Atlas Magazine July 2019


The insurance news for the first quarter of 2019 have been predominantly marked by three topics: Brexit, regulatory pressure exerted on African and Middle Eastern insurers and Boeing 737 MAX problems.
Atlas Magazine N°162, June 2019 Click to download
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In Europe, relentless talks over Brexit are keeping markets in blurred territory. Uncertainty which is hanging over divorce terms between London and Brussels is straining for the time being just the British who are watching helplessly jobs and turnover escape towards the continent. This ended up with United Kingdom losing its position as a leader of the European market for the benefit of France.

In Africa and the Middle East, the business continues to face the relentless pressure exerted by regulators, more than ever resolved to consolidate the market solvency. The long-awaited consolidation by the regulatory authorities is conditioned involves successive share capital increases. Consequently, on May 31, 2019, in West and Central Africa, CIMA finalized the tripling increase of insurers’ share capital. On May 20, 2019, Nigerian authorities announced a substantial increase of shareholder’s contributions. In Saudi Arabia, authorities are intent on raising fivefold the minimum share capital of the companies operating on the market.

Another piece of news consists of Boeing 737 Max whose woes are about to trigger a claim of unimaginable scale. Boeing and its insurers are faced with an unprecedented overlapping guarantees. In this regard, the third party liability and operating losses are getting out of control. Compensation sums due for both guarantees are likely to be well above the losses sustained in life and marine hull insurance.

Atlas Magazine N°163, July 2019

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