Recently, in American Home Assurance Co. v. American Re-Insurance Co., No. 602485/06 (N.Y. Sup. Ct. May 27, 2010), the Supreme Court, New York County (Ramos, J.) granted Defendants’ (the reinsurers’) summary judgment motions, finding that Plaintiffs’(the insurers’) claims were not reasonably within the scope of or arguably covered by its underlying policies with Monsanto.  As such, the reinsurers were not bound to follow the settlement. …
Read More Update: New York State Court Finds that Follow the Settlements Doctrine Does Not Apply

In an effort to cover the costs of raising supervisory standards, the Insurance Companies (Special Fees) Act will impose an one-off $230,000 levy on certain Class 4 insurance companies in Bermuda.
Read More Bermuda Legislation Imposes a One-Time Levy on Some Class Four Insurance Companies

On 10 August 2010, the Financial Services Authority published a Policy Statement confirming its package of measures to protect consumers of payment protection insurance (PPI). …
Read More UK: Financial Services Authority Confirms Payment Protection Insurance Measures

Last week, the Connecticut Supreme Court issued a ruling in which it placed several restrictions on the uses that the Connecticut Attorney General (AG) may make of documents subpoenaed from a Florida-based insurer during an antitrust investigation. …
Read More Connecticut Supreme Court Limits Attorney General’s Power to Disclose Documents Subpoenaed from Insurer

Earlier this year, the Independent Insurance Agents and Brokers of New York (the “IIABNY”) and the Council of Insurance Brokers of Greater New York (the “CIBGNY”) filed an Article 78 petition in New York State Supreme Court in Albany County against the New York Insurance Department (the “NYID”) in order to prevent the mandatory producer compensation disclosure requirements of Regulation 194[1]. …
Read More New York Attorney General Files Response to Article 78 Petition to Prevent the Producer Compensation Disclosure Requirements of Regulation 194; Petitioners Gear Up for Rebuttal

Media reports suggest that BP’s D&O insurers could face significant exposure to claims stemming from the Deepwater Horizon disaster.  As we previously reported, BP self-insures much of its property and liability cover through its captive insurer, Jupiter Insurance Ltd.  According to media reports, Jupiter does not purchase reinsurance; but it does currently have over $700 million on hand to respond to Deepwater Horizon claims. …
Read More D&O Insurers Face Potential Exposure on Deepwater Horizon Claims

The International Accounting Standards Board (IASB) has published its draft proposals to improve accounting for insurance contracts. The draft proposes a single International Financial Reporting Standard (IFRS) that all insurers, in all jurisdictions, could apply to all contract types on a consistent basis. …
Read More Improvements Proposed to Insurance Accounting

In Robert Bacon v Nacional Suiza Cia Seguros Y Reseguros SA [2010] EWHC 2017 (QB), Mr Justice Tomlinson, in a preliminary issue hearing, was asked to determine (i) the grounds why Spanish law was applicable to the Defendant’s liability; and (ii) the issue of liability itself. …
Read More UK/Europe: English High Court Considers the Application of Rome II

According to a recent article in Business Insurance, risk management consulting firm Towers Watson & Co. estimates that commercially insured losses from the explosion at the Deepwater Horizon oil rig in the Gulf of Mexico will be between $4 billion and $6 billion.   Nonetheless, Towers Watson notes that its estimate represents only a fraction of the overall economic loss suffered from the Gulf oil spill, which so far is estimated to be $35 billion. …
Read More Oil Rig’s Insured Losses estimated to be $4 Billion to $6 Billion

According to a recent Dow Jones News Service article, leading insurance companies have recently stated that they do not expect the Deepwater Horizon explosion in the Gulf to be a catastrophic event for the so-called “upstream” insurance market.  The upstream insurance market, which sells coverage to companies that are involved in the search for, development and production of oil, operates in its own niche of the property and casualty insurance industry collecting roughly $2.5 billion a year in premiums. …
Read More Upstream Insurers See Losses From Gulf Oil Spill But Continue Business