National standards body, BSI, the Department for International Trade and the Department for International Development, have together launched the Commonwealth Standards Network -- a platform for Commonwealth countries to exchange ideas, share best practice and impart knowledge.
The National Counter Terrorism Security Office (NaCTSO) has announced a change in the way counter-terrorism awareness training is provided to businesses. Launched today, the ACT Awareness eLearning product will provide nationally accredited CT guidance to help industry better understand, and mitigate against current terrorist methodology.
Ecclesiastical has published a new guide to help brokers support their charity clients defend against digital risk. The new guide, which has been produced with the support of the Charities Security Forum, provides information on the range of cyber threats they could face -- from ransomware, malware and denial of service to phishing, password attacks and human error. It also provides a wealth of practical advice on mitigating these risks, including guidance on protecting against data breaches.
Sedgwick has finalised the purchase of Cunningham Lindsey. The combined organisation, which includes Vericlaim, will operate globally under the Sedgwick brand. Dave North will continue to lead the company’s executive council, now comprising global chief financial officer Henry Lyons, group presidents Mike Arbour and Bob Peterson, and Jane Tutoki, who previously served as global CEO of Cunningham Lindsey and has been appointed vice chair of Sedgwick.
Cloud-based office solutions are coming under increasing attack from cyber criminals, with the majority of incidents involving compromised business email accounts. This is according to the Beazley Breach Response Services team, whose Q1 2018 figures increased sharply since the previous quarter. The three sectors most affected were financial services, healthcare and professional services.
The NCSC is issuing advice to the UK telecommunications sector regarding the potential use of Chinese state-owned ZTE equipment and services. Technical director of the National Cyber Security Centre, Dr. Ian Levy, has written to telecommunications organisations regarding the potential use of ZTE equipment and services in the UK telecommunications infrastructure environment.
Auto manufacturers could face significant disruption as a result in the slowdown of the supply of batteries for electric vehicles. This is according to research from JLT Specialty (JLT) – the specialist insurance broker and risk consultant which showed that eight of the 11 principal countries which supply key raw materials for electric vehicle (EV) batteries, such as cobalt and lithium, are in territories designated as at high or very high risk of disruption
Despite the prevalent concerns around artificial intelligence, consumers are surprisingly comfortable with the use of the technology in healthcare. This is among the findings of a US-based survey conducted by SAS, which found that when presented with a variety of real-world AI scenarios, a majority of people were at ease with AI in healthcare, and more comfortable with AI in healthcare settings than banking or retail.
Tokio Marine Kiln has launched a new cyber insurance and services policy. Provided by former government intelligence experts XCyber, Cyber Ctrl provides policyholders with an intelligence-based critical alert service that detects, analyses and reports on potential attacks. Policyholders also receive a monthly summary of the cyber activity that could affect their business and an alert notice for any critical issues that are detected.
The CMA has today published advice for businesses operating joint ventures to help them comply with competition law. The group's advisory follows a recent case where two businesses in a joint venture were fined £1.7m by the CMA for agreeing to share the market under the cover of a joint venture agreement.
The Risk Management Awards are open for entries. Now in their 9th year, the Risk Management Awards recognise those individuals, organisations and teams that have significantly added to the understanding and practice of risk management. Judged by an independent panel of experts for exceptional performance, the awards provide an opportunity for organisations and individuals to showcase their best products, projects and people.
HawkSight SRM is continuing the expansion of its HawkSight Software interface capability with the addition of tracking data from Vismo. Its patented Smartphone Tracking Application enables GPS tracking to locate individuals travelling anywhere in the world via their smartphone, tablet or personal GPS tracker.
It remains a challenge for risk professionals to clearly demonstrate the value of making resources available for ERM. In view of this continuing challenge The IRM has published two practitioner guidance documents for IS0 31000 and COSO. There are many recommended approaches to enterprise risk management (ERM) and several different guides and risk management system standards have been published in recent years. These latest guides explain the approach used in the ISO/COSO ERM frameworks and identifies the importance and relevance of these frameworks. These guides also outline the practical application of the ISO and COSO ERM frameworks and provide commentary on implementation.
Lack of trust in sharing economy platforms is the key factor behind a lack of growth in these services among consumers, according to new research from Lloyd’s. The insurance market calculates that less than a fifth of consumers currently use sharing economy services, despite recognising the cost and other benefits.
Business group the Confederation of British Industry has outlined a number of sector-specific considerations relating to the streamlining of regulations as part of ongoing Brexit negotiations. The CBI’s study is based on thousands of conversations with UK businesses, as well as dozens of trade associations, and outlines the regulatory needs of 23 industry and service sectors, of which 18 prefer convergence or alignment for the majority of regulation that matters.
