Legal News

Which? urges FCA investigation into Consumer Duty breaches On 16 January 2025, Which? called on the FCA to probe potential breaches of the Consumer Duty within the sector. It argued that the difficulties originate from a flawed sales process, where insurers are not adequately clarifying complex terms and policy exclusions. Rocio Concha, director of policy and advocacy at Which?, condemned the situation, noting that excessive numbers of people are having claims refused and suffering dreadful treatment from insurance firms. She added that the FCA has both the authority and the responsibility to intervene to safeguard consumers. She also stated, “ The regulator must show”......

The British Insurance Brokers’ Association ( BIBA) announced on 15 January 2025 that legacy rules should be scaled back where they duplicate the new Consumer Duty for firms. It also argued that the Consumer Duty ought to be adjusted so it no longer captures large commercial policyholders, BIBA added. These requests featured in BIBA’s 2025 ‘manifesto’, setting out its key political lobbying aims for the coming year, unveiled at an event in Parliament on 15 January 2025. BIBA said: ‘ We have a golden opportunity, via the regulator’s Secondary International Competitiveness and Growth Objective, to align with the government’s......

On 16 January 2025, the professional services company indicated that weather‑linked claims for 2024 are expected to amount to £1.2bn, twice the yearly figures seen from 2017 and 2020. That sum would represent about 22% of all 2024 disbursements made by UK property insurers. Deloitte’s estimate for 2024 property insurance payouts draws on Association of British Insurers ( ABI) data to which it subscribes, while figures for the last quarter of 2024 rely on the firm’s internal data......

Investment bank Berenberg indicated that rival Direct Line stands to benefit from a one-off £30m release from claims reserves. This windfall is expected to be shared with policyholders through reduced premiums. The capital boost stems from a revision to the Ogden discount rate taking effect on 11 January 2025. The rate is used to calculate an upfront payment to cover expenses such as medical treatment and foregone earnings for the remainder of a claimant’s life......

Insurance & Reinsurance weekly highlights—16 January 2025 In this issue: Ukraine conflict Types of insurance UK Regulation EU Regulation Cases tracker Dates for your diary Daily and weekly news alerts Lex Talk®Insurance: a Lexis®Nexis community Ukraine conflict On 9 January 2025, Mc Gill and Partners unveiled what it describes as a pioneering war risk reinsurance facility for commercial property in Ukraine, designed to sharpen risk insight and underwriting for assets in the region. See News Analysis: Broker launches Ukraine property war risk reinsurance. Types of insurance Property insurance The owner of London music venue Koko settled its £15m action against Arthur J Gallagher on the first day of the London trial, 13 January 2025, bringing to a close its allegation that the broker failed to secure fire cover. See News Analysis: Gallagher settles £15m Koko venue negligence...

At the High Court, Thomas Ogden of 4 New Square, appearing for The Hope Lease Ltd, the company behind Koko, confirmed that the venue had reached a settlement with Arthur J Gallagher ( UK) Ltd, the broker it had alleged was negligent. Ogden said the dispute was now concluded, with nothing outstanding, and that the parties wished to move on. The agreement was finalised in 2022, following a claim brought by the storied Camden, north London, venue—known for hosting artists such as Madonna and Prince—alleging the broker failed to secure suitable insurance to compensate for losses arising from a January 2020 fire......

Partnering with the Lloyd’s of London insurance technology firm Fortune Guard, the broker has introduced the facility and plans to deploy artificial intelligence ( AI) tools to back coverage in the country following Russia’s invasion in 2022. Per the announcement, Fortune Guard aggregates data on projectiles launched into the country to estimate potential damage and to enhance risk presentation, assessment and underwriting processes. Mc Gill added that continuous data feeds in real time will help underwriters judge risks with greater accuracy and offer more cost-effective premiums for businesses in Ukraine......

