The Financial Services Authority and the Lloyd's Franchise Board will put considerable pressure on insurers and reinsurers to quantify exposures to Hurricane Sandy promptly and accurately, CMS Cameron McKenna said in its Law-Now bulletin. A substantial loss at this stage of the year may have negative impact on insurers' and reinsurers' capital raising and solvency plans for 2013, which some have been close to finalising, it said as part of a broader look at the potential implications of the hurricane. Some indirect losses such as contingent business interruption will be harder to assess at this stage than, for example, exposure to property damage, it said. "The FSA and Lloyd's Franchise Board may impose certain time scales for quantifying exposures, which may be regarded as unreasonable by some insurers and reinsurers, but insurers and reinsurers may also find themselves having to answer to similar pressures from shareholders and other stakeholders," Alexander Denslow, partner, CMS Cameron
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