Guy Carpenter published its semiannual report on key legislative developments in Europe affecting liability insurers and reinsurers. A number of these developments underscore the challenges in adapting local legislation and jurisprudence to European Union (EU) and international law.
Reinsurance rates generally were flat year over year at the January 1, 2012, renewal. Motor was the lone exception, with reinsurance rates up 5 percent from a year ago. For 2012 the outlook is relatively stable. Developments in the motor business, which accounts for 50 percent of property and casualty premiums, also have led to a broader improvement in the insurance industry throughout the country.
At least six people died after a luxury cruise ship carrying 4,229 passengers and crew ran aground off the Italian west coast on January 13 in calm weather conditions. Italian, Spanish, German, French, British and American nationals were reported to be among the 3,200 passengers on board the vessel. The 290-meter-long Costa Concordia was on a trip around the Mediterranean when it hit rocks near Isola del Giglio off the Tuscan coast, ripping a hole in its hull and prompting a major rescue operation. A large gash can be seen in the ship’s hull but officials said its fuel tanks did not appear to have been damaged, lessening the danger of an oil spill.
A broad diversity of topics is investigated in our latest update:
David Lewin, Managing Director
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Introduction
Italy has recently enacted a statute (D.Lgs.28/2010) introducing mediation as a means to resolve the controversies arising from insurance contracts and some other specific matters. The main features of the mediation procedure are the following:
Mediator
Torrential rainfall across northern and central Italy and southeastern France has triggered widespread flooding, killing at least 11 people and causing damage to property and infrastructure. Reports said the heavy rainfall caused rivers to burst their banks and forced thousands of people to evacuate their homes. The Italian city of Genoa was badly hit on November 4 after more than 350 millimeters of rain fell in six hours. Authorities in Italy have issued fresh flood alerts and are warning thousands more people will be at risk if the flooding continues.
Loss-free programs were down 5 percent to 10 percent at the January 1, 2011 reinsurance renewal in Italy. Those affected by losses experienced average increases of 10 percent, on average. For per risk working layers, general third-party liability and fire risk rates were stable. Motor third-party liability rates rose 15 percent to 20 percent year over year, driven by the V Directive and new parameters used by courts to assess permanent disability.
The Italian market was characterized by reinsurers who were not driven to quote aggressively, but then followed final terms. Average rate changes spanned a wide range from flat to up to 20 percent higher. Excess of loss (XOL) business without losses was generally flat, the exception being bond and credit coverage, which increased by 5 percent. Rate changes for XOL business with losses ranged from flat to increases of 15 percent for marine, 10 percent for cat and 5 percent for risk business and general third party liability. Motor third party liability business with losses experienced large average increases for exposures below USD2.5 million in a range of 15 percent to 20 percent. Exposures exceeding USD2.5 million showed rate increases of 5 percent. Continue reading…
