Building and construction claims, directors’ liability, and climate risk are the key issues Australian insurers should have in their sights, according to Global Insurance Law Connect (GILC).
In its first annual Risk Radar Report, GILC provided a snapshot of the major issues that are currently bubbling up in each major insurance destination where the global alliance of insurance law firms has a presence, including Australia.
“The Australian insurance market is in the midst of volatile times, a reflection of the hardening global market, but also of the renewed focus on doing the right thing and restoring trust post the recent financial services royal commission,” said Gillian Davidson, partner for commercial insurance at Sparke Helmore. “A number of issues stand out as having a significant impact on the local insurance industry and the way it operates. The top three issues for Australia focus around the ripple effect of the construction boom on the insurance industry particularly amid the rising incidence of building failures, the pain points being experienced by insurers around D&O insurance with record numbers of class actions and event-based claims, as well as the increasing frequency of climate-driven disasters in this country.”
“And across the world, some themes come up time and time again,” said Chris Wood, Sparke Helmore national practice group leader for commercial insurance. “For example, many countries are struggling with regulatory issues. The frequency and complexity of changes to local laws is a continuous challenge for insurers with global reach. Natural catastrophe is also a dominant global theme – the balance between government relief and the need for individual protection is one that faces a number of countries. The impact of technology too crops up in all its forms—from e-commerce to insurtech – as business struggles to reduce its costs and increase efficiency.”
Risk Radar Report 2019 covers Australia, Belgium, Brazil, China, France, India, Ireland, Italy, Mexico, Norway, Spain, Switzerland, Taiwan, the United States, and the United Kingdom.
To access the full report, visit the GILC website.