The shortlist for the 2018 Business Continuity Awards has been announced. Now in their 20th year, the Business Continuity Awards recognise those business continuity, security, resilience and risk professionals whose innovative strategies and industry savvy make them stand out above the rest. This year's sponsors include Barclays, The City of London Corporation, ClearView Continuity, CMAC Business Continuity Transport, Daisy, Fortress Availability Services, PlanB Consulting and Sungard Availability Services.
A letter from over 50 academics has been delivered to the Korea Advanced Institute of Science and Technology (KAIST), a state founded university, expressing dismay over the development of AI between the institution and its partner Hanwha Systems.
Rothstein’s latest book aims to meet a critical business need with its structured approach to emergency evacuations. Writing about his own encounters with evacuations, author Jim Burtles expresses concern over the confusion that is so evident during an incident, and the widespread panic that can ensue when proper process is not put in place.
There is a lot of talk on the risk circuit at the moment about risk culture – specifically about the pressing need to change it. As Airmic’s Julia Graham points out in her guest column this issue, whilst corporate crises usually have several causes, a common thread in the vast majority is their root in a culture that encourages an unhealthy pattern of human behaviour and attitude towards risk. Airmic is not alone in this thinking. The UK’s financial watchdog has just published a discussion paper on culture in banking, designed to plant the seeds of change in the sector’s culture and to improve behaviour. Meanwhile, the Financial Reporting Council, the regulator responsible for promoting corporate governance and reporting in the UK, has instigated its own transformation with its decision to revise the Corporate Governance Code.
Working for the UK’s risk management association, one is likely to be asked to comment whenever there is a high-profile disaster. Whilst wanting to provide a helpful response, it is also important to avoid the trap of rushing into judgement before the facts of sometimes complex events become clear.
We all want to know what ‘good’ risk management looks like and we all want a fast track to get our public service organisation from where it is today to the best it can be. That’s what the Alarm/CIPFA Benchmarking Club is designed for.
More than 15,000 risks have been bound on the PPL platform so far and in certain classes significant amounts of business are regularly being placed electronically. In January, for example, the system was used to close the Aon Client Treaty facility for 2018, one of the largest and most complex transactions in the London Market.
This month we saw two key speeches on Brexit, from the Prime Minister and the Chancellor. The logic on financial services was pretty clear – that although the UK was going to leave the single market, it still expected the kind of bespoke deal on financial services that was offered to the US and Canada, which would have allowed for a great deal of mutual recognition. As Hammond summed it up: “If it could be done with Canada or the US... it could be done with the UK.”
The IRM has announced the appointment of Socrates Coudounaris as incoming chair of the board when the current chair, Nicola Crawford, steps down in May. Coudounaris is executive director of risk for the EMEA region at Reinsurance Group of America.
Pool Re has welcomed government’s commitment to amend the 1993 Reinsurance (Acts of Terrorism) Act to enable it to extend its cover to include non-damage business interruption losses resulting from acts of terrorism. The reinsurer is currently restricted by the 1993 Act only to pay out if physical damage has occurred to commercial property. This means that businesses, inside a police cordon, that suffer financial loss through being unable to access their property or to trade, are only covered if there has been physical damage during a terrorist attack.
The Chartered Insurance Institute (CII) is the latest signatory of the Time to Change pledge to end mental health stigma. Time to Change is a growing social movement run by charities Mind and Rethink Mental Illness, which supports people to open up to mental health problems. By signing, the CII is committing to change the way we all think and act about mental health in the workplace.
The Ministry of Justice confirmed today that long awaited legislation to help genuine injury claims be settled fairly will be brought before Parliament today. The Bill will also address the problems that arose by the way in which the Personal Injury Discount Rate (Ogden Tables) is set, to create “a fairer and better system while still providing full compensation”.
International SOS and Control Risks have reported a 30% growth in demand for security advice in the past two years, and an 800% increase since its launch ten years ago. It says that, on average, over 100 business travellers and international assignees a day have been supported with advice in the past year.
Airmic has published a practical guide to GDPR, which sets out to simplify the potentially complex regulatory challenge of the latest EU data protection rules. It is written primarily for risk managers who, it says, are ideally placed to co-ordinate the response because of their wider perspective and touchpoints across the organisation.
The British Insurance Brokers’ Association (BIBA) has become the latest organisation in the sector to sign the Woman in Finance Charter.
HM Treasury has today revealed the firms to have recently joined the Charter, which bring the total signatories to more than 200 employing over 650,000 people.
