Global Insurance Law Connect (GILC) this week launched its first annual Risk Radar. The report pulls together the key themes from across the GILC network that insurers should have in their sights. GILC member firm Sparke Helmore provided the commentary for Australia.
Chris Wood, Sparke Helmore National Practice Group Leader for Commercial Insurance, commented, “In an interconnected world, risk and its associated insurance solutions continue to become ever more global. While the specifics of today are important, sometimes the bigger question is what changes are coming and how to spot them ahead of time?
“With this problem in mind, the GILC wanted to use the entire network’s expertise to give our collective client base a reference tool that highlights the key insurance issues across many countries. The Risk Radar report gives a snapshot of the major issues that are currently bubbling up in each major insurance destination where the GILC has a presence.
“And across the world, some themes come up time and time again. 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.”
Gillian Davidson, Partner Commercial Insurance at Sparke Helmore and GILC Board Representative for Asia Pacific, reflected on the local market. “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.
“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.”
The Risk Radar report covers Australia, Belgium, Brazil, China, France, India, Ireland, Italy, Mexico, Norway, Spain, Switzerland, Taiwan, United States and the United Kingdom. Click here to access the full report.
Global Insurance Law Connect is a formal alliance of insurance law firms spanning four continents. Founder member firms are Batini Traverso Grasso & Associati (Italy), BLM (UK), Byrd & Associates (France) and Foran Glennon Palandech Ponzi & Rudloff PC (USA). Other members are Blanco & Asociados (Spain), Khaitan Legal Associates (India), Santos Bevilaqua Advogados (Brazil), Advokatfirmaet Riisa & Co (Norway) and Lydian (Belgium), Buren Legal (China), gbf Attorneys-at-Law (Switzerland), Lee and Li (Taiwan), Ocampo 1890 (Mexico) and Sparke Helmore (Australia).