AM Best has said that insurers are well-capitalised to withstand the financial impact of Covid-19 after modelling a stress-test on Monday. The ratings agency said the majority of insurers and reinsurers performed well in the test, and their capital levels provided an adequate buffer against a potential shock to their balance sheets. Those writing risk for health and life insurance were hit hardest due to their exposure to mortality risk. AM Best added that depending on how visible legal disputes over insurance issues become, some may have their reputations hit, which could also impact balance sheets.
AM Best also reported in collaboration with the Insurance Industry Charitable Foundation (IICF) that charitable giving to help combat Covid-19 reached $320m. IICF CEO Bill Ross said: “I am pleased to say that over 90 companies have been identified or reported to us. Working with the Insurance Information Institute, they have estimated that over $220 million has been granted to Covid-19 and an additional $100 million has actually been contributed internationally.”
The Hiscox Action Group (HAG) expects to bring a lawsuit against the Bermuda-based insurer “within days”, as it got the the green light from its legal representative and secured litigation funding. The announcement comes after law firm Mishcon De Reya, which will bring the action on behalf of the HAG, said it has a “good chance” of winning the lawsuit — a claim it made after reviewing the contract disputes of its more than 400 members. This finding, the HAG said, was enough to secure agreement to cover the costs of its lawsuit, after it had been in the final stages of negotiation with Harbour Litigiation Funding.