Channel Syndicate and Canopius will join Liberty Specialty Markets in forming a consortium to provide capacity for Toredo, an online platform for single situation trade credit insurance. The London Market Credit Consortium (LMCC), will provide up to US$75m of capacity per risk with a maximum two-year period.
An academic study into the macro economics of cyber crime and laundering estimate that US$80-US$200bn are ‘cashed out’ each year, and in total cyber criminal proceeds make up an estimated 8 to 10% of all illegal profits laundered globally. The findings, part of a larger nine-month study titled Into the Web of Profit and sponsored by Bromium, report the use of virtual currencies as the primary tool used by cyber criminals for money laundering. However, Bitcoin is now out of favour with the criminal elements who increasingly use to less recognised virtual currencies that provide greater anonymity.
Do you want the good news or the bad news about cyber resilience? Well you can have both, as IBM has completed its latest study into the perceptions and risks organisations take every day when it comes to cyber resiliency, and finds a surprisingly mixed picture...
Markel International has ceased to write London open market property business. It said in a statement that the development has no impact or implications for Markel Corporation’s US and Bermuda property businesses which, for reasons of size and structure, have not faced the same issues as the London open market business.
More than 90% of insurance leaders from across the globe are confident about their organisation’s revenue prospects over the next three years. This is despite the fact that insurance CEOs are more concerned about the pace of technological change than leaders in any other .
Marsh has joined open source blockchain initiative, the Enterprise Ethereum Alliance (EEA). With over 400 member companies, the EEA seeks to create open industry standards and frameworks for blockchain applications based on the core Ethereum platform.
Clyde & Co has announced the hire of Isabel Burón as partner in its Madrid office and Healthcare group. Buron is a healthcare lawyer with recognised experience in handling of complex medical malpractice claims and professional negligence matters. Her practice focuses predominantly on personal injury, with a significant emphasis on medical malpractice and professional indemnity. She represents insurers and healthcare professionals before the civil, criminal and administrative courts.
The latest Insurance Price Index from the British Insurance Brokers’ Association (BIBA) and Acturis that tracks £6bn of actual premiums paid annually via insurance brokers before Insurance Premium Tax (IPT) shows a dramatic increase in premiums for motor in the final quarter of 2017.
The UK’s financial watchdog has published a discussion paper on culture in the sector. Consisting of views from academics and thought leaders, the paper is intended to provide a basis for stimulating further debate on transforming culture in the sector – including what a good culture might look like, the role of regulation and regulators, how firms might go beyond incentives, and how to improve behaviour.
The winners of the 2018 Commercial Insurance Awards were announced last night at a gala dinner and ceremony held at the Millennium Hotel in London's Grosvenor Square. If you were not able to make it, read on to find out who took the trophies...
Lorega has launched a dedicated building surveying service – designed to help policyholders to manage property reinstatement in the event of a claim. The new service will provide the policyholder with access to Chartered Surveyors, with the necessary experience and expertise to help the policyholder through the process.
Schneider Electric has joined the Responsible Business Alliance (RBA), a coalition 120 companies from the electronic, retail, automobile and toy industries that promotes standards in human rights, safety and security, environmental protection and business ethics.
Storm Emma created some of the most testing weather conditions experienced in the UK for years, grinding many organisations to a halt and causing many to invoke business continuity plans to remain operational. It also exposed a number of shortfalls in plans, according to Databarracks. It says almost half of those organisations would have struggled due to their business continuity plan being outdated or recently untested. Its data suggests that just half of UK organisations are confident that their business continuity plan is up-to-date.
Global risk modelling and analytics firm, RMS, has released a new generation of its cyber risk management platform containing major new capabilities to help insurers better allocate risk capital.The new platform, RMS Cyber Solutions v3.0 (formerly the Cyber Accumulation Management System), is a first-of-a-kind probabilistic model for cyber loss, providing losses at different return periods for all five of the major cyber loss processes enabling insurers to design products and risk solutions that reflect the full nature of cyber risk.
Acronis has revealed plans to integrate its back-up solutions with Google Cloud. The new arrangement will significantly increase the number of cloud regions where Acronis’ partners and customers can store their data, and will bring fast upload speeds and data sovereignty options to users in a greater number of countries.
Global energy and power firms could experience more business interruption (BI) losses in the next decade as a result of asset consolidation and greater integration among multiple affiliates. This is according to a report from Marsh, which shows how supply chain integration and consolidation – such as sharing central utilities, support, and logistics facilities, and production clustering to rationalise less profitable or redundant operating assets – is becoming more prevalent in the global energy sector, as firms strive to save costs, reduce headcount, and boost their competitiveness.
