This year started with immediate challenges for the insurance industry, with devastating bushfires across the Tasman and the emergence and global spread of COVID-19. The threat that these events pose to life and health is naturally the most pressing concern. However, they also have significant economic consequences and resulting impacts upon insurers.
In our first edition of Cover to Cover for 2020, we look at the impact of these events and the issues they raise for the insurance community. We also provide a regulatory update on the Government’s review of insurance contract law and the Financial Markets (Conduct of Institutions) Amendment Bill (CoFI).
We also cover the Court of Appeal’s decision in the “Right2Drive” litigation, which deals with at-fault drivers’ liability for replacement car hire costs incurred by the not-at-fault party, in circumstances where the not-at-fault driver would not in fact be charged.
Finally, we look at the latest earthquake insurance cases from the High Court and the Canterbury Earthquakes Insurance Tribunal. These include cases on time limitations, an important case about insurers’ liability for defective repair work and two decisions on policy interpretation issues.
