According to a recent article in propertycasualty360.com, a web site focused on developments in the P&C market, broker and risk adviser Marsh is counseling “clients affected by the unrest in Egypt to file an interim payment request….” According to Alan Morton, senior claims advocate in Marsh's international division who is quoted in the article, “[t]he amount of the interim [payment request] is almost immaterial, because what it does is it forces a decision on coverage…. If an insurer doesn’t think the claim is covered, he’s not going to pay an interim.” Thus, according to Mr. Morton, the essential purpose of filing the interim payment request at this early stage is to “encourage an early debate” on the issue of coverage. Mr. Morton further advised that insureds should put all policies on notice as it is uncertain at this stage which coverage, if any, may apply to losses.
In addition, Evan Freely, global head of Marsh's political risk and trade credit practice, also quoted in the propertycasualty360.com article, noted that he foresees pricing for political risk insurance going up in the Middle East. Mr. Freely added, however, that he does not expect a “huge impact on pricing” in other parts of the world, but anticipates that “coverage will be underwritten a lot more in depth based on location and investors’ relationships with the government.”
The propertycasualty360.com article further states that a survey of carriers indicates many are not writing at all until they understand if any other countries—especially countries like Yemen, Jordan and Libya which have experience similar but less intense political unrest in recent months—can be affected by the uprising in Egypt. However, some carriers “see the area as a potential opportunity, looking at where the assets of the insured are located.”
The article also notes that, according to Beverley Marsden, associate director of Aon Risk Solutions’ crisis management practice, it is too early to tell if the events in Egypt will lead to covered losses
You can see the propertycasualty360.com article here: http://www.propertycasualty360.com/2011/02/09/marsh-spur-egypt-related-coverage-debate-with-inte