New broker committee to be launched in 2020
The London and International Brokers’ Association (LIIBA) is to launch a new committee in 2020: the Broker Placing Committee (BPC). It will replace LIIBA’s Broker Placing and Electronic Development Committee
Downstream market facing US$500 million Port Neches refinery loss
The beleaguered downstream energy market is facing the prospect of a $500mn loss in relation to a large fire at TPC Group’s petrochemical plant in Port Neches, Texas.
IUA welcomes registration and testing for drone pilots
Registration requirements and the introduction of an online test for UK drone operators have been welcomed by the International Underwriting Association (IUA).
The safety measures have been promoted by the IUA for a number of years and recommended to government in industry consultation papers.
France to Require Insurers, Banks to Run Climate Change Stress Tests in 2020
France’s financial regulator will subject banks and insurers to climate change stress tests next year, central bank governor Francois Villeroy de Galhau said on the 29th November.
Investors are increasingly putting pressure on companies to make concrete steps to helping implement the UN-backed 2015 Paris Agreement to avert catastrophic global warming.
In France, banks and insurers – which have been required by law to disclose climate risks since 2016 – are also facing pressure from regulators.
“We will run climate stress tests for French banks and insurance next year, ”Mr Villeroy told a green finance conference in Paris, without giving details about what aspects of the institutions’ operations or investments would come under scrutiny.
“This will be very important progress in order to assess the kind of climate risks which are already nascent in banks and insurers’ balance sheets,” he added.
Mr Villeroy, who also heads France’s ACPR financial regulator, said financial institutions would be stress tested against two or three climate change scenarios and that the results would be made public afterwards.
The Bank of England said in October it would stress test the financial system under various climate “pathways” and the European Central Bank said earlier this month it was also considering it.
In France, the financial sector is also under regulatory pressure to step up efforts to reduce its exposure to the coal industry.
“It is absolutely necessary that the risk of financing coal plants is quickly reduced on French banks’ balance sheets,” Mr Villeroy said in an interview published in the newspaper La Croix on the 29th November.
The financial sector committed in July to disclosing plans to pull out of financing the coal industry by the middle of next year.
French bank Société Générale and French insurer AXA said this week they would exit the coal sector by 2030 in OECD countries and by 2040 for the rest the world.
French bank BNP Paribas said last week that it would stop financing the thermal coal sector by 2030 in the European Union and 2040 worldwide.
Insurers withdrawing cover from coal projects double in 2019
The number of insurers withdrawing cover for coal has more than doubled in 2019 as the industry’s retreat from the sector accelerates and spreads beyond Europe, the Unfriend Coal campaign revealed on the 2nd December in its third annual scorecard on insurance, coal and climate change.
Aviva launches specialised insurance for renewable energy
British multinational insurance company Aviva has launched an integrated package of insurance designed specifically to support large companies in the complex market of renewable energy, including onshore windfarms, solar power and battery storage.
Arthur J Gallagher set to take 100% ownership of Capsicum Re
Global insurance brokerage Arthur J Gallagher has agreed and signed heads of terms with specialty reinsurance brokerage Capsicum Reinsurance Brokers (Capsicum Re), with a view to Gallagher increasing its investment in Capsicum Re to 100 percent ownership.
Munich Re closes US$200 million oil & gas securitisation financing
Munich Re Reserve Risk Financing (MRRF), a wholly-owned subsidiary of Munich Re, has closed a US$200 million securitised financing with Diversified Gas & Oil (DGOC’s), a US-based owner and operator of natural gas, natural gas liquids, oil wells, and midstream assets.