Yannick Guerry reviews the news
This week we spoke to Insurance Times Editor, Yannick Guerry to get his take on the past week in insurance news.
Which news this week do you think will have the most long-term impact on the insurance industry?
This week, all eyes have been on the (virtual) High Court hearing which has seen the FCA bring its test case against several insurers aimed at bringing some clarity to business interruption policy wordings.
The fate of hundreds of small businesses, as well as the reputation of insurers and brokers, lies in the hands of the presiding judge Lord Justice Flaux.
Having listened to the proceedings, it is already becoming clear that whether or not insurers win their argument that their all-risks business interruption policies were never designed to cover perils such as global pandemics, the public perception will be tarnished.
The legal and semantic gymnastics that the insurers have used as an excuse not to pay out do not reflect well on the industry.
What has been the stand-out story for you on insurance this week - and why?
Our associate editor Katie Scott has written an article looking at the implications for quantum following the FCA’s business interruption test case.
If the ruling goes against insurers, then the next question and major hurdle for insurers will be determining how much to pay out.
In the article we hear from a range of voices discussing salient points such as: ‘will insurers try to argue that businesses who claimed on their BI policy should have furloughed their staff instead?’ and, ‘had there not been a lockdown and businesses had stayed open amid lower footfall, what would have been the extent of the financial impact?’
What has been the most interesting/intriguing/surprising item you have seen in the background of any video-based calls so far and why?
Surprisingly uncontroversial so far. The standard seems to be family photos, pot plants and lamps. No children running in, no exotic stuffed animals, and no-one caught in their underwear… yet.
There has been the odd canine invasion, and Biba executive director Graeme Trudgill’s impressive collection of proudly displayed toy cars, and our very own insight editor Matt Scott’s floral shirts! One webinar panellist managed to superimpose a still image of his garden for his Zoom background.
Who is your insurance personality of the week and why?
Partners& chairman Stuart Reid weighed into the broker consolidation debate again this week. Although Reid recognises that consolidation up to 2012 was generally positive for the industry, M&A activity since has led to price rises and poorer service for customers. Higher prices lead acquirers to seek greater and greater synergies, such as job cuts and insurers being forced into paying higher commissions and more commoditised policies.
And finally… If you could interview anyone from the world of insurance and they had to answer your question 100% truthfully, who would it be and what would you ask them?
Arthur J Gallagher CEO Pat Gallagher. I would ask him which UK company he would like to buy.