Sam Woods, who heads the Prudential Regulation Authority ( PRA), indicated these measures would sit at the top of the agenda in the reply to the government’s November 2024 letter on growth priorities. Addressing the Financial Services Regulation Committee, he explained that plans to lighten banks’ reporting obligations would mirror a recent step taken for insurers. He noted that, under the Solvency UK reforms, insurance reporting has already been trimmed by one‑third, and the PRA will now examine how far it can pare back banks’ requirements, adding that concrete proposals will arrive this year. Woods also confirmed the PRA intends to table a yet‑to‑be‑disclosed proposal for insurers concerning the so‑called matching adjustment investment accelerator, which has not been made public so far......

Sky UK Ltd and another company v Riverstone Managing Agency Ltd and other companies [2024] EWCA Civ 1567 What are the practical implications of this case? It is uncommon for coverage disputes under CAR policies to reach the Courts, as most are resolved through private arbitration. This ruling is especially welcome because it addresses a policy with a standard-form insurance clause, making it likely to have broad application. The standout finding relates to cover for damage emerging after the expiry of the policy. The judgment emphasises the value of reverting to first principles when grappling with complex legal issues. The central tenet is that an insurance policy is a contract of indemnity, under which the insurer undertakes that the insured peril will not materialise. If the insured event nevertheless occurs, the insurer is in breach of contract and must pay...

The brokerage heavyweight reported that ‘favourable supply dynamics’ have appeared in 2024, spurring sharper price competition across placements. Insurance is inherently cyclical in nature for buyers and carriers alike. After heavy loss years, underwriters usually lift rates and pull back capacity, creating what is termed a hard market phase. When claims ease and profitability returns, premiums tend to come down and cover widens, signalling a softening market cycle. Howden noted that falling prices—the first since 2017—indicated that the persistently......

In a report dated 2 January 2025, Howden disclosed that insurers and aircraft lessors have already struck certain confidential, partial settlements. The insurance market had been expected to face liabilities of up to US$17bn to address aircraft stranded in Russia since the onset of the Ukraine conflict nearly three years earlier, and the related losses. Howden indicated that swift agreements could pare back the overall bill in total......

The Financial Conduct Authority ( FCA) The Financial Conduct Authority ( FCA) opened 2024 by introducing fresh rules aimed at curbing the expense of insuring flats in residential blocks. Almost immediately, consumer advocates and Members of Parliament pressed for deeper action on pricing across a wide spectrum of insurance lines. For the regulator, a central issue has been whether various commission structures in insurance deliver fair value for customers or risk infringing the new Consumer Duty, which puts consumer protection first. According to Hugh Savill, senior adviser at risk consultancy Sicsic Advisory, the FCA insists it is not a price regulator. While that is, strictly, accurate, the year nevertheless revealed a sharper focus on the way brokers and insurers determine prices and margins. Meanwhile, the Prudential Regulation Authority ( PRA) has been called upon to address non-financial misconduct, including bullying and...

The Kingdom of Spain v The London Steam- Ship Owners’ Mutual Insurance Association Ltd and other cases [2024] EWCA Civ 1536 What are the practical implications of this case? This decision from the English Court of Appeal confirms that a final arbitral award gives rise to res judicata, constituting a public policy basis to refuse recognition or registration of a judgment, and again underscores the English courts’ backing for arbitration and the New York Convention. That said, the ruling highlights the real-world difficulties for parties confronted with overlapping State-initiated proceedings, and the perils of declining to engage in litigation abroad. It also clarifies that arbitrators have no power to issue injunctions restraining States from commencing proceedings, and that neither arbitrators nor the courts can grant damages against States as a substitute for an injunction under SCA 1981, s 50. The decision serves as a reminder of the...

London International Exhibition Centre v RSA Britain’s highest court has confirmed it did not grant permission to appeal in the case of London International Exhibition Centre v RSA, which examined ‘at the premises’ policy wording in relation to government-ordered lockdowns during the crisis. The largest strand of the test litigation is a £16m claim by the London International Exhibition Centre, better known as Excel London, based in Docklands. This outcome means the Court of Appeal’s September 2024 decision remains authoritative and will now stand, paving the way for thousands of policyholders with matching wording to pursue insurance recoveries from their policies. A Supreme Court spokesperson stated that the application for permission to appeal was refused. The test case consisted of a bundle of six claims, which the appeals court considered together as a single matter. In all, thirteen insurers and fourteen...

