage provides up to CA$200,000 for medical treatment expenses should the traveler test positive for the coronavirus.
Mexico City-based insurance aggregator, Caribu, has partnered with The Floow to launch MyCaribu, the first telematics-based comparative rate engine in the country. MyCaribu records users’s trips and scores them against a number of factors including cell phone use, speed, time of day, fatigue and smoothness of driving to help drivers develop safer driving habits.