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On May 29, 2013, Property Claims Services (“PCS”) released its third re-survey of Superstorm Sandy insurance industry loss estimates based on information gathered from affected insurers. The updated loss estimate was $18.75 billion, which remains unchanged from PCS’s first and second re-survey loss estimates released in January and March 2013, respectively. PCS’s first loss estimate related to Superstorm Sandy, released in November 2012, was $11 billion. …
Read More Industry Loss Estimates for Superstorm Sandy Remain at $18.75 Billion

The New York Department of Financial Services (“DFS”) sent “308 Letters” to the largest insurers it regulates yesterday, requiring information on their cyber security, according to a press release issued by New York Governor Andrew Cuomo. …
Read More NY Demands Info on Insurers’ Cyber Threats

Recently, New York-based insurance broker DeWitt Stern announced that it will offer a new insurance product designed to protect businesses that would suffer loss of revenue due to the cancellation or relocation of Super Bowl XLVII, which is scheduled to take place on February 2, 2014 at MetLife Stadium in East Rutherford, New Jersey. …
Read More Major Disasters in Northeast and Beyond Spur New Super Bowl Insurance Product

In Phillips v. Prudential Insurance Co. of America, No. 11-3870 (7th Cir. May 6, 2013), the Seventh Circuit recently affirmed dismissal of a putative class action that challenged a life insurer’s use of “retained asset accounts” to make payment of the policy’s benefits. On behalf of a putative class, Zena Phillips sued Prudential, alleging that by not paying her policy benefits in a lump sum, it breached an insurance policy, its statutory duty of good faith, and its fiduciary duties. …
Read More The Seventh Circuit Rules That Life Insurers May Create Retained Asset Accounts to Pay Death Benefits, if the Policy Does Not Require Lump Sum Payments

On the evening of May 23, a large section of the I-5 bridge over the Skagit River in Mt. Vernon, Washington collapsed into the river below. See news articles here and here. According to early reports, an “oversized” truck struck one of the overhead steel trusses on the bridge, which caused the entire structure to fail.
Read More I-5 Bridge Collapse Could Raise Several Thorny Insurance Issues

Program:

Insurance Linked Securities: The Convergence of Insurance and the Capital Markets

Discussion of the legal and regulatory issues for various ILS structures including CAT Bonds, ILW’s and Side Cars.

Read More PLEASE JOIN US – 12th Annual Half-Day Insurance and Reinsurance Seminar – Complimentary Seminar

In Mutual Holdings (Bermuda) Limited and others (“the Mutual Group”) v Diane Hendricks and others (“Mr and Mrs Hendricks”) [2013] UKPC 13, the Privy Council found that the Court of Appeal of Bermuda was not justified in making findings of fraud and overturning the judgment of the trial judge. …
Read More UK: High Thresholds for Fraud and for Overturning a Finding of Fact by a Trial Judge

Legislation was introduced this week to prevent foreign-controlled insurers operating in the United States from reducing their U.S. tax bill by reinsuring with their non-U.S. affiliates.
Read More House and Senate Introduce Bills Deferring Tax Deductions for Foreign Insurers

Healthcare News from Capitol Hill and the Department of Health and Human Services

In an open letter to the “health care provider community,” Senators Max Baucus (D-MT) and Orrin Hatch (R-UT), the leaders of the Senate Finance Committee, have asked for suggestions on reforming the Medicare physician payment system. The letter notes that the current Medicare sustainable growth rate (SGR) formula is broken and must be repealed.
Read More Senate Finance Committee Leaders Seek Input on Medicare Physician Payment Reform