US$600m in property losses prevented during Hurricane Sandy by coastal wetlands
As communities across the Southeast US and the Caribbean count the cost of flood damage during Hurricane Matthew, a study, ‘Coastal Wetlands and Flood Damage Reduction’ has quantified how much protection natural coastal habitats provide during hurricanes. Using the latest modelling techniques scientists from the conservation, engineering and insurance sectors studied the impact of Hurricane Sandy in the Northeast US in 2012, when New York and New Jersey were badly hit by storm surges. The study found more than US$625m in property damages were prevented during this natural catastrophe by coastal wetlands along the Northeast coast. Without them the damage bill would be much higher for Sandy and other predicted hurricanes. Where wetlands remain, the average damage reduction from Sandy was greater than 10%. Experts within the study team expect that the analyses of the effects of Hurricane Matthew earlier this month will demonstrate similar protections.
UK businesses ignorant of unfair contract rules
Research carried out by the Competition and Markets Authority suggests that a majority of UK businesses don’t fully understand the rules on unfair terms. Research for the CMA also revealed that some businesses think a signed contract is final, not realising that they can’t enforce a term against a consumer if it’s unfair. Others may copy terms from larger businesses or competitors, assuming incorrectly that these will be automatically fair and legally binding.
Commercial Insurance Awards: Call for entries
The deadline for entries for the 4th annual Commercial Insurance Awards is fast approaching. The showcase for excellence within business insurance, the Commercial Insurance Awards, hosted by CIR Magazine, represents the pinnacle of best practice, a chance to learn from the best, a fantastic gala dinner, entertainment and the chance to network.
London company market records £21.6bn in premium income for 2015
Overall premium income for the London company market in 2015 was £21.645bn, a new report by the International Underwriting Association has revealed. Gross premium written in London totalled £15.150bn, while a further £6.495bn was identified as written in other locations, but overseen by London operations.
VIEW: Surprise! An element of risk
As a risk manager, one of my jobs is to minimise – though not always remove – the risk of surprise. But when the EU referendum result was announced, I began to wonder to what degree risk managers everywhere managed to achieve this. Generally, as risk managers, we have a good handle on the values, behaviours and culture that influence how decisions are made within our firms – we think we understand the ‘mood’ of the company. But this is just one of the areas where the UK’s vote to leave the EU resonated with me as a risk manager.
Augmented and virtual reality to create US$20bn risk by 2020
Augmented and virtual reality technologies are creating a new dimension of risk and insurers should do more to keep up with these developments and seize opportunities, according to a new report out today. AR and VR technologies are anticipated to generate potential losses to the value of US$20bn by 2020. Consumers will increasingly suffer accidents whilst playing AR games and companies will increasingly become responsible for securely storing ever more sensitive information, such as location data.
Cost of two weeks’ disruption to small businesses revealed
More than 550,000 small businesses in the UK have been forced to halt trading due to a disruption in the last two years, according to new research by small business insurer Direct Line for Business. The average small business reports that it would last around eight months and three weeks if it were forced to halt trading, with sole traders (nine months, one week) faring better than micro-businesses – businesses employing fewer than 10 people - (nine months) and small businesses (six months, two weeks).
CBI: Third runway at LHR great news for business
After decades of debate, the Prime Minister has given the green light to expand the UK’s aviation capacity, which will come as an enormous relief to firms in every corner of the country, according to CBI president, Paul Drechsler. “A new runway at Heathrow is really fantastic news, especially as the country has waited nearly 50 years for this decision. It will create the air links that will do so much to drive jobs and unlock growth across the UK, allowing even more of our innovative, ambitious and internationally focused firms, from Bristol to Belfast, to take off and break into new markets," he said.
IUA calls for bilateral trade deal for reinsurance
Improvements in the efficiency of reinsurance regulation are at risk of being undone if a covered agreement between Europe and the US is not reached, the International Underwriting Association (IUA) has warned. In recent years collateral requirements for international firms reinsuring US risks have been substantially reduced allowing capital to be deployed more effectively and reducing cost unnecessary pressures, but with the introduction of Solvency II difficulties have arisen with new rules affecting US firms that are not deemed to be subject to an equivalent regulatory regime. And it is possible that this could bring to a halt any further progress in further reducing US collateral barriers.
CIR speaks to FM Global’s Simon Baker-Chambers about business resilience in the waste-to-energy sector
Deborah Ritchie provides a summary of some of the latest stories in business risk, insurance and resilience
AGCS partners with BAE Systems on cyber risk solution
Biggest risk to confidentiality and IP integrity revealed
2017 risk predictions: Legal eagles cast their eyes over insurance industry
Risk Management Awards – host announced
Construction industry at greatest risk of modern slavery
London Market insurers team up to address terrorism risks
Modern slavery rife as companies struggle to track supply chains
Swiss Re launches cyber insurance product for German market