Source: Business Insurance

Gloria Gonzalez July 15, 2019 Rising mass shooting events in the United States have resulted in increasing demand for active assailant insurance coverage and insurers are responding to that demand, according to a new report. Two hundred fifty active shootings took place between 2000-2017, with an escalating trend during that time frame, according to FBI data cited by the A.M. Best Co. Inc. in a special report published on Monday called Insurers Create New Types of Coverage for Mass Shooting Attacks. From 2000 to 2006, shooting incidents averaged 6.7 a year, jumping to 16.4 a year from 2007 to 2013, and then averaging 22 a year between 2014 and 2017. “Active shooter attacks differ from acts of terrorism, which typically target specific buildings or locations and trigger coverage from traditional terrorism policies that require property damage for coverage to apply,” Best stated in the report. “The standard terrorism policy also requires that the motive be ideological, political or religious in nature, unlike active shooter attacks, for which the motive may be personal or unclear. The costs following an active shooter attack can be substantial, and some insureds do not realize that their policies do not cover active shooting incidents,” the report continued. “They may believe that this type of attack falls under terrorism coverage but it does not.” In addition, a property policy handles the physical damage of an altercation, but general liability sections do not clearly include or exclude active shooter incidents, which is “a concern for companies that are left footing a huge bill after this type of incident,” according to the report. “This gap in general liability policies, as well as marketplace demand, has provided insurers an opportunity to offer traditional named perils coverage for a new category of risk,” the report stated. Insurers are seeing strong demand for active assailant policies, which have been around since 2011, but “have become more popular in the past three years, amid mounting anxieties about violent attacks,” Best stated. These new insurance policies define this type of attack more broadly than the typical definitions of terrorism and can cover physical damage, business interruption, legal liability, funeral expenses and death benefits for victims, and loss of attraction or brand rehabilitation expenses, according to the report. Common exclusions in active assailant policies include terrorism or coverage for casualties above a threshold limit – generally three to four – as well as potential employee exclusions, meaning guests or visitors at the insured location are covered, but not employees although employees can be included for a higher premium, according to the report.

Source: Business Insurance

Thomson Reuters July 15, 2019 (Reuters) — Britain will change the discount rate used to calculate compensation for personal injuries to minus 0.25% from minus 0.75%, disappointing insurers who were hoping for a higher rate to limit the money they must set aside to cover payouts. The decision by the ministry of justice follows a review in response to lobbying from motor insurers, whose profits were hit by the move to cut the so-called “Ogden Rate” from 2.5% in 2017. UBS analysts said insurers had been expecting a rate of around 0.5% and had moved to setting their reserves based on a rate of 0%. The lower rate chosen by the ministry means insurers will have to set aside more money than expected for lump sum payments for people seriously injured in car crashes, potentially denting their profits and pushing up drivers’ premiums.

Source: Business Insurance

July 15, 2019 Floods inundated shops and houses and damaged roads in the cities of Nafpaktos and Patra in western Greece on July 14, Reuters reported. The catastrophe forced authorities to close a major road and evacuate people from flooded homes in the region.

Source: Business Insurance

July 15, 2019 Peru’s mining, petroleum and energy industry association said that an oil leak in the northeastern region cost companies $2 million per day after indigenous communities damaged the Norperuano Pipeline in May, Telesur reported. Peru has declared a state of emergency for the next 60 days after another oil spill contaminated the Maranon River in the Loreto region.

Source: Business Insurance

July 15, 2019 U.S.-based Walmart Inc. shut 124 out of 375 stores across Chile after 17,000 workers went on an indefinite strike on July 10, Supply Chain Brain reported citing sources. The workers are demanding compensation for multitasking related to an increase in automation at the retail giant’s stores.

Source: Business Insurance

July 15, 2019 U.K.’s Financial Conduct Authority imposed 10 fines worth more than £319 million ($401 million) on companies in the first half of this year amid increased pressure over its alleged failure to protect customers, The Guardian reported. The total fine so far this year exceeded more than five times the amount of fines for 2018 and outstripped the combined total of £311 million for the previous three years.

Source : Business Insurance

Thomson Reuters July 12, 2019 (Reuters) — The U.S. Justice Department is pursuing a criminal probe into whether Johnson & Johnson lied about potential cancer risks of its talcum powder and has convened a grand jury in Washington, Bloomberg reported Friday, citing people with knowledge of the matter. The Bloomberg report said the grand jury was looking into documents related to what company officials knew about any carcinogens in their products. J&J disclosed in its annual report in February that it had received subpoenas from the Justice Department and U.S. Securities and Exchange Commission related to the ongoing baby powder litigation but did not give more details.

Source: Business Insurance

Thomson Reuters July 12, 2019 (Reuters) — New Orleans officials warned city residents to stock up on supplies and prepare to shelter in their homes on Friday as “life-threatening” Tropical Storm Barry was poised to come ashore as possibly the first Atlantic hurricane of 2019. While the tempest did not yet have hurricane-force winds, it was forecast to bring torrential rains of up to 25 inches in certain places, which officials said risked flooding along the already swollen lower Mississippi River.

Source: Business Insurance

July 10, 2019 Heavy rains and floods struck northern Spain on July 8, damaging roads, inundating retailers and causing power outages in the region, Daily Mail reported. The floods swept away cars, disrupted railway services and forced authorities to close six roads in the Navarra region.

Source: Business Insurance

July 10, 2019 U.K.-based Information Commissioner’s Office is proposing to fine U.S.-based hotel operator Marriott International Inc. £99.2 million ($124 million) under the General Data Protection Regulation after hackers stole 339 million guests’ records, The Guardian reported. The data regulator said that 30 million of the hacked guest records involve residents of 31 countries in the European Economic Area. U.K.-based Information Commissioner’s Office is proposing to fine U.S.-based hotel operator Marriott International Inc. £99.2 million ($124 million) under the General Data Protection Regulation after hackers stole 339 million guests’ records, The Guardian reported. The data regulator said that 30 million of the hacked guest records involve residents of 31 countries in the European Economic Area.