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Archive for March, 2021

Suez Canal blockage a huge loss event for global reinsurers

Posted on: March 31st, 2021 by hema kashyap No Comments

The blocking of the Suez Canal and the resulting disruption to global shipping is likely to cause a large loss event for the reinsurance industry. It is estimated that losses may easily run into hundreds of millions of euros.

The shipowner’s protection and indemnity club will probably face claims from the owners of the cargo on the Ever Given and of the other ships that are blocked in the Suez Canal for losses related to perishable goods and supply chain disruptions.
In addition, they may face claims from the Suez Canal Authority itself for loss of revenues. According to press reports, more than 300 ships are stuck at either end of the canal.

A large share of those losses will probably be reinsured by a global panel of reinsurers. It will add pressure to global reinsurers’ 1H2021 earnings—earnings that have already been knocked by catastrophe events such as winter storms in the US and flooding in Australia, as well as by additional coronavirus pandemic-related losses.

Last year, global reinsurers reported heavy declines in earnings due to paid claims and claims reserves related to the coronavirus pandemic. However, underlying performance improved due to significant price increases in non-life primary and reinsurance, and their capital positions remained very strong at end-2020. The sequence of catastrophe events in 2021 will put additional strain on commercial insurance and reinsurance markets, pushing prices even higher in an already hardening market.

FIFA world cup 2022 insured for US$900m

Posted on: March 26th, 2021 by hema kashyap No Comments

FIFA has procured insurance coverage of $900m for the Qatar 2022 World Cup tournament. It covers the association’s additional costs on incidents of cancellation, postponement and/or relocation of the event as well as risks such as natural disasters, war, acts of terrorism, accidents, turmoil, and communicable diseases.

FIFA said the amount was the “maximum insurance volume”, in a disclosure in the small print of the governing body’s newly-published 2020 financial statements, reported InsideTheGames.biz

The statements also said, “The risks covered include natural disasters, accidents, turmoil, war, acts of terrorism and communicable diseases.”

Furthermore, they said, “FIFA’s financial position depends on the successful staging of the FIFA World Cup because almost all contracts with its commercial affiliates are related to this event.

“In the event of cancellation, curtailment or abandonment of the FIFA World Cup, FIFA would run the risk of potentially being exposed to legal claims,” the accounts added.

FIFA is currently budgeting for total revenue of $4.67bn in 2022. More than half, that is, $2.64bn of this would come from broadcasting rights, with a further $1.35bn from marketing rights and $500m from hospitality rights and ticket sales.

The governing body plans to invest just under $1.7bn in the competition.

FIFA said it took out the insurance in 2019, which was in advance of the COVID-19 pandemic, which continues to affect top-level sport and has forced international spectators to be barred from the rescheduled Tokyo 2020 Olympics later this year.

Spring Allergy

Posted on: March 24th, 2021 by hema kashyap No Comments

Spring is in the air and flowers are blossoming all across North India.

But are you having difficulties in breathing or have runny nose or watery eyes and other bothersome symptoms? Then these blooming flowers are to blame. The biggest spring allergy trigger is pollen. Trees, grasses, and weeds release these tiny grains into the air to fertilize other plants. When they get into the nose of someone who’s allergic, they send the body’s defenses out of order.
The immune system mistakenly sees the pollen as a danger and releases antibodies that attack the allergens. That leads to the release of chemicals called histamines into the blood. Histamines triggers runny nose, itchy eyes, and other symptoms.

Symptoms: You may have

• Runny nose
• Watery eyes
• Sneezing
• Coughing
• Itchy eyes and nose

Tips to manage allergies naturally:

1. Limit your outdoor time and wear mask while going out
2. Clean your house and change bedsheets frequently
3. Take a bath after coming home
4. Take steam to clear the nasal passage
5. Eat probiotics
6. Studies show that saline nasal irrigation had beneficial effects for both children and adults with allergic rhinitis
7. Practitioners of natural medication suggest taking 2 ,000 milligrams of vitamin C daily to reduce histamine levels.
8. Studies show that peppermint oil treatment had enough anti- inflammatory effects that reduced the symptoms of bronchial asthma and allergic rhinitis
9. Advocates of natural healing suggest using eucalyptus oil as an antimicrobial agent by adding it to each load of wash during allergy season
10. Please speak to your doctor for medication

Don’t use home remedies to treat severe allergic reactions which can be identified by symptoms such as:
• Trouble breathing
• Tightness in the lungs
• Chest pains
• Blood pressure changes
• Dizziness
• Fainting
• Rash
• Vomiting


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IRDAI orders insurance companies to be more transparent while processing health claims.

Posted on: March 23rd, 2021 by hema kashyap No Comments

The regulator, IRDAI has asked all insurers to be more transparent in their health insurance claim settlement process and apprise the policyholders of reasons for denial of claims.

It is essential that all insurers establish procedures to let policyholders get clear and transparent communication at various stages of claim process, IRDAI said in a circular.

“All the insurers shall ensure putting in place systems to enable policyholders track the status of cashless requests/claims filed with the insurer/TPA through the website/portal/app or any other authorised electronic means on an ongoing basis.
“The status shall cover from the time of receipt of request to the time of disposal of the claim along with the decision thereon,” said the regulator.

The circular on ‘Health Insurance Claims Settlement’ is addressed to life, general and standalone health insurance companies including the third party administrators (TPAs).

In case the TPAs are settling the claims on behalf of the insurers, policyholders should be notified about all the communications as well as location to track the claims, IRDAI said.

“As specified in the IRDAI (Health Insurance) Regulations, 2016, where a claim is denied or repudiated, the communication about the denial or the repudiation shall be made only by the insurer by specifically stating the reasons for the denial or repudiation, while necessarily referring to the corresponding policy conditions,” IRDAI said.

The authority has said insurers should ensure that policyholders are provided granular details of the payments, amounts disallowed and the reasons for the amount disallowed, as per the regulatory norms.

Besides, they should also PROVIDE the grievance redressal procedures and the insurance ombudsman along with complete addresses of the respective offices.

“Insurers and TPAs, wherever applicable, are advised to ensure compliance of these instructions without fail,” IRDAI said

Cabinet approves increase in FDI limit in insurance

Posted on: March 12th, 2021 by hema kashyap No Comments

According to a report by Press Trust of India, the Indian Cabinet has approved the increase in the foreign direct investment (FDI) limit in insurance companies from 49% to 74%.

The decision to increase the FDI was taken during Budget 2021 on February 1. Finance Ministe,r Nirmala Sitharaman in her speech had said “I propose to amend the Insurance Act, 1938 to increase the permissible FDI limit from 49 per cent to 74 per cent in insurance companies and allow foreign ownership and control with safeguards,”.
The new FDI rules requires the majority of directors on the board and management to be resident Indians and at least 50% of directors should be independent.

The companies must also retain a specified percentage of profit as a general reserve.

With the Cabinet’s nod to amending the insurance law, the FDI changes will be introduced in Parliament for approval. Once the Parliament approves the changes, the process to introduce an applicable framework would start, an official said.

The increase in the FDI limit will provide insurance companies with additional funds to expand their business. This will also provide access to better technical know-how, innovation, and new products.

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