As we previously discussed here, Costa Rican president Oscar Arias Sanchez this year signed into law a bill ending the more than 80-year government monopoly over the country’s insurance industry.  Although no private companies have yet applied for licensing, the Costa Rican authorities have begun cracking down on sales of foreign insurance (please click here) and several companies have publicly indicated an interest in the market, including Grupo Mundial of Panama, which has indicated that it is preparing to enter the Costa Rican market in 2009. …
Read More New Costa Rican Insurance Law and Regulations

Advisen recently issued three reports, on the D&O market, E&O market and the financial services industry, containing predictions on the impact of the subprime/credit crisis on insurers worldwide.

With respect to D&O claims, Advisen predicts $5.9 billion in losses for claims during 2007, 2008, and 2009.  This amount

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Read More Industry Analyst Predicts Impact on D&O and E&O Insurers to Total $9.6 Billion

We have reported previously on the progress of the Lloyd’s Legislative Reform Order (LRO) through Parliament (our most recent post can be found by clicking here). The LRO has now been approved by both Houses of Parliament and is expected to come into force on Wednesday 19 November 2008. 

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Read More Parliament Approves Lloyd’s Reform Order; Lloyd’s Consults on Changes to its Rules

At the Future of General Insurance conference on 5 November 2008, Sarah Wilson, the FSA’s insurance sector leader, warned that the insurance industry might find itself under pressure if it fails to reform its practices regarding contract fairness and customer relations. She added that the FSA will be taking a keen look at the sector, particularly in light of the added risks it faces in the current economic climate. …
Read More UK: FSA’s Message to the Industry at the Future of General Insurance Conference

The Eleventh Circuit recently held that an excess Directors and Officers (“D&O”) insurance policy did not cover its insured’s attorney’s fees after the primary policy’s limits were depleted. …
Read More Eleventh Circuit Finds that Excess D&O Policy Did Not Cover Attorney’s Fees After Exhaustion of Primary Policy’s Limits

In the case of HLB Kidsons v Lloyd’s Underwriters subscribing to Lloyd’s policy No 621/PK1D000101 & Others [2008] EWCA Civ 1206, the Court of Appeal has given useful guidance on when notification of circumstances which may give rise to a claim is effective. Kidsons was a firm of chartered accountants who sold tax avoidance products through its subsidiary Solutions @ Fiscal Innovation Limited (S@FI). …
Read More UK: Court of Appeal Gives Guidance on When Notification of Circumstances is Enough

In Markel Capital Limited v (1) Gothaer Allgemeine Versicherung AG (2) Continentale Sachversicherung AG and Bloemers & Partners Limited [2008] EWHC 2517 (Comm), the Court was asked to consider a summary judgment application by Markel in respect of its claim for a declaration of non-liability on the ground that a condition precedent to its liability had not been satisfied. The Court also heard an application by the Defendant reinsureds against the broker, Bloemers & Partners, who broked the reinsurance contract to Markel on their behalf. 

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Read More UK: English High Court Examines Whether a Claims Co-Operation Clause had been Agreed as a Term of a Reinsurance Contract

On October 21, 2008, Argentina’s president, Cristina Fernandez de Kirchner, announced a plan to nationalize the country’s 30 billion dollars in private pension funds, ostensibly in a effort to protect retirees’ savings during the current global economic turmoil.  The announcement, however, rather than stabilizing Argentina’s economy, has thus far resulted in greater uncertainty and tremendous economic and social turmoil. 

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Read More Argentina: Ramifications of the Nationalization of Private Pension Funds

Massachusetts already has one of the most aggressive data security regulations in the country, and robust new guidelines were just issued to implement this regulation, effective January 1, 2009. 

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Read More New Massachusetts Guidelines for Mandatory Computer Security Policies

La Nacion of Costa Rica reports that the new Superintendencia General de Seguros (Sugese) is investigating 15 persons concerning allegations of illegal sales of foreign insurance policies.  Complaints were filed with Sugese against the 15 persons by the Instituto Nacional de Seguros (INS), which until recently held a government-imposed monopoly on insurance sales and remains the only entity currently authorized to sell insurance in Costa Rica. 

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Read More New Costa Rican Insurance Superintendency Investigating “Illegal” Sale of Foreign Insurance