Insurance claims bill for plane grounding in Russia; IAG appealing BI test case

TOP NEWS IN GLOBAL INSURANCE

* Fitch Ratings estimated that insurers and reinsurers could face claims as high as $10 billion in a worst-case scenario from the grounding of planes in Russia owing to sanctions. The lessors have hull and liability insurance, as well as specific aviation war cover, and will call on their insurance to be indemnified against expropriation of their planes, the rating agency added.

* The Insurance Council of Australia said it supports Insurance Australia Group Ltd.'s application for special leave to the High Court of Australia to appeal parts of the Full Court of the Federal Court of Australia's recent judgment in the second business interruption insurance test case. Two policyholders, The Taphouse Townsville Pty. Ltd. and LCA Marrickville Pty. Ltd., have each also filed applications for special leave to appeal to the High Court.

➤ Sport bans add another potential source of Russia-related insurance claims

Scott Schachter, Northeast entertainment leader at Risk Strategies, does not expect sports bans against Russia to hit insurers nearly as hard as cancellations related to the COVID-19 pandemic.

PROPERTY AND CASUALTY

* Zurich American Insurance Co. is facing allegations of stalling legal settlements and medical payments for mine workers in Montana who developed lung cancer and other diseases due to toxic asbestos exposure, The Associated Press reported.

* Atlanta-based insurtech startup Layr Holdings Inc. raised $10 million in a series A funding round led by HSCM Ventures. The company will use the funds to grow its team and expand its footprint among insurance agents and brokers.

* David Rosenzweig became the CFO of Ategrity Specialty Holdings LLC and its subsidiaries.

* NAU Country Insurance Co. appointed Michael Deal COO. James Korin will remain as the company's president and continue to oversee all aspects of the business.

LIFE AND HEALTH

* The BaFin financial regulator criticized life insurers in Germany for charging "significantly higher fees" of up to 4% for unit-linked contracts compared with classic insurance investment products. The regulator said the high costs could indicate an inadequate cost-benefit ratio for the investment products and reflect conflicts of interest for the insurers.

* Paris-based digital health insurance startup Alan SA is in discussions to raise funds at a €2.5 billion valuation, Bloomberg News reported, citing people familiar with the matter.

* Protective Life Insurance Co. has agreed to acquire automotive finance and insurance provider AUL Corp. in a transaction expected to close in the second quarter, subject to regulatory approvals and customary conditions.

* Eligible Ohio National Financial Services Inc. members voted to approve the company's acquisition by Constellation Insurance Holdings Inc. through a sponsored demutualization and conversion into a stock company.

* The National Healthcare Security Administration of China ordered provincial authorities to include COVID-19 antigen tests in the service catalog of their basic medical insurance programs as part of an interim measure, Xinhua reported.

REINSURANCE

* Pool Reinsurance Co. Ltd. named Tom Clementi CEO, effective April 4, subject to regulatory approval.

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