In the timeless style of The Day Today, we offer you some handy insurance news biscuits to dunk in your morning brew.
I’M AN AMERICAN, GET ME OUT OF HERE
Purbeck has calculated that interest on the average Personal Guarantee backed CBIL loan of £766,000 could amount to £144k at 7% interest to £327k at 15% interest.
Todd Davison, MD of Purbeck Personal Guarantee Insurance said: “With some businesses seeing sales driven down by as much as 50% during the pandemic, reports suggests the number of insolvencies could potentially be even higher than at the height of the global financial crisis back in 2009. It is critical that businesses look ahead at the loan repayments they will need to make, watch for the insolvency warning signs and seek expert advice on next steps such as turnaround finance; refinancing; Time to Pay; Company Voluntary Arrangements or Administration.”
ARAG BUYS DAS
The German ARAG Group, currently active in 19 countries, has acquired DAS Legal Protection Inc. in Canada which is part of the Munich Re / ERGO Group. Founded in 2010, the Toronto-based company is a leading Canadian managing general agent specializing in legal expense insurance with premiums under management of around 19.5 million euros in 2019. The product portfolio comprises legal expenses insurance products for families, landlords, condominiums/stratas and small businesses in Canada. The current Canadian staff of DAS will be retained.
SOUTH KOREA OPENS SANDBOX
The Financial Services Commission (FSC) of South Korea plans to allow third-party digital platforms to sell non-life and micro-insurance as part of the country’s financial ‘sandbox’ program, says GlobalData. The move is expected to increase the e-commerce share in South Korea. The sandbox program aims to promote insurtech companies by easing regulations and encouraging innovation, says GlobalData, a leading data and analytics company.
GlobalData reveals that e-commerce channel accounted for 81.4% of life insurance premium but just 4.5% in non-life segment in 2019. On the other hand, agencies accounted for 44.3% of non-life insurance premium during the year.
Mahitha Kasireddi, Insurance Analyst at GlobalData, comments: “This is primarily due to complicated terms and risk coverage associated with non-life policies which need interaction with brokers or agents. Currently, e-commerce sale of insurance is through insurance entities only and the new regulation will allow third-party digital providers. The changes in regulation once implemented will help increase the share of e-commerce channel in the non-life segment to 7.7% in 2024.”