HFW Insurance Bulletin: June 2019 Edition 1
In this issue: Regulation and legislation; Court cases and arbitration; Market developments
The PRA has imposed a penalty of over £1 million on an independent bank for breaches relating to the outsourcing of critical services. The outcome of the PRA’s investigation into the bank’s outsourcing risk management and incident response has implications for insurers and intermediaries across many areas of governance.
- UK: Climate Change + Insurance: PRA publishes a practitioner’s aide for assessing financial impacts of physical climate change
The PRA is continuing to publish papers on the impact of climate change on the financial industry and how it expects firms to respond.
In Euro Pools v Royal & Sun Alliance, the Court of Appeal considered the scope of a policyholder’s notifications of circumstances for coverage for remedial works to mitigate potential claims.
- England & Wales: The effect of governing law and jurisdiction clauses on subrogated claims: Airbus S.A.S. v Generali Italia S.P.A. & Ors  EWCA Civ 805
In a decision that will be of interest to anyone involved in insurance disputes, the Court of Appeal has recently ruled on the effect upon a subrogated claim of a jurisdiction clause connected to the insured’s underlying cause of action.
- England & Wales: IUA publishes two new model cyber exclusions
Cyber risks create issues which many insurers may wish to exclude under their standard policies. However, some insurers have found that their policies unintentionally cover cyber losses, because the wording is “non-affirmative” or “silent” on cyber cover. The Prudential Regulation Authority (PRA) has recently expressed concerns about lack of clear insurance cover for cyber risks, and called for greater clarity of wording and specific limits of cover. To address these issues, the International Underwriting Association (IUA) has published two new model cyber exclusion clauses: IUA 09-081 and IUA 09-082.
For further information please contact the authors of this bulletin.