The Court of Appeal has confirmed that the wording of a “top and drop” excess insurance policy did not affect the order in which liability attaches under a tower of insurance. …
Read More UK: Court of Appeal Confirms Order of Attachment in Insurance Tower With Top and Drop Policy

Over the years, there has been much debate that the practice of the insurance market in allowing an insurance broker (acting as the agent of the assured) to receive commission from the insurer may contravene the equitable principle that an agent cannot make a profit from his office without disclosing the profit to his principal (the assured). …
Read More Hong Kong: Landmark Decision on Disclosure of Insurance Brokerage Commission

On 12 January 2012, a vote by the Economic and Monetary Affairs Committee of the European Parliament on the Omnibus II Directive was delayed until 21 March 2012. When adopted, Omnibus II will make significant changes to the Solvency II Directive. The vote had previously been rescheduled from 20 December 2011 to 24 January 2012. …
Read More EU: Solvency II Faces Possible Further Delay

On 18 November 2011, Catlin Group Limited (Catlin) announced the formation of a strategic partnership with China Reinsurance (Group) Corporation (China Re), the biggest reinsurance company in China. …
Read More China Re to Invest Into Lloyd’s of London Through a Syndicate Created With Catlin

On 13 December 2011, the eighth supplement (Supplement VIII) to the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and Mainland China was signed, marking the latest enhancement of economic and trade cooperation between Hong Kong and the Mainland. …
Read More Hong Kong Insurance Brokers are Allowed to Set Up in Guangdong Province

Recent comments by a UK Commercial Court judge indicate that policyholders are entitled to “spike” their entire liability for a mesothelioma claim into any one year of employers’ liability (EL) cover. Spiking potentially arises where the period of EL cover is shorter than the period of negligent exposure to asbestos. …
Read More UK: Commercial Court in London Comments on “Spiking” Mesothelioma Claims

On December 28, 2011, the New Jersey Department of Banking and Insurance (the “Department”) issued Bulletin 11-31 (the “Bulletin”) revising standards for equity indexed annuities (EIA), which are annuity contracts with a value based on performance of a specified equity-based index (or indices).  The Bulletin comes in response to the evolution of EIA product designs, and in light of prevailing low interest rates. …
Read More New Jersey Issues Bulletin Revising Standards for Equity Indexed Annuity Products

As previously reported on InsureReinsure, the State of New York merged its the Insurance and Banking Departments into a new, single agency known as the Department of Financial Services (“DFS”), with new and heightened oversight responsibilities over the financial services industry as a whole.  At the helm of the DFS is the Superintendent of Financial Services, Benjamin M. Lawsky. …
Read More New York Completes Merger of its Insurance and Banking Departments

The Securities and Exchange Commission (SEC) has provided a timeframe for when it intends to issue new rules implementing sections of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  Notably, none of the rules the SEC intends to implement directly effect the insurance industry. …
Read More SEC Publishes Dodd-Frank Implementation Schedule

WHITE HOUSE ISSUES HEALTH REFORM PROGRESS REPORT

In a January 18, 2012 report, the White House stated that all states have “taken some action to implement health reform,” and that 28 states and the District of Columbia are “on their way toward establishing their own Affordable Insurance Exchange.” …
Read More Healthcare Update: White House Issues Health Reform Progress Report; New York Limits Provider Spending for Executive Compensation and Administrative Costs; HHS and Contractor Lag in Development of PPACA Quality Measures