DelAgua Group’s Post

I’ve been asked a few times today about this news that Gold Standard has named MIGA as its only recognised insurance policy for CORSIA credits, thus I thought I would address it centrally here. At Kita, we have actively engaged with Gold Standard (and other standards) in this area. Gold Standard has been very constructive and collaborative in their engagement with the insurance industry, for example in terms of developing insurance eligibility requirements (thank you Hugh Salway). My understanding is that private insurance companies will be assessed separately in a formal process and announced publicly once this process is completed. As noted in the article below – “Gold Standard said it is developing a process to recognise insurance policies from third-party private insurance companies to support guarantees for the avoidance of double-counting under CORSIA, but did not say how long this process would take.” I am a huge fan of MIGA (and Kyoo-Won Oh in leading the insurance charge there on this policy), however without private insurance companies and the wider might of the global political risk insurance market, there will inherently be an insurance bottleneck. Insurance companies like Kita and our peers have different and beneficial approaches, and I think that only together can we all scale the market as needed within the timeframes required. Chris Slater Oka, The Carbon Insurance Company™ George Beattie CFC Coenraad Vrolijk CarbonPool Martin Lawless Islay Lord Eilís O’Keefe Alek Pillay James Kench, CFA https://lnkd.in/egS5bJqf

Incompliant cross border sales of insurance to Norwegian customers In the unsteady current economic market insurance is considered a safe haven and there is massive insurance capacity internationally. The combined ratios on non-life products reported from Norwegian insurers are relatively low, so the Norwegian market is considered attractive by foreign insurers. When preparing cross border sales, one common mistake made by international brokers and insurers is it can arranged solely on the basis of the rules of the Insurance Distribution Directive of 2016 (IDD). However, it is a minimum directive, and the Norwegian government has imposed stricter rules, both in the regulatory and non-regulatory legislation. The stricter rules often come as a surprise to foreign insurers. It is not transparent to them that for example IPID documents must also be issued to non-consumers unless it is stated otherwise in a written pre-sale document presented to the customer prior to the sale. Furthermore that it is mandatory in the same document to inform that it is not a member of the Norwegian non-life guarantee scheme, and it must be informed what similar schemes apply in the home state of the insurer and what benefits the customer may expect if the insurer becomes bankrupt. When the sale is made via agents, the agent fee must be disclosed with exact amounts in the same written pre-sale document. Compliance may be ensured with a pre-launch review. Unfortunately, the experience is often that such reviews are not made by lawyers, rather by foreign intermediaries, and in such cases the intermediaries' advice should be double checked. 

The changes and challenges of transportation insurance. #transportation #transportationindustry #transportationinsurance #trucking #truckingindustry #commercialtransportation #railindustry #railroad #railroads #lawyers #attorneys #litigators #litigation #lawfirm #insurance #insurancedefense #insurancelitigation https://lnkd.in/gHcF_XJG

Ensure You Can Insure Your Private Plane According to the insurance behemoth, Allianz, in a July 31, 2024 report, available at https://lnkd.in/gJyu-At7, aviation insurance premiums will hit a 20-year high in 2024. This is due not only to growing aviation enquiries but also from “soaring repair costs, lack of mechanics, runway, and ground incidents….” TAKEAWAY: Before agreeing to purchase an aircraft, especially before signing an LOI or purchase agreement, inquire of a specialized aviation insurance broker or aviation insurance carrier in general aviation about the cost and availability of insurance you may need or want. Do not be surprised by high rates and limited coverage amounts. Be prepared to purchase or lease of a private aircraft of a different size or type for which insurance is acceptable. If feasible, buy fleet coverage of large operators that may experience less difficulty in obtaining and negotiating rates for insurance. #generalaviationinsurance #businessaviationinsurance

Ronald Karauri, SportPesa founder and Kasarani MP, has joined other investors in launching Definite Assurance Company Limited, which received its general insurance license from the Insurance Regulatory Authority (IRA) on December 11, 2024, after raising Sh600 million in capital. The company's ownership structure includes Karauri with a 10% stake, while major shareholders are Mikaj Topgrains Company Limited (25%), Convenient Digicash Limited (25%), and Swingers Skypark Lounge Ltd (22%), with several smaller stakeholders making up the remainder. The new insurer's entry into the PSV insurance market comes at a difficult time, as motor vehicle insurance has consistently been a loss-making sector for insurers, with a Sh5.92 billion underwriting loss reported in 2023. The sector has seen significant disruption, with market leader Directline Assurance facing shareholder disputes and competitors Xplico and Invesco entering statutory management due to unpaid claims. Under newly appointed CEO Hezron Wambugu, recruited from Kenya Orient Insurance Limited, Definite Assurance will operate in a market where only nine insurers currently underwrite commercial buses and matatus. Definite Assurance’s strategic capitalization of KSh600 million and leadership under seasoned insurance executive Hezron Wambugu signal a calculated attempt to redefine risk underwriting and operational efficiency. However, the success of this venture will largely depend on how effectively it navigates the implementation of IFRS 17 standards and the increasing operational burden of regulatory compliance, while simultaneously addressing the sector's fundamental challenge of balancing affordable premiums with sustainable underwriting practices.

