BELGIUM Law and Practice Contributed by: Hugo Keulers, Sandra Lodewijckx, Tine Meurs and Thomas Verheyen, Lydian
recent published Belgian case law available on the interpretation of such clauses. 7.4 Supply Chain and Systemic Loss Events There have been no new categories of insured losses or aggregation issues because of geopolitical dis- ruptions regarding supply chains. However, due to changes made to international treaties, there have been specific questions on the insurability of risks related to the defence industry. 7.5 Forward Outlook and Market Response Underwriters will likely remain critical when faced with demand for marine and credit risk cover involv- ing areas with increased geopolitical tensions. As to disputes, it can be expected that insurers will closely follow up on claims where certain clauses that are rel- evant in case of geopolitical turmoil (eg, aggregation clauses, war risk exclusions and exclusions of pure economic loss) would be at stake, to avoid negative precedents. A similar evolution was seen during the COVID-19 pandemic. 8. Emerging Risks 8.1 Market Overview of Emerging Risks The emerging risks in the insurance market include the following: • Climate change – increasing frequency and severity of extreme weather events are reshaping insurance policies and premiums. • Artificial intelligence – AI is transforming underwrit- ing and claims processing, making it more efficient but also presenting new challenges. New technolo- gies, including AI, increase the risk of fraud and phishing, which trigger further insurance needs for financial service providers and their clients. • Cybersecurity – the rise of cyber threats neces- sitates stronger security measures and increased demand for cyber insurance. • Technological concentration – the concentration of technological power is creating new risks that insurers must navigate. • Geopolitical shifts – changes in global politics and economic conditions are impacting insurance strat- egies and risk management.
These risks are driving significant changes in the insurance landscape, necessitating adaptation and innovation from insurers. 8.2 Impact of ESG on Underwriting and Insurance Litigation The insurance industry in Belgium is undergoing a significant transformation driven by the integration of environmental, social, and governance (ESG) factors, and there is an ongoing debate in Belgian politics on how the insurance industry could do more in cases of natural disasters caused by climate change. These factors are reshaping the industry by influenc- ing product development, innovation, and business strategies. Some examples: • Product Development – insurers are introducing new policies and coverage options that specifically address environmental risks, such as battery parks, renewable energy insurance for wind farms and solar power installations. • Risk Assessment – ESG factors are being incor- porated into risk assessment models to better understand and manage the risks associated with policies, leading to more sustainable and resilient outcomes. • Investment Portfolios – insurers are shifting their investment portfolios towards greener assets, aligning with the EU’s Green Deal objective of cli- mate neutrality by 2050. • Customer Engagement – ESG is reshaping the insurance industry by promoting social equity and enhancing governance practices, which are crucial for building trust and sustainability. • Technological Integration – the insurance value chain is being leveraged by advanced technology to automate claims processing, improve customer service, and enhance data systems for personali- sation and efficiency. 8.3 Data Protection Laws The increased public sensitivity around cyber inci- dents means that insurers are expected to do more for their insureds when confronted with a cyber attack and resulting loss of data. However, reputational dam- ages caused by such incidents are often very hard to prove under Belgian law.
31 I NSURANCE L I T IGATI O N 2026
CHAMBERS.COM
Powered by FlippingBook