Global risk considerations for Insurance companies

By: Norton Rose Fulbright

Covid-19 risk matrix

Highlighted below are the key legal and operational risks to consider:


  • Employers’ liability
  • Business Interruption
  • Event cancellation
  • Travel insurance
  • Trade credit insurance
  • D&O insurance


  • Operational resilience
  • Business continuity planning
  • Outsourcing and third party risk management
  • Communications with customers and regulators
  • Complying with regulatory rules and guidance
  • Keeping up-to-date with regulatory measures

Insolvency and restructuring

  • Board review and contingency planning
  • Ability to meet contractual obligations
  • Supply chain problems
  • Financial market volatility
  • Financing arrangements

Claims handling

  • Claims response
  • Maintaining claims handling standards
  • Impact on regulatory capital
  • Evidence gathering and investigation
  • Keeping on top of emerging best practice

Supply chains and business interruption

  • Force majeure
  • Contractual liability
  • Supply chain vulnerability
  • Frustration
  • Material Adverse Change
  • Delay
  • Labour shortages
  • Termination / suspension
  • Contractual re – negotiation
  • Implications for credit agreements

Operational response

  • Poorly managed information flow and capture
  • Failing to track decisions, actions, risks and issues in a centralised location
  • Defensibility of any future claims
  • Lack of specialist legal expertise


  • Competitor collaboration during crisis / competition law waivers
  • Possible abusive pricing / other trading practices

Managing disputes

  • Breach of contract / claims for loss and damage / claims for delay
  • Enforcement ,including enforcement of security
  • Close-out valuation disputes
  • Gathering and documenting evidence
  • Mitigation
  • Reservation of rights
  • Access to courts / online judicial procedures

Financial impact

  • Contingency planning and board meetings
  • Directors’ liability
  • Impact on existing credit facilities
  • Financial covenants
  • Information requests
  • Cash flow
  • Asset valuations
  • Potential derivative actions


  • Material adverse change / termination rights
  • Effect on purchase price
  • Due diligence
  • Representations and warranties / disclosure
  • Signing documents remotely / validity of e-signatures


  • Employers’ duty to protect employees’ health in the workplace – travel and absence
  • Quarantines and restrictions
  • Remote working
  • Pay during absence – statutory sick pay and contractual payments
  • Personal data protection
  • Additional duties for other employees
  • Discrimination and human rights

Data protection/cyber

  • Data breaches
  • Personal data privacy
  • Collection and use of personal data
  • Remote working
  • Network security and risks from cloud-based services
  • Operational challenges

To keep up to date with the legal and regulatory implications as the situation evolves, please consult the Covid-19 page on our website

Take a look at the infographic and Here