June Highlights

Is a Risk-free Economic Recovery Feasible?
Sure—It just requires a balance between NECESSITY, DUTY and POWER – read our Peruvian correspondent’s take on this on page 10

Business Interruption Insurance Coverage: The Next Century
“Consequential Coverage”, also better known as Business Interruption (BI) or Contingent Business Interruption (CBI) coverage, has originated and therefore resided over time within the greater property insurance coverage area. Other policy types and forms have also been known at times to offer coverage for what essentially became known as “loss of income” coverage. The current global pandemic highlights the obvious need to further develop consequential loss of income insurance that applies to a wider spectrum of potential loss scenarios. There seems a growing need to achieve true business resilience with determined risk management standards that commercial enterprises are dependent on. Read more on page 11

Update on Proposed COVID-19 Insurance Coverage Legislation and Litigation: Are Cooler Heads Beginning to Prevail?
In the wake of government quarantine/shut down orders being executed in response to the pandemic, a flurry of bills were introduced in several states to retroactively create—by government fiat—business interruption insurance under property insurance policies where none had existed. Some of those bills remain pending, while others have now been tabled. Learn what legislation and litigation is going on in various states on page 12

Demystifying Cyber Threats
Insurance policies often contain provisions, which can differ significantly in how they are worded, that purport to limit coverage for losses arising out of war or warlike actions. These so-called “war” exclusions were discussed following 9/11 and the issue again returned to prominence following 2018 litigation in relation to losses suffered as a result of the malware known as NotPetya. Putting aside the “war” exclusion, for which much ink has been spilled, this article seeks to demystify the terminology in relation to cyber threats and cyber crime. Read this interesting article on page 13

COVID-19 and Workers’ Compensation
While most press reports, public policy debates and lawsuits have centered on business interruption insurance, state workers’ compensation systems and the insurance products underlying them have been adjusting to the COVID-19 crisis. Read about the most significant developments with respect to:

  • Compensability of COVID-19 related claims under state workers compensation schemes; and
  • The calculation of workers’ compensation insurance premiums.

on page 14

2020’s Atlantic Hurricane Season to Have ‘Well Above-Average’ Activity
An updated 2020 hurricane season forecast released by the Tropical Meteorology Project in the Department of Atmospheric Science at Colorado State University (CSU) calls for a “well above-average” level of tropical cyclone activity. Read on page 14

Is the Insurance Office Going Away for Good?
The coronavirus pandemic is already changing the way that American businesses operate, at least temporarily. But look closely and you can see the potential for long-lasting changes even after life returns to normal. Read why one of these shifts might just mean the end of the traditional insurance office on page 15

Latvia: FCMC might be morphed into a Central Bank division
In many countries Central Banks play a pivotal role in overseeing and regulation the insurance industry. At the end of May 2020, the Ministry of Finance (MoF) from Latvia submitted to the Cabinet of Ministers an assessment prepared in co-operation with the Central Bank of Latvia and the Financial and Capital Market Commission (FCMC) regarding a possible merge between the Central Bank and FCMC, planned to start in 2022 – 2023. Page 16

Romania: COVID-19 pandemic changes population’s perception of risks, reduces revenues, and changes consumer behavior
Following the reduced incomes and the changes on the employment segment, the COVID-19 pandemic also produced changes in Romanians’ perception of risks and consumption behavior, according to the latest UNSAR-IRES Barometer. There are some surprising statistics on page 16

Hong Kong: Insurance Authority releases provisional statistics of Hong Kong insurance industry in the first quarter of 2020
The Insurance Authority just released provisional statistics of the Hong Kong insurance industry for the first quarter of 2020, indicating a growth of total gross premiums by 10.9 percent to $165 billion over the corresponding period in 2019. Page 17

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