A lawyer involved in earlier negotiations said on 19 December 2024 that Arsenal FC and Liverpool FC have now struck an agreement with their insurers, closing off the prospect of litigation in the high-profile case The core question in the row was whether the clubs’ aggregate losses qualified as a single occurrence under their business interruption policies, or whether they were entitled to make repeat claims for each separate occasion they suffered financial loss owing to government restrictions during the pandemic. This claim sits among several significant insurance disputes that have arisen following the Financial Conduct Authority’s successful UK Supreme Court action against insurers on behalf of policyholders in January 2021......

Hannah Gurga, the trade body’s director-general, told the House of Lords financial services regulation committee that the ABI supports the secondary objective placed on financial regulators, which requires them to promote competitiveness and growth. In force since August 2023, this objective, she said, has allowed an honest acknowledgement that Britain’s rule-making may lean too far towards risk rather than growth. She described the regulatory framework as akin to a coral reef: layer upon layer added in response to particular problems, each sensible when viewed alone, yet collectively generating cumulative complexity. Gurga characterised the current discussion about tinkering with the regulatory regime as constructive. But Britain must address......

Markos Markou, who acted as the sole director and chief executive of Financial Solutions ( Euro) Ltd, held off renewing the company's insurance until he knew the outcome of a Financial Conduct Authority ( FCA) visit that would affect the company's ability to operate, the Court of Appeal found. Although Financial Solutions did not in fact undertake regulated services without cover, Justice Geraldine Andrews concluded there was a clear and obvious risk that, unless trading stopped entirely, it would continue regulated business without PII, which Mr Markou knew was prohibited. On that footing, the court largely upheld the FCA’s appeal against the Upper Tribunal’s ( UT) earlier conclusion that he had not behaved recklessly in any respect. The judgment states that, viewed rationally against the evidence, nothing Mr Markou did came anywhere near addressing the danger of Financial Solutions trading during a period when he knew...

The Court of Appeal agreed fully with Spain that the previous judge erred in concluding he was not bound by a June 2022 European Court of Justice ruling, which held that arbitration proceedings could not block enforcement in England of the Spanish judgment. Yet Master of the Rolls Geoffrey Vos, leading a panel of three justices, also expressly found that the High Court judge was right to decide that recognising the Spanish judgment, in the government's favour, against the London Steam- Ship Owners' Mutual Insurance Association Ltd, conflicted with an English arbitral decision. Justice Vos concluded that a 2013 arbitral award created a binding issue estoppel. He further said it would be manifestly contrary to English public policy, under the Brussels regulation, for the Spanish judgment to be recognised. Accordingly, the judge was correct, in the result, to refuse to register the Spanish...

The Brussels gathering of Eurogroup finance ministers was a notable moment. It was the first appearance by a UK Chancellor at the table since the country’s 2020 departure from the EU. Rachel Reeves took part to signal her administration’s intent to reset ties with the EU, particularly on economic and financial matters. Her presence was intended to demonstrate the new administration’s readiness to turn the page. She told journalists that today begins the groundwork to restore trust and repair relations after a bruising and combative few years between the UK and the European Union. Speaking after the session, she said this was a clear sign of the new UK government’s resolve to recalibrate the UK’s relationship with the European Union and of the importance she places on realising the economic potential of a shared future. Reeves stressed the need to...

The independent consumer advice group reported that a further 900,000 people have been priced out of the car insurance market in 2024, in addition to 1.7 million who have already had to cancel their cover. According to Citizens Advice, 77% of those who cancelled their insurance said it had harmed their everyday lives. A survey of 6,000 adults carried out in September and October 2024 found that one in five motorists are resorting to borrowing money, cutting back on essentials, or falling behind on other bills to meet the cost of car cover in 2024. Clare Moriarty, the consumer body’s chief executive, said the situation was 'a shocking......