Hiscox Share Discussion Threads

[windsor430] 15/4/2020 10:54

Hope all of you who criticised my comment re: FCA are reading their statement!

"Mr Woolard (FCA CEO) admitted that following conversations with insurers, it was clear that most business interruption policies held by small and medium-sized businesses only had basic cover which did not include pandemics and therefore insurers had no obligation to pay out in relation to Covid-19."

Of course insurers have to pay out to fair claimants - but this is a small, vocal, minority & FCA statement is clear on insurers paying up... but how many will have to? Their CEO is saying - not many!

[harleymaxwell] 15/4/2020 10:17

any views on support lines

[danielinnes74] 15/4/2020 09:56

Agreed suet. Was a robust business with a rock solid brand until this sorry state of affairs. Personally I am irritated and mightily upset about how this is playing out. I guess they are caught between the Fianancial implications of paying out or the brand damage of not.

[suetballs] 15/4/2020 09:01

I was in good old LLoyd's when it went bust in the early 90's. The excellent Hiscox Syndicate 33 was one of the syndicates to save my bacon. Sorry to see Hiscox in such trouble now - but I have to say that it doesn't look pretty.
Suet

[danielinnes74] 15/4/2020 08:34

Windsor is in a minority here. I’m
Involved in this industry so must keep particulars to myself but two points:
1) their lawyers have their views but there is at least an equally robust opposing opinion
2) the brand damage from this is potentially irreparable

[our haven] 15/4/2020 08:06

Actually Windsor430, the point made about 'my word is my bond' is a fair one. Hiscox is known as a generous settlers of claims, so if the they are seen as the opposite then this will cause them damage if anyone else pays.I am a long term investor who is concerned but I think in the end they will not have to pay out and nor will others.

[sheikinstevens] 15/4/2020 08:06

Was that the text you presented yesterday and then removed? Why did you do that?

Your issue is you have taken 7b in isolation.

[effortless cool] 15/4/2020 08:00

Haha, you clearly don't.

I suggest that you get hold of Hiscox's "geo/specialty" policy wording, go to the section headed "Property - business interruption (venue)", then review clause 7.b and the policy definition of "notifiable human disease".

Once you have done that, you will be in a position to express an informed opinion.

[windsor430] 15/4/2020 07:54

I’m sorry to have to tell the shorters this so bluntly - but the insurers lawyers and policy wording will mean the claims don’t hold up.

[waikenchan] 15/4/2020 07:46

Suspect they didn't get enough reinsurance for something like a national shutdown as well, otherwise they wouldnt be trying so hard not to pay.

The reputational damage will be huge plus all the costly legal action.

[windsor430] 15/4/2020 07:45

Haha I do - and have read enough about this case / experienced enough around the insurance industry. Thanks for your concern though and expansive explanations to date.

[effortless cool] 15/4/2020 07:31

windsor430 - you do not understand the issue here.

[harleymaxwell] 15/4/2020 06:01

Think these guys are also big in the event cancellation market which won't be pretty....

[windsor430] 14/4/2020 21:48

Great PR effort by the claimant - but all insurers will have force majeure policies & their own cover + regulatory & Gov bodies dictating what happens. If the claims either don’t hold up or it’s a boisterous monitory, this 20% share price drop will look massively overdone with hindsight.

[danielinnes74] 14/4/2020 18:12

They are some serious problems here. Hiscox have an ‘ambiguousR17; wording in my opinion (compared to much tighter wordings elsewhere in the market) and that’s why why they have been in the weekends press. Troubled waters here I suspect

[essentialinvestor] 14/4/2020 15:50

Hiscox are more specialist is my understanding. Have these on a long term
watch list.

[effortless cool] 14/4/2020 15:40

No, but their policy wording is.

[beeks of arabia] 14/4/2020 15:23

Interesting times!

Is Hiscox' stance on this different to others in the industry?

[essentialinvestor] 14/4/2020 15:22

That's a very big call imv.

[effortless cool] 14/4/2020 15:15

In my view, it has the potential to bankrupt them.

[essentialinvestor] 14/4/2020 15:07

Not sure it's dangerous?, However potentially costly?...

[effortless cool] 14/4/2020 09:44

HSX in a very dangerous situation, I think.

[our haven] 09/4/2020 18:42

L&G could be a better choice, only time will tell but Hiscox is not a dog.