This is our regular update of new insurance regulatory developments relevant to the Asia-Pacific* and India, new insurance-related case law in Hong Kong, Australia and England and interesting insurance articles from across the world.

Insurance regulatory updates

India

IRDAI has released Amendments in respect of provisions of Guidelines on Standardizations of Exclusions in Health Insurance Contracts

Obligatory Cessions to Indian Re-Insurers for FY 2020-21

Australia

ASIC and APRA welcome law reform on superannuation regulator roles

APRA proposes to uplift transparency around life and general insurance data

ASIC moves against SMSF auditor misconduct

ASIC update on compensation for financial advice related misconduct

UK

FCA releases Speech by Mark Steward, FCA Executive Director of Enforcement and Market Oversight on Penalties, remediation, and our General Principles“

Insurance cases

Ingenious Litigation, Re [2020] EWHC 235 (Ch)
10 February 2020 – English High Court

After the event insurance – security for costs – The court held that the existence of an after the event insurance policy did not shield litigation funders from a security for costs application as it was vulnerable to avoidance, termination and other acts by the insurer that might prevent it from paying a claim for costs against the insured. The judge stated:

“I have not found it easy to resolve this myriad of issues. The fundamental difficulty is that an ATE policy, as recognised on both sides, is not designed as security for costs. It is designed as cover for the Claimants, and like all insurance, insurers are astute to protect themselves from behaviour of the insured which changes the risk they have agreed to undertake. That explains why insurers reserve the rights they do both to avoid and to terminate the policy. Adapting such a policy to make it suitable to stand as security for the costs of a defendant requires quite a lot of work, because it is not written with the interests of the defendant in mind, and once the claim has failed and the defendant has become entitled to its costs, the interests of the defendant are naturally antithetical to those of the insurer.“


Danbol Pty Ltd v Swiss Re International Se [2020] VSC 23
7 February 2020 – Supreme Court of Victoria

Formation of contract of insurance – The court held that, as a matter of basic principles of formation of a contract, the insurer had not agreed to extend Industrial & Special Risks cover by 14 days to enable an insured to arrange cover. During that period of time, a fire damaged the insured premises. Whilst the outcome appears somewhat harsh on the facts, the case does serve as a salutary reminder to brokers to ensure that there is clear confirmation that the required cover is actually in place.

Insurance articles / news

Indian general insurance market grows 14.5%

MAS to hold consultation on environmental risk management guidelines

China Life seeking Hong Kong backdoor listing: report

China: Online insurance platform company raises US$55m in IPO

India grants US$350m capital for 3 state insurers

Re market in flux, but Asia potential remains: Peak Re

Insurance transactions grind to halt amid virus outbreak



*Hong Kong, Singapore, China, Malaysia, Vietnam, Thailand and Australia.