Alan Levin, a Partner in Locke Lord’s New York and Hartford offices, and Nick DiGiovanni, Chicago Partner and Chair of the Firm’s Reinsurance and Insurance Litigation Practice Group, were quoted in a Law360 article examining trends in reinsurance markets, including a predicted increase in activity.
Levin noted that the reinsurance market, like most lines of insurance, is hardening, with capacity decreasing slightly as a result of climate-related disaster claims, large payouts for ransomware and cyberattacks and the impact of social insurance.
"Reinsurers are going to have to protect their bottom line with both retention and rate, based on what we are seeing on the loss side,” Levin added.
DiGiovanni said he foresees disputes in the reinsurance space over high-dollar event cancellation coverage related to COVID-19, noting event wording and hours clauses will be areas of contention.
"If you have to choose 162 hours for [a COVID shutdown], when does that start? When the California governor shut down the state? When the first case was reported? There are a lot of unanswered questions ... and there are going to be disputes," he said.
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