Prospects are mixed for the Central American insurance sector in 2010, according to a study by Fitch Ratings, with countries such as Costa Rica expected to build on their healthy growth in 2009 while others struggle to recover from the global downturn. …
Read More Fitch Ratings Views Central American Insurance Prospects As Mixed

The Court of Appeal has asked for guidance from the Court of Justice of the European Union on the compatibility with Community law of a provision in the Road Traffic Act 1988 (the RTA) governing an insurer’s right of recovery. 

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Read More UK: Court of Appeal seeks guidance from Europe on an insurer’s right of recovery under the Road Traffic Act 1988

In the case of Kris Motor Spares Limited v Fox Williams LLP [2010] EWHC 1008 the High Court was asked to consider whether the successful party’s after the event insurance premium was reasonable and as such could be recovered from the other side. …
Read More UK: Court Considers the Recoverability of After the Event Insurance Premium

In Levicom International Holdings BV and anr v Linklaters (a firm) [2010] EWCA Civ 494, Levicom appealed against the first instance decision of  Mr Justice Andrew Smith that, although Linklaters had negligently advised Levicom, Levicom had suffered no damage as a consequence because it would have proceeded in the manner that it had even if it had received non-negligent or proper advice. …
Read More UK: Court of Appeal rules on causation issues following negligent professional advice

The Massachusetts Supreme Judicial Court recently held that G.L. c. 186 §15, which makes void any indemnification agreement or provision whereby a tenant is obligated to indemnify a landlord, in whole or in part, for the landlord’s own negligence, does not apply to insurance provisions in the lease agreement. …
Read More Massachusetts Supreme Judicial Court Defines Contours of Statute Regulating Indemnification (But Not Insurance Provisions) in Lease Agreements

A federal judge in the United States District Court for the Southern District of Florida recently issued findings of fact and conclusions of law following a bench trial in favor of Wachovia in a suit brought by investors who were unable to liquidate certain Auction Rate Securities (“ARS”) originally purchased through Wachovia. …
Read More SDFL Judge Finds for Wachovia in Unique Auction Rate Securities Suit

China is considering reviving its plan to set up a super regulator in order to make the government’s oversight of the financial sector more efficient and expedient and improve the lack of integration and co-ordination between existing regulators. This is especially important as the financial sector becomes increasingly integrated (for example it is now possible for banks to invest in insurance companies and vice versa). 

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Read More China: Chinese Consider Revising Plan for a Super Regulator

IRB Brasil Ressegurous SA v CX Reinsurance Company Ltd [2010] EWHC 974 (Comm) concerned an appeal brought by IRB in relation to an arbitration award made in favour of CX Re and against IRB.  The claims arose from losses occurring in the 1970s and 1980s which were later settled by insurers, including CX Re. …
Read More UK: Commercial Court Considers Follow the Settlements Clause, Allocation and Recoverability of IBNR

In a news release issued by the State of New Jersey Department of Banking and Insurance (“DOBI”) on May 7, 2010 (the “News Release”), DOBI Commissioner Tom Considine applauded two pieces of proposed legislation which, he said, “would make some common sense changes to regulation and allow captive insurers, and carriers of reinsurance and surplus lines to operate more expansively in New Jersey.” 

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Read More New Jersey Insurance Commissioner Praises Captive Insurance Bill and Unveils Reinsurance and Surplus Lines Initiative