Abuse, asbestos and Brexit IRLA Congress report 2017

17 May 2017

Another sell-out year for the IRLA Congress in Brighton – an event which proved to be highly productive and thought-provoking.

A panel discussion on UK legacy and long tail claims examined what market practitioners viewed as the most troublesome and worrying trends now, and going forward. Abuse claims were seen as something to watch – particularly in the wake of the Northern Ireland inquiry which has suggested that the remit of ‘abuse’ should extend beyond the actual victim to include witnesses to abuse and even those who went through an establishment with any abuse cases.

The panel – Ian Harvey, PRO, Chris Webb-Jenkins, Weightmans and Stephen Bellingham, RSA – agreed that the NI report may well have an impact on the long awaited Independent Inquiry into Child Sexual Abuse (IICSA) results and could change the abuse claims landscape. An audience participation question over what was expected to be the lasting effect of the IICSA report was overwhelmingly answered as: an increase in insurance claims volumes followed by a removal of limitations and then an increase in claims values.

Asbestos remained, as ever, on the list of problems going forward with discussion centred on the role of insurers in asbestos drug trials. An audience participation question as to whether the insurance market should support drug trials on asbestos related diseases received an overwhelming vote in favour, despite it being noted that such trials are controversial and can be dangerous.

But the greatest concern in the immediate term for the audience, responding to a participation question, was the impending UK election uncertainty and its impact on proposed reforms.

A comparison of US and European markets chaired by Carolyn Fahey of AIRROC, with Eleni Iacovides, DARAG, Tom Taylor, AXA LM , Victor Nelligan, PwC and Dan Cordina, EY, highlighted a number of stark differences. Drawing on recent surveys with market operatives, it was clear that while the US market was focused on adverse loss development and finality, for Europeans capital and Solvency II were far more important together with the impact of Brexit.

Commenting on the Brexit situation, Iacovides felt strongly that with companies having to make decisions without knowing exactly what will happen in two years’ time, ‘it is criminal that the UK government has not made a more proactive approach.’ However, according to market surveys, the number of European transactions are set to increase – possibly substantially – over the next 12 months.

As far as the US landscape was concerned, the panel agreed that although surveys had shown that there was great interest in the Rhode Island Regulation 68 initiative, with many believing it will result in a major rise in the number of run-off transactions, the market is still waiting for someone to be brave enough to test it. Taylor remarked that he personally found the US insurance system ‘confusing and irritating – hiding behind policyholder protection when they are really just protecting themselves.’

Directory link: IRLA

Event reports

Abuse, asbestos and Brexit IRLA Congress report 2017
17 May 2017
Asbestos claims near peak but plenty more to come Clyde Global Legacy Claims Conference 2017
15 May 2017
IRLA Congress report 2016
20 Jun 2016
Monte Carlo run-off seminar report
15 Sep 2015
IRLA Congress report 2015
12 May 2015
ABI mesothelioma seminar report
11 May 2015
Asbestos is still the big one Clyde & Co Global Legacy Claims Conference
05 Feb 2015
IRLA Congress report 2014
20 May 2014
German market reviews run-off options
08 Apr 2014
Cologne to host German Run-Off Forum
25 Feb 2014
European run-off deals set to increase
03 Feb 2014
IRLA Congress debates future of legacy
07 May 2013
Simply a good time for good causes
08 Apr 2013
PwC Monte Carlo seminar report
10 Sep 2012
IRLA congress report
25 Jun 2012
Munich Rendezvous report
01 Jun 2012
AIRROC award goes to GTE two
10 Nov 2011
John Winter receives Legacy Award at ARC Dinner
08 Nov 2011
ARC Forum report
29 Jun 2011
Norwich 2011 report
17 Jun 2011
ARC Congress 2011 report
02 Mar 2011
EL Tracing Office seminar
05 Nov 2010
European Captive Forum: captives face capital dilemma under Solvency II
21 Oct 2010
Actuaries debate Solvency II at GIRO
15 Oct 2010
Monte Carlo run-off seminar
13 Sep 2010
ARC Congress 2010 report
08 Mar 2010
Run Off at Lunchtime - broker legacy issues
04 Dec 2009
New Jersey Rendezvous report
29 Oct 2009
Run Off at Lunchtime - AGF v Lexington
13 Oct 2009
Monte Carlo report
14 Sep 2009
ARC Forum report
15 Jun 2009
Norwich Rendezvous report
12 Jun 2009
Compre Nordic Run-Off Seminar report
04 Jun 2009

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