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A look at tax liability insurance (With Giles Hambly)
In a special cross-over episode with our sister podcast Taxing Matters, this episode looks at the tax liability insurance. Peter is joined by Alice Kemp, host of Taxing Matters and Giles Hambly, Tax and M&A insurance specialist broker at Gallagher. We discuss what tax liability insurance is, how it works in practice and why many businesses are now choosing to take it out.
We start by discussing what tax liability insurance is, Giles explains it is a form of cover taken by a business to protect them if the tax authority challenges a transaction. What that means is if you undertake a transaction or you sell a product in a certain way, you need to meet certain thresholds to qualify for an exemption, such as capital gains exemption, corporate tax exemptions or VAT exemptions. Those rules are highly complex, and, in many cases, there are uncertainties about how it applies to your fact pattern. And so typically what you would do is you would go and get advice from a tax advisor, on whether you meet the thresholds for an exemption and they will judge whether they believe you are able to qualify for it. However even with expert advice there's still a risk that the tax authorities would disagree with the position taken and dispute it. So, a tax liability policy would cover the individual or business in that scenario.
We then look at some of the practicalities of tax liability insurance, working through an example of the risks and exposures this kind of policy would cover in an M&A scenario. We also discuss the structure of the tax liability insurance market and how they need to consider the different jurisdictions involved when underwriting the policy.
Finally, we explore if there are any ethical issues that could come into play in this kind of policy. Giles explains that there are not these kind of issues. These policies are designed to protect against uncertainties in the rules and that if you were trying to achieve a tax advantage, it would be very challenging to get that position insured.
We hope you enjoyed this special crossover episode of Insurance Covered, many thanks to Alice and Giles for joining us. If you did enjoy, please subscribe to be notified when new episodes are released.
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8. Insurance as the great enabler (Dr. Franziska Arnold Dwyer)
28:59Welcome to Insurance Covered, the podcast that covers everything insurance. In this episode Peter is joined by Dr. Franziska Arnold Dwyer. In this episode they discuss her new book, Insurance, Climate Change and the Law, which among other things looks at insurance as the great enabler for change.In this episode we cover:Why Franziska made the leap from private practice to academia Why she decided to focus on insurance and climate change in her bookWhy Franziska believes insurers should actively adopt a role that forces positive changeThree concepts 'insuring green', 'not insuring brown' and 'greening insurance' . The challenges insurers will likely face as they become the enablers. We hope you enjoyed this episode, if you did please subscribe to be notified when new episodes release.
7. Insurance for politicians (With Avril le Pitre)
15:37Welcome to Insurance Covered, the podcast that covers everything insurance. In this episode Peter is joined by Avril le Pitre, Founder and CEO of Adverse Selection, a brand new MGA that offers protection for politicians.In this episode we cover:How Avril identified this need for politicians insuranceWhat the policies cover and how many politicians are purchasing this insuranceJurisdictions that they currently cover and possible expansionsNew products Avril is looking to launch in the futureWe hope you enjoyed this episode, if you did please subscribe to be notified when new episodes release.
6. The 5 secrets to handling large claims (With Sarah Howell)
32:33Welcome to Insurance Covered, the podcast that covers everything insurance. In this episode Peter is joined by Sarah Howell, Claims Manager at Liberty Specialty Markets, and the topic for discussion is the 5 secrets to handling large claims.In this episode we cover:Sarah's career in insuranceWhat makes a 'large claim'Sarah's 5 secrets on how to effectively manage large claimsWhich of the 5 secrets is the most importantWe hope you enjoyed this episode, if you did please subscribe to be notified when new episodes release.
5. The birth of an MGA (With James Sterling & Charles Boorman)
31:13Welcome to Insurance Covered, the podcast that covers everything insurance. In this episode Peter is joined by two guests, Charles Boorman, CEO and James Sterling, Head of Claims, at Kayzen Specialty a new MGA, and in this episode we discuss the story of how Kayzen was formed.In this episode we discuss:A recap on what an MGA actually is and what role they play.How MGA's differ from insurers.Who Kayzen are and what lines of business they write.Why Charles decided to start an MGA.Why Kayzen decided to both underwrite and manage the claims.The plans for Kayzen's future.4. On being the Director General of the ABI (With Hannah Gurga)
30:10Welcome to Insurance Covered, the podcast that covers everything insurance. In this episode Peter is joined by Hannah Gurga, Director General of the ABI, and they will be discussing Hannah's role at the ABI. In this episode we cover:An overview of the ABIWhat the role of Director General entails and if it differs to that of a CEOHow the governance of the ABI is organisedThe ABI's current 3 year strategy, the aims of it and what progress has been madeThe issues Hannah has on her radar for the insurance industryWe hope you enjoyed this episode, if you did please subscribe to be notified when new episodes release.3. A look at kidnap and ransom insurance (with Charlie Hanbury)
32:42Welcome to Insurance Covered, the podcast that covers everything insurance. In this episode Peter is joined by Charlie Hanbury, CEO of Samphire MGA, and in this episode they will be discussing all things K&R, that's kidnap and ransom insurance. In this episode we cover:What kidnap and ransom insurance coversHow common kidnap is around the worldWho buys this kind of cover and why?How kidnap and ransom insurance has developed in the last century and how it may develop in the futureWe hope you enjoyed this episode, if you did please subscribe to be notified when new episodes release.2. Moral hazard: the dark heart of insurance (With Robert Hartwig)
36:36Welcome to Insurance Covered, the podcast that covers everything insurance. In this episode Peter is joined by Robert Hartwig, Associate Professor of Finance at the University of South Carolina. I this episode they discuss the concept of moral hazard in insurance. In this episode we cover:What is meant by the term moral hazard.The two forms of moral hazard.How insurers protect themselves against moral hazard.The other side of moral hazard, can it actually be a good thing as well?Insurance as an enabler, providing a financial safety net for when risk goes wrong. Links between moral hazard and the climate crisis.We hope you enjoyed this episode, if you did please subscribe to be notified when new episodes release.
1. The insurance of coral reefs (With Sarah Conway)
29:53Welcome to Insurance Covered, the podcast that covers everything insurance. In this episode Peter is joined by Sarah Conway who is a Director in WTW’s Disaster Risk, Finance & Parametrics team, leading the Ecosystem Resilience practice. In this episode we discuss insurance of coral reefs and climate finance.In this episode we cover:Why coral reefs need insurance.The importance of coral reefs.How this insurance product works and how the parametric policy is triggered.How the issue of insurable interest is resolved.We hope you enjoyed this episode, if you did please subscribe to be notified when new episodes release.
32. 100th Episode Special: On Being the Chairman of Lloyd's of London (With Bruce Carnegie-Brown)
37:16Welcome to Insurance Covered, the podcast that covers everything insurance. In this special episode Peter is joined by Bruce Carnegie-Brown and they discuss his role as the Chairman of Lloyd's.In this episode we cover:How Bruce came to be the Chairman of Lloyd'sThe role Lloyd's plays in the UK and global insurance market.Bruce's involvement in CUVVA, an app that allows users to purchase short term motor insurance.The future of Lloyd's of London and how they can remain relevant in the coming decadesThe current challenges facing the insurance market.We hope you enjoyed this episode, if you did please subscribe to be notified when new episodes release.