UK: Pinsent Masons Insurance Briefing - Insurers Should Innovate In Wake Of Hurricane Harvey, Says Expert

Last Updated: 6 September 2017
Article by Colin Read, Nicholas Bradley and Alexis Roberts

Welcome to Insurance Briefing - a fortnightly round-up of insurance legal and business developments published on Out-Law - with analysis and commentary from the insurance team at Pinsent Masons.

The six topics of focus this fortnight include:

Insurers should innovate in wake of Hurricane Harvey, says expert

The catastrophic flooding caused by Hurricane Harvey in Texas will not have a significant impact on the insurance and reinsurance markets, despite the damage caused to thousands of homes. Insurance law expert Nick Bradley said only a small proportion of homes in the US have insurance covering flood damage, and suggested there was scope for the insurance industry to innovate more to offer products protecting communities from such catastrophes. "Hurricane Harvey has caused extensive damage to property, both residential and commercial, across several of the southern states in the US, including severe disruption and loss in its fourth largest city, Houston. Yet, despite predicted economic loss in the range of $30 billion to $90bn, insured losses are forecast to be only in the range of $6bn to $10bn."

Ruling clarifies ease of 'joining' insurers of insolvent insureds to cases under new law

LEGAL UPDATE: A UK court ruling has clarified the effect of the Third Parties (Rights Against Insurers) Act of 2010, which allows a third party to pursue a company's insurers directly when that company has gone out of business. The ruling in a case between BAE Pensions and Royal & Sun Alliance (RSA) confirms that the 2010 Act does not require proof that an insurer covered the event in question before being joined to the proceedings. Proof of that coverage can form part of the case itself. This ruling, which is the first reported case to deal with the 2010 Act in force since 1 August 2016, confirms the intent and effect of the 2010 Act which is to make it easier to join an insurer to proceedings against an insolvent insured.

FCA urges consumers to 'make a decision' on PPI ahead of 2019 complaints deadline

Consumers will be urged to "make a decision" about whether to claim compensation for mis-sold payment protection insurance (PPI) as part of a two-year awareness-raising campaign. The campaign, which is being paid for by the 18 financial firms who reported the majority of mis-selling complaints, will consist of TV, cinema and online advertising and outdoor billboards, running up to the claims deadline of 29 August 2019. The firms are also funding a dedicated FCA phone line which will assist consumers with their PPI queries, and have agreed to put procedures in place to make it easier for customers to make a complaint. Insurance law expert Colin Read said that firms should be prepared for additional complaints in the run-up to the 2019 deadline. "Texts, emails, calls and traditional advertising have been deployed by claims management companies seeking new complainants for some years. Banks and insurers will be watching carefully to see if this publicity campaign – with an 'official' push by the FCA behind it – generates genuinely new complainants, requiring financial institutions to revisit their provisions for PPI claims."

New LMA working group will examine 'political' risks of banking regulation

A new working group which will look into the potential impact of banking regulation on insured banks, and potentially their insurers, has been set up by the Lloyd's Market Association (LMA). The group, which will report to the LMA's political risks, credit and financial contingencies panel, will particularly focus on understanding the potential impact of the use by banks of non-payment insurance as a means of capital relief. Banks take out non-payment insurance to cover the risks associated with borrowers defaulting on loan repayments. The policies can also be used as a means of capital relief, provided that the bank complies with the relevant Basel III requirements.

China plans crackdown on insurance rule breakers

China's insurance regulator plans to identify and punish insurers who break the country's laws, China Daily has reported. The China Insurance Regulatory Commission signed a memorandum of understanding (MoU) with 30 ministries and regulators including the People's Bank of China, and the National Development and Reform Commission to tackle illegal activities in the insurance sector and "hold wrongdoers accountable", China Daily said. Insurers who are found to have broken the rules will be restricted from setting up banking, securities or insurance businesses in future and from any government procurement or subsidy schemes, the news site said.

BREXIT UPDATE: Some claims could still be influenced by CJEU under Brexit dispute resolution proposals

The UK's proposal for a legal disputes framework after the UK leaves the EU lacks detail and the fall back provisions leave the door open to ECJ influence after Brexit, an expert has said. The UK government published the paper on Tuesday arguing for the implementation of a 'cross border civil judicial cooperation framework' to resolve disputes between the UK and EU following Brexit. Litigation expert Stuart McNeill said: "The paper addresses two main areas of interest: the law that applies to contractual and non-contractual matters; and which courts have the jurisdiction to determine a claim and the recognition and enforcement of any judgment that they issue. On the choice of law there are no surprises. The paper confirms what already appeared to be the case from the UK's Repeal Bill, namely that the UK plans to transpose the European rules on conflict of laws, Rome I and II, into domestic law. The UK is free to do this unilaterally and so nothing will change. Everything else however requires reciprocity. As expected the government aims to negotiate a new judicial cooperation agreement with the EU in order to maintain the relative ease with which intra-EU judgments, or those of Norway, Iceland, Switzerland and others, are recognised and enforced. The paper emphasises the 'shared interest' in achieving this aim but there is no detail about how this might be done."

Find the briefing online here.

You may also be interested in:

We hope you find this helpful.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.