Daily briefing: Tuesday – Jacko’s legacy to Lloyd’s

The late Michael Jackson is the talk of the Lloyd’s market today. This is because reports emerged from the US over night that Lloyd’s had told a judge that it should not be liable to pay out $17.5m for the UK concerts that were cancelled after Jackson’s death in 2009.

Concert promoter AEG Live is claiming on the policy it took out for Jackson, but Lloyd’s has told them to ‘Beat It’, for two main reasons according to reports. First, Jackson’s full medical history was not disclosed. And second, it was not stated that Jackson was taking prescription drugs.

It’s a bold move by Lloyd’s to contest a claim that is firmly in the public spotlight. If it is successful, it would be a great win for Lloyd’s and give it some positive exposure. But if it fails to overturn the claim, it could face a backlash that could not only damage Lloyd’s reputation but the industry as a whole.

It is already facing claims that it is just trying to shy away from paying out. The lawyer for the Michael Jackson Estate, Howard Weitzman, told celebrity website TMZ: “This legal action is nothing more than an insurance company trying to avoid paying a legitimate claim by the insured.”

Giles leaves life sciences behind

We revealed today that Giles has found a buyer for its life sciences business. Giles announced to the market in April that it was putting the business up for sale to focus on other “key growth areas”. Giles described the business as a “small non-core” part of the group, but it will be pleased to have secured a quick sale to Lloyd’s broker Oamps.

It is also worth noting that Oamps’ recent appointment of former Giles retail managing director Howard Pearson is believed to have played a big part in securing the deal. Pearson was familiar with the business not only from his time at Giles, but previously at Miller Insurance, which owned the business before the retail division was sold to Giles in 2006.

BGL sticks with RAC

The sale of RAC is still rumbling on, with three private equity bidders all thought to be fighting over the business. But this has not stopped BGL’s affinity business Junction securing a new five-year deal to continue brokering RAC’s insurer panel, as we revealed today.

Danny Walkinshaw is digital news editor.