Sydney, Australia (CU)_ According to the Risk Radar 2021 report published by Global Insurance Law Connect (GILC), while Australia has survived the COVID-19 storm comparably well in terms of health and economics, Australian insurers and their clients faced issues to ensure business continuity and establish a steady position in the market.
There are three important areas in the insurance sector which need more focus and concern. They are as follows: 1. Business discontinuation losses and the question of whether COVID-19 pandemic-related damages are covered by insurance coverage. 2. Coverage for marine delays, supply chain issues, and whether the COVID-19 pandemic will prompt insurers to reconsider their risk appetite, underwriting standards, and policy wording formulation. 3. Increased attack sophistication leads to an increase in the number of cyber and privacy-related incidents, as well as shifting regulator attitudes, which leads to higher compliance and cyber claim expenses.
According to the report, all Australian firms are presently dealing with a number of critical concerns, which includes flexible and remote working arrangements, supporting employees’ mental well-being, and competition in the recent war for talent. GLIC is a coalition of insurance law firms with offices on four continents. The GILC’s third annual risk radar report for 2021 analyzes the significant legal, regulatory, and social concerns faced by the insurers. It includes 22 markets, three more compared to 2020.
GILC chairman Mr Jim Sherwood spoke about the current global situation. He said, “For the first time, many of the issues that our lawyers have reported as being currently critical in their markets have converged, with a truly universal focus on cyber, climate change and the impacts of the pandemic bringing new challenges to many markets”. He added, “A subsidiary point, but one of much importance to all in our industry, is the follow-on impact of the ‘powering up’ of digital marketing, sales and claims processing, as insurance buyers around the globe move online permanently after a year of cultural change. In this environment, it is all the more important that different markets share approaches, regulatory challenges and stories of innovation.”
