Posted in Insurance Law

A quick guide to The Enterprise Act 2016

Following the despicable outcome of  Sprung v Royal Insurance (UK) Ltd  (late payments for 4 years and insured out of the business as a consequence), the Insurance Act 2016 introduces section 13A “‘(….)if the insured makes a claim under the contract, the insurer must pay any sums due in respect of the claim within a reasonable time’”.

Applicable to any insurance contract on or after May 4, 2017.


Posted in Insurance Law, IT Law

Cyber liability: how can businesses protect themselves against underestimated cyber risks?

Some nice considerations on cyber-coverage. Insurance policies generally do not cover:

  • the costs of restoring the data, the costs of any reputational damage and claims from third parties
  • (in case of Traditional business interruption insurance) losses suffered if an IT system fails as a result of a virus or other cyber-attack.

What should a proper cyber-insurance policy cover:

  • direct losses (computer restoration and data recovery, business interruption from systems failures, reputational damage arising from a breach of data that results in loss of intellectual property or customers, theft of money or digital assets through theft of equipment or electronic theft)
  • claims by third parties (investigation, defence costs and civil damages associated with security and privacy breaches +customer notification expenses when there is a legal or regulatory requirement to notify them of a security or privacy breach + multi-media liability, including investigation costs, defence costs and damages arising from defamation, breach of privacy or negligence in publication in electronic or print media)


Posted in Insurance Law

2016 Election Results: Preliminary Considerations for the Insurance Industry

What are the main (potential) twists arising from Trump’s presidency?

  • Tax wise: corporate tax may be drasticaly reduced from 35 to 15%, Corporate alternative minimum tax may be erased and repatriation of capital may happen with a 10% tax threshold. There are ongoing discussions on taxing offshore re-insurance companies too.
  • Repelling the “affordable Care Act”. There is no draft nor idea of what the new act could look like, but GOP members wants definitely to erase it and the insurance industry doesn’t have enough information to get prepared.
  • Dodd Frank Act and its future. No Doubt, Trump will deregulate the financial industry too.
  • Standards to define the systematically important insurance companies will keep to be scrambled and developed.

Further changes may involve  the Federal Role in Insurance, State Regulation, Flood Insurance, and the role of Mortgage Insurance in Housing Finance Reform.