Source: Business Insurance

Gavin Souter July 09, 2019 The owners of an 831(b) captive that the Internal Revenue Service ruled did not qualify for various tax benefits is suing the lawyer who allegedly advised them to establish the microcaptive.Benyamin and Orna Avrahami, who own a jewelry firm and various other businesses in Phoenix, last week sued Celia Clark, a former partner and now of counsel at Clark & Gentry PLLC in New York, alleging that Ms. Clark and her firm knew that the “captive insurance strategies” she recommended “did not provide insurance recognized under the Internal Revenue Code,” court papers say. The Avrahamis’ relied on Ms. Clark for advice on “complex insurance and tax matters, including tax law and captive insurance,” according to the suit, which was filed in U.S. District Court in Phoenix and seeks class action status

Source: Business Insurance

July 08, 2019 The International Olympic Committee said that it paid nearly $13 million for games cancellation insurance for the Winter Olympics in Pyeongchang, South Korea in 2018, up from $5 million for the previous games in Sochi, Russia, Inside The Games reported. The run-up to the Olympics in South Korea involved increasing international tension after North Korea conducted several missile tests.

Source: Business Insurance

July 08, 2019 A Venezuelan official said that a power outage occurred at the Amuay and Cardon oil refineries in the Paraguana peninsula on July 6, Channel News Asia reported citing sources. Luis Stefanelli, a deputy at Venezuela’s parliament, said that production at the refineries has currently fallen to about 80,000 barrels of gasoline a day from 950,000 barrels previously during peak production.

Source: Business Insurance

July 08, 2019 A report by Swiss Re Ltd. found that nonlife primary insurers worldwide ceded $200 billion, or more than 8%, of direct written premiums to reinsurers in 2018, Asia Insurance Review reported. The report found that nonlife insurers’ cessions were higher in emerging regions in Asia, the Middle East, Africa and Latin America.

Source: Business Insurance

July 08, 2019 Sergei Levchenko, governor of Russia’s Irkutsk region, said that recent floods caused $454 million worth of damage in eastern Siberia, Crime Russia reported citing sources. Mr. Levchenko said that the floods damaged infrastructure and homes in 103 settlements and killed 22 people in the districts of Nizhneudinsky, Taishetsky, Tulunsky, Chunsky and Ziminsky.

Source: Business Insurance

July 08, 2019 Analysts said that typhoon Jebi’s insurance bill is likely to further escalate up to $16 billion and could further hit reinsurers and the insurance-linked securities sector, Artemis.bm reports citing sources. The analysts said that reinsurers such as Swiss Re Ltd. are expected to significantly strengthen their reserves for typhoon Jebi-related loss creep.

Source: Business Insurance

July 01, 2019 Mergers and acquisitions, a talent shortage, competition for business and anger over alleged disloyalty are fueling increased litigation in the brokerage sector as firms more frequently charge departing employees with violations of nonsolicitation and noncompete agreements. Recent litigation has included several suits filed in the wake of Marsh & McLennan Cos. Inc.’s acquisition of Jardine Lloyd Thompson Group PLC, but litigation involving several other brokers has also been filed. Amid warring brokers, risk managers — who can do business with whomever they choose — are left to decide whether to remain with their departing producer, stay with their current firm, or going to a third broker

Source: Business Insurance

July 03, 2019 U.S.-based risk modeling firm Air Worldwide Corp. has made its newly-published global catastrophe exposure database open and fully accessible to the public online to facilitate the exchange of data, Asia Insurance Review reported. Bill Churney, president of Air Worldwide, said that the open database will help insurers and reinsurers to set up a risk modeling standard and increase transparency.

Source: Business Insurance

July 03, 2019 France-based shipper CMA CGM S.A. and American President Lines Ltd. have introduced war risk surcharges for voyages to ports in the Middle East due to recent tanker attacks in the Gulf of Oman, Seatrade Maritime News reported. The shippers said that the surcharge will cover a significant rise in marine insurance rates in the region.

Source: Business Insurance

July 03, 2019 Businesses in Hong Kong said that recent protests could hit the city’s status as a global financial hub and force companies to shift their headquarters elsewhere, Reuters reported. Protesters damaged Hong Kong’s legislature building on July 1 over a controversial extradition bill, which would allow people to be sent to mainland China for trial.