Australia policyholder insurance highlights 2021

This unique publication focuses on business implications and learnings for insurance policyholders, including:

• COVID-19 has meant insurance has been front page news and top of mind for corporate Australia: interruption to Australian (and global) businesses as a result of COVID-19 has been widespread. Because COVID-19 is not a typical ‘physical damage’ trigger for business interruption policies, there has been a significant focus on the response of various ‘non-damage’ extensions for disease, prevention of access and actions by authorities as policyholders search for insurance to cover the financial impact of the pandemic.
• Continuing pressure on the Directors’ & Officers’ insurance market: policyholders have continued to experience a hardening of the D&O insurance market, which has primarily been driven by historical and ongoing class action and regulator activity, as well as the inadequacy of past premiums to meet those liabilities.
• Delays and disputes continue to affect major insurance claims: with pressure from COVID-19 and catastrophe losses and lower investment returns in a low interest environment, insurers’ profit margins come under increased pressure. Consistent with the trends we have observed in recent years, coverage disputes for major claims are on the rise.

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