Premiums for directors' and officers' liability insurance surged in the second quarter, broker Marsh said on Monday, as insurance underwriters fear the coronavirus pandemic will lead to hefty litigation claims.
Premiums for directors' liability insurance, known as D&O, in Britain rose by more than 100 per cent while in the United States, rates for public companies were up by 59 per cent, Marsh said in a quarterly commercial insurance survey.
D&O insurance protects company directors and executives against litigation costs.
Jonathan Turner, chief executive for speciality insurance at broker Gallagher, said D&O rates for public companies seen as particularly exposed to Covid-19 legal claims had risen by as much as 2,000 per cent.
Risk modelling company Praedicat said that by mid-July, more than 200 claims had been filed in U.S. courts against companies allegedly responsible for introducing and spreading COVID-19 in the United States.
James Whitaker, a partner at law firm Mayer Brown in London, said similar litigation was likely to follow in Britain.
Marsh's survey found that overall, global commercial insurance rates rose 19 per cent in the second quarter.
The rate rise was the highest since the broker began its commercial insurance rates survey in 2012.
"As insurers continue to work through claims in property and D&O, and with the full cost of Covid-19 still developing, upward pressure on pricing is anticipated for the balance of 2020," Dean Klisura, president of global placement and advisory at Marsh, said.
Lloyd's of London estimates non-life insurers globally will pay $100 billion (Dh367bn) in Covid-19-related claims this year.
Marsh said other large losses had also triggered premium rate rises, with insurance industry sources seeing more to come.
Insurance industry sources estimated insured losses of around $3bn from the explosion at the Beirut port warehouse last week. Risk modelling firm Karen Clark estimated insured losses of more than $4bn from Hurricane Isaias, which hit the United States and Caribbean over the past few weeks.
Fighter profiles
Gabrieli Pessanha (Brazil)
Reigning Abu Dhabi World Pro champion in the 95kg division, virtually unbeatable in her weight class. Known for her pressure game but also dangerous with her back on the mat.
Nathiely de Jesus, 23, (Brazil)
Two-time World Pro champion renowned for her aggressive game. She is tall and most feared by her opponents for both her triangles and arm-bar attacks.
Thamara Ferreira, 24, (Brazil)
Since her brown belt days, Ferreira has been dominating the 70kg, in both the World Pro and the Grand Slams. With a very aggressive game.
Samantha Cook, 32, (Britain)
One of the biggest talents coming out of Europe in recent times. She is known for a highly technical game and bringing her A game to the table as always.
Kendall Reusing, 22, (USA)
Another young gun ready to explode in the big leagues. The Californian resident is a powerhouse in the -95kg division. Her duels with Pessanha have been highlights in the Grand Slams.
Martina Gramenius, 32, (Sweden)
Already a two-time Grand Slam champion in the current season. Gramenius won golds in the 70kg, in both in Moscow and Tokyo, to earn a spot in the inaugural Queen of Mats.
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
57%20Seconds
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Rusty%20Cundieff%0D%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EJosh%20Hutcherson%2C%20Morgan%20Freeman%2C%20Greg%20Germann%2C%20Lovie%20Simone%0D%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%0D%3Cbr%3E%0D%3Cbr%3E%3C%2Fp%3E%0A
What is tokenisation?
Tokenisation refers to the issuance of a blockchain token, which represents a virtually tradable real, tangible asset. A tokenised asset is easily transferable, offers good liquidity, returns and is easily traded on the secondary markets.
