Post magazine – 5 July 2012

In this week’s Post, reporter Chinwe Akomah presses brokers to reveal the extent to which they will continue to place business with carriers breaching their minimum financial strength ratings, as Fitch admits it does not know how far the current rounds of insurer downgrades will go.

Liability emerges as the class neither brokers nor corporate clients are prepared to take a chance on, but typically the decision buck is passing to clients, with brokers seeking security disclaimers from those not prepared to switch insurers.

In other news, Post news editor Mairi MacDonald speaks to Hardy CEO Barbara Merry in the wake of Monday’s takeover completion by US insurer CNA – and finds her upbeat about retaining the team’s “relative independence” as well as the Hardy brand, with the currency and value it holds.

Following the suspension of trading in Singapore last week and decision to refocus its property treaty underwriting on the US, Merry was asked whether she regrets not making the switch earlier – bearing in mind the unprecedented southern hemisphere losses that triggered the takeover process.

“Unfortunately, none of us were to know that we were heading into a year with the most exceptional losses of record.” No doubt many of her cat-exposed peers at Lloyd’s would nod solemnly in agreement.

Elsewhere, Post reporter Callum Brodie digs deeper into last week’s Supreme Court judgment that saw Zurich’s seven-year legal battle against a grossly exaggerated third-party injury claim fail at the final hurdle. But, with Zurich having won the argument on principle – for court’s to be granted the power to strike out whole 3P claims when an element is found to be fraudulent - we details the next best steps for insurers and their legal representatives in their fight against fraud.

Feature articles not to be missed this week include an in-depth profile interview with Quindell CEO Rob Terry – a company firmly on the acquisition trail; expert commentary on the ramifications of the Law Commission’s final proposals for shaking up 100 years of commercial insurance law; and what the market really thinks of Biba bringing in Deloitte to shape its own 21st century makeover.

Enjoy the read!

Lynn Rouse, editor, Post