Is Insurance a blocker to the adoption of low carbon materials on construction projects? Answer – it needn’t be! This, I think, is the emerging conclusion from the UK Lower Carbon Concrete Group (LCCG) ongoing conversation with the construction insurance sector. This afternoon the WTW Construction team, with the LCCG, held a seminar with representatives from the construction and insurance sectors to move the conversation forward on this topic. The truth is that there is much that can already be done with established technologies to drive carbon out of concrete, well within the bounds of established best practice, that should be no cause for concern for insurers – so long as they are executed properly. The question really applies to emerging technologies – those for which established best practice does not yet exist, or is evolving, but which have an important role to play on our journey to Net Zero. But the answer to the question is similar to many other questions facing the construction sector regarding innovation – so long as risks are identified and responsibly managed, then there is no need for the risk profile of a project to increase due to engagement with these emerging concrete technologies. And the more we engage, the more the risks are understood, and the more optimistic the future for these materials in helping eliminate the carbon footprint of concrete. And as for many things in our sector, the best outcomes come from having the right people ‘in the room’ at the right time – working collaboratively to manage risk and secure the best outcomes for the project (as per PAS 2080!). Thanks to WTW for organising a great seminar this afternoon. And thanks to all the speakers.

Foreign Service Officers, did you know you may have insurance gaps during your international move/PCS! You might be thinking, "how do I avoid that?"... This short article explains 👇 Find essential tips on avoiding insurance gaps with international insurance specifically designed for the #ForeignService community. Your car and valuable are always financially protected while in transit, at post, or back at home in the US: bit.ly/49HsDK6 #internationalinsurance #ClementsWorldwide #MissionsAbroad #overseas #liveabroad #moveabroad #workabroad #insurancegaps #pcs

Marine Insurance Challenges in the Middle East The marine insurance sector in the Middle East faces several challenges, but it also holds significant opportunities for growth. Among the key challenges are: 1. **Geopolitical Tensions:** The region experiences various conflicts and tensions that can affect the safety of maritime navigation and shipping, leading to increased risks for cargo transportation. 2. **Piracy:** Piracy remains a threat in some parts of the region, necessitating robust insurance measures to protect vessels and cargo. 3. **Economic Fluctuations:** Volatility in oil and gas prices impacts the economies of Middle Eastern countries, which can affect shipping operations and marine insurance. 4. **Infrastructure Challenges:** Some ports and maritime infrastructure may require development and modernization to improve efficiency and reduce risks. Despite these challenges, there are substantial opportunities in the market: 1. **Economic Growth:** Many countries in the region are investing in port development and expanding their trade capacities, increasing the volume of maritime shipments. 2. **Technology and Innovation:** The adoption of modern technologies such as artificial intelligence and big data can help improve risk assessment and claims management more effectively. 3. **Regional Cooperation:** Enhancing cooperation between countries in maritime security and anti-piracy efforts can help reduce risks and improve the overall environment for marine insurance. 4. **Economic Diversification:** Diversifying economies away from reliance on oil and gas opens new avenues for trade and shipping, boosting demand for marine insurance. In summary, while there are significant challenges in the Middle East, innovation, investment, and cooperation can contribute to sustainable growth in the marine insurance sector.

Foreign Service Officers, did you know you may have insurance gaps during your international move/PCS! You might be thinking, "how do I avoid that?"... This short article explains 👇 Find essential tips on avoiding insurance gaps with international insurance specifically designed for the #ForeignService community. Your car and valuable are always financially protected while in transit, at post, or back at home in the US: bit.ly/49HsDK6 #internationalinsurance #ClementsWorldwide #MissionsAbroad #overseas #liveabroad #moveabroad #workabroad #insurancegaps #pcs

ATEC Tourism Tutorial - Playing Well with Others - Partner Insurance Pitfalls and Procedures for Tour Guides and ITOs. Given the risks and liabilities in the tourism industry, the right insurance coverage can minimize incidents. Join ATEC with Jonathan Ross from JMD Ross Insurance Brokers and Greg Esnouf AFSM from Tour Guides Australia on Wednesday 7th August, 11am (AEST) for an informal discussion around key insurance considerations for tour guides and inbound tour operators. Learn the differences between insuring independently and extending coverage under a lead tour operator policy. From an ITO perspective, understand the importance of vicarious liability and how to close easily missed risk gaps when placing insurance and working with contractors and suppliers from real claim examples. Register here to join Jonathan and Greg as they share tips on securing coverage for high-risk tours, maintaining good insurance records, leveraging ATEC’s membership for tour guide liability insurance, and optimizing ITO insurance. Members: https://lnkd.in/gC5FVExP Non-Members: https://lnkd.in/gd98D-Du