Wotton + Kearney Insurance Year in Review – 2009Insurance Year in Review
Welcome to the annual Wotton + Kearney “Insurance Law Review” publication.
Twelve months ago insurers began to experience a decline in value across most asset classes as the Global Financial Crisis took hold. Realised and unrealised losses resulted as the biggest single capital event in the past 30 years unfolded.
However, as we move into improving economic conditions, it appears our industry has benefitted from past failings. Heavier regulation and a greater focus on price modelling, both a corollary of the collapse of HIH earlier this decade, has allowed the insurance industry to move through the GFC relatively unscathed. Certainly the industry remains well capitalised in comparison to other related industries.
Of course the impact on classes of insurance with a longer tail are still not clear and will put pressure on operating ratios in the future. In this publication we review, for example, significant developments in Directors & Officers and Financial Institutions insurance, both likely to cause insurers involved in these classes ongoing concern.
Against that background, we are very optimistic that this publication will allow those with an interest in insurance law to build or reinforce an understanding of important developments across the broad claims landscape.
Please do not hesitate to contact the articles’ authors if you would like further information on any of the topics covered.04/11/2009