With lockdown impending, some worthy but dull detail to help fill the long, long days ahead.
Where we at
During the 2011 Rugby World Cup, as first Dan Carter then Colin Slade fell to injury, the All Blacks goal kicking was taken on by diminutive scrum half Piri Weepu. As he monotonically drove his team to wins over Argentina in the quarter final and then Australia in the semis, the best selling item of clothing in New Zealand became a tee shirt with a big picture of Piri and the slogan “Calm down. I’ve got this”.
Similarly at LIIBA we would like to confirm that we are actively pursuing solutions to these current issues arising from the coronavirus situation that have been raised by members.
- A market wide consistent approach to automatically extending policies where brokers and underwriters struggle to be in contact.
- Some insurers seeking to introduce blanket exclusions by endorsement or at renewal.
- Some guidance on how US coverholders should react to various proclamations emerging from individual States (Jackie’s email attached provides detail).
- Some relaxation of premium payment terms especially for badly affected clients such as airlines.
- Emerging issues such as the availability of capacity in lines such as D&O.
- The possible challenge of complying with the letter of some FCA requirements – particularly the client money rules.
These are being discussed variously with John Neal and Jon Hancock, LMA, IUA and FCA. We will keep you in touch with developments. LMA Board is meeting with Jon Hancock tomorrow morning to discuss a number of these issues. They expect to put out guidance fairly quickly after that.
Of course, come the final Piri went totally to pieces, had to handover kicking duties to 74th choice first five eighth Stephen Donald and then had to be hooked after sending a kick off straight into touch. So maybe not the best analogy. But I am confident that if the same thing happens to us, we would rally in a similar manner to the ABs. Although quite what the insurance equivalent is of Richie McCaw and Jerome Kaino realising that referee Craig Joubert recognised that if he valued his safety he was never going to give France a penalty, and thus McCaw and Kaino could merrily cheat their way to narrow victory, we will have to find out.
FCA has published its interpretation of what constitutes being a key worker in financial services. I know a number of you who retain physical IT infrastructure in your London offices were concerned that these may not be accessible for staff in the event UK enters lockdown. But my reading of this list is that they would be allowed to continue to travel in to maintain this equipment.
Whilst on the subject of FCA, I spoke to Matt Brewis (the new Director of Wholesale Supervision) on Friday. He is keen to know where the regulator can help. As intimated above, we have asked compliance officers to suggest areas of the handbook where it might be a challenge to comply with the full detail of the requirement and are feeding these back. But if anybody has a situation where some regulatory understanding would be useful, let me know. As well as speaking to Matt, there is a roundtable on Wednesday hosted by FCA where such issues can be raised.
Plagiarism is the sincerest form of flattery
Those nice people at insurance Business Magazine have had the idea of collating the contingency plans of insurers. The same idea we had last week. Anyway, here its is. We will cross reference with our list and issue a new version tomorrow.
And rather, for once, than a flippant send off, can I just say I hope you are all well, bearing up to the prospect that we have before us and adjusting to these strange times. See you on the other side.