Mactavish

A massive thank you to all the sponsors that helped to make this year's Drawdown Operational Leaders' Summit Winter the biggest and best it has ever been! We saw a record number of attendees, exceptional engagement and received phenomenal feedback from everyone involved. Prestige sponsors: Alpha Group, Gen II Fund Services, HSBC Innovation Banking and Ontra Principal sponsors: Abacus Group, Mactavish, One Ten Associates and SEI Golf sponsor: HIGHVERN Strategic sponsors: ACA Group and Treble Peak #OLSW25

Thrilled to be sponsoring and have Steve Darrington and James O'Connor represent us at the Operational Leaders Summit next week.

Contingent BI cyber risk and losses rising, warns Allianz Retailers likely to remain in the line of fire Contingent business interruption (CBI) losses from cyber-related events are increasing as companies become more reliant on suppliers for IT systems and services, according to Allianz. CBI supply chain attacks accounted for 15% of Allianz’s large cyber claims by value in the first half of 2025, more than double the 6% recorded in the whole of 2024. For the first time, the insurer also experienced a significant claim where business interruption losses were triggered by technical failure. https://lnkd.in/e22ZUcMG

Judge loses patience with satellite litigation in insurance claim   A wonderful judgment this summer on a Covid BI claim, not so much on the legals but more on the commentary that came with it. Before diving in, a quick explainer on judicial language and how criticism works at the High Court.  The euphemisms are legion. ‘Novel’, as in legal argument or strategy, is best interpreted as hopeless; ‘unexpected’, as in evidence, generally means made up; and the Everest of all euphemisms, ‘surprising’ would be expressed down the Dog & Duck with the use of a one-syllable, four-letter expletive. Followed by off. In this context the Judge overseeing a trial of preliminary issues in the Bath Racecourse v Liberty Mutual dispute could barely have been more blunt when he started his judgment lamenting “… a yet further trial of preliminary issues concerning cover for [Covid] business interruption…”, following it up with “…it feels as if there has been a never-ending procession of such issues coming before the English Courts; testament, no doubt, to the extent of the losses suffered, but perhaps also to the ingenuity of lawyers (on both sides).” Ouch.  And did any of this serve any purpose? “It is questionable whether this process of identifying and resolving further preliminary issues has really hastened final resolution of the claim. [It]….left me wondering whether my answer on a particular issue would really make any material difference to the outcome in the long run.” While the judge was kind enough to thank the legal teams, Stewarts Law for the claimant and DAC Beachcroft for the defendants, for their efforts, the criticism still stands and could equally apply to any number of claims at the High Court. Litigation is taking too long, costing too much and not serving justice.  Time for the courts to act.   Mactavish creates a fairer market for policyholders. We are expert insurance buyers, designing policies that perform when called on and helping resolve disputes when they arise. 

Multi-million pound legal costs back in spotlight The extraordinary cost of litigation, insurance or other, is back in the legal lights. “HSF Kramer seeks £81m in costs from mega Russian aviation case” was one headline this week; “AerCap Wants £81M Costs from Insurers in Missing Jets Case” was another. Both stories relate to the same case, and the same insurance fail: AIG and other insurers refusing to pay out in full for the loss of commercial aircraft wrongly retained in Russia after the country’s invasion of Ukraine in 2022. The costs in this case are big, but they are not out of kilter when compared to other recent cases. Earlier this year the parties to the ‘dieselgate' emissions case currently going through the High Court tried to peg their costs at a combined £430m. Another earlier case that springs to mind, also involving HSF, saw the law firm’s then client, Royal Bank of Scotland, roundly criticised for running up £100m in costs defending a shareholder dispute. While these figures are staggering enough on their own, what they don’t explain are the machinations going on behind the scenes. Litigation is now so costly and time consuming, the barriers to entry risk becoming insurmountable for all but the deepest pockets. Pursuing an unpaid insurance claim through the courts will now take at least two years and is likely to cost seven figures. Sure, the successful claimant will get some of those costs back, but nowhere near the full amount. As a general rule of thumb standard costs are normally awarded at around 60% of the total spend. So you spend millions pursuing your claim, you waste years and you only get back a fraction of your costs. And guess what? Insurers know this. It is the most powerful bargaining tool they have and one they are not afraid to use. Luckily there are ways to overcome all this, but it’s not for the faint-hearted, or the inexperienced. Mactavish creates a fairer market for policyholders. We are expert insurance buyers, designing policies that perform when called on and helping resolve disputes when they arise. 

Oxford Colleges look to give Aviva a lesson in paying claims   Noise around Covid business interruption claims may have subsided, but the issue hasn’t gone away. All manner of companies, charities and other corporate entities are still fighting their corner trying to get payouts from their insurers, five years after the pandemic. The latest to hit the courts comes from 29 colleges at Oxford University, including the likes of Balliol, Brasenose and Wadham, who are suing their insurer Aviva. Like so many companies that were refused claims after having to shutter their operations during the Covid lockdowns, the Oxford colleges are suing in pursuit of what they feel is their legitimate settlement. The claim document states: "The Claimants suffered significant interruption and losses during the Covid-19 pandemic ... However, wrongfully and in breach of contract, the Defendant has in correspondence refused to provide such indemnity.” The clock is ticking on the limitation period for such claims, with most legal commentators eyeing a long stop date of March next year before claims become time barred. Expect a flurry of further lawsuits over the coming months.

LIVA is delighted to have acted as an insurance risk advisor for LDC backed Onecom on their acquisition of Gradwell, a business communications technology and cloud communications specialist. Together with our strategic partner Mactavish, the LIVA team was led by Clemens Kueppers and Andreas Pullinen. #WarrantiesandIndemnities #MergersandAcquisitions #ContingentRisk

We are delighted to announce the first speakers for this winter's Drawdown Operational Leaders' Summit. https://bit.ly/4mmJ4BW Join Debojit Mukherjee from Agilitas Private Equity, Travis DeForge from Abacus Group, Diana Meyel from Cipio Partners, James Bryden MBE from Patria Investments, Jason Howard from Headway Capital Partners , and Jonathan Hewitson from Kennet Partners for honest, focused discussions about what really works in private markets' operations. Places are free and strictly limited. Don't miss out, book today: https://bit.ly/4mmJ4BW Sponsors: Alpha Group, Gen II Fund Services, HSBC Innovation Banking, Ontra, Abacus Group, Mactavish, One Ten Associates, SEI, HIGHVERN, ACA Group, Treble Peak #OLSW25