Oil markets will be relatively insulated from geopolitical risks over the course of the year, barring a serious escalation on the Korean Peninsula or between Saudi Arabia and Iran, according to Verisk Maplecroft's latest Political Risk Outlook for the sector. At the same time, the report projects rising levels of government instability over the next three years in some oil and gas producing countries, including Russia, Kazakhstan, Egypt, Kenya and Uganda, that could impact upstream projects.
As Theresa May prepares to announce more detail on the Government’s Brexit negotiating stance in the final ‘Road to Brexit’ ministerial speech, the Chartered Insurance Institute (CII) is urging the government to publish the long-awaited position paper on financial services as the insurance and financial planning profession divides over its desired future regulatory relationship with the EU.
The Federation of European Risk Management Associations (FERMA) is calling on the European Union to foster much wider access to climate-related risk data. FERMA yesterday submitted a position paper in its response to the online public consultation on the evaluation of the EU's Strategy on Adaptation to Climate Change.
Pool Re has renewed its retrocession programme and extended the cover to include material damage and direct BI caused by acts of terrorism, using remote digital interference. The renewed cover, brokered by Guy Carp, has been increased by £100m to £2.1bn and has been placed with an expanded panel now comprising 47 reinsurers.
Colt Data Centre Services is in the process of greening its European datacentres. Nine of the company’s 17 European facilities now run exclusively on power generated from renewable sources. In France, the country’s reliance on nuclear power and an energy generation shortfall makes it impossible for any datacentre provider to guarantee 100% renewable power.
BIBA has called for urgent progress following the government’s response to Treasury Select Committee report on transitional arrangements for exiting the European Union. CEO of BIBA, Steve White, said that unlike most sectors of the economy, the sector needs certainty of transition right now as insurance renewals are being prepared which span the date the UK leaves the EU.
Weather warnings are expected for the rest of the working week, as the so-called Beast from the East continues to wreak havoc in parts of the UK. Hundreds of schools are shut, and road conditions remain dangerous up and down the country. Amber and yellow warnings have been issued by the Met Office, with London and the South East badly affected.
Never mind the Beast from the East. The real challenge for CISOs lies ahead in the form of a ‘perfect storm’ of staff shortages and escalating cyber crime, leaving organisations ill-equipped to manage and respond to cyber risks in an era of digital transformation, pervasive connections and increasingly sophisticated attacks.
The UK government has lifted a ban on carrying large electronic devices in the aircraft cabin of some flights to the UK. Large phones, laptops and tablets are now allowed in the cabin on the majority of flights to the country.
The Fintech Delivery Panel has announced the formation of a new group focused on insurance technology and innovation. London is a hotspot of European insurtech investment with 30% of all deals in the continent taking place in the city, according to Accenture. Part of the Insurtech Board’s remit is to make sure that London remains the leading location for insurtech in the future.
CA Technologies is to partner with the Cobotics robotics project, working alongside Tampere University of Technology and Tieto in Finland to explore the challenges of building safe, secure and effective human-to-robot workflows. Ensuring proper control and execution of so-called ‘cobot’ workflows and understanding their information requirements is central to maximising the potential of robot-human collaboration
KPMG is working with Aptitude Software to help insurers implement the transformational new accounting standards, IFRS 17. Global insurers need to become IFRS 17 compliant by January 2021. The requirements are broad and can impact virtually all aspects of an insurer’s business yet a KPMG survey recently found that over a third (36%) of insurers have yet to start any IFRS 17 project.
Political risk will remain a major concern for multinational businesses throughout 2018, driven by events including the North Korea missile crisis, ongoing Brexit negotiations, and trade protectionism, according to a paper published by Marsh. In Europe, the UK’s negotiations to exit the European Union continue to loom over the political risk landscape, while political instability persists in Spain and Italy’s general election in March raises concerns over the rise of anti-establishment and Eurosceptic parties.
The Financial Conduct Authority is seeking views on how technology can make it easier for firms to meet their regulatory reporting requirements and improve the quality of the information they provide. Every year the FCA receives over 500,000 scheduled regulatory reports from firms, as well as additional ad hoc reports.
Few organisations are highly confident in their ability to manage the risk of a cyber attack, despite viewing cyber security as a top risk management priority, according to a new global survey conducted by Marsh and Microsoft. In its global survey of more than 1,300 senior executives, two-thirds ranked cyber security among their organisations’ top five risk management priorities – approximately double the response to a similar question Marsh asked in 2016. The survey also found that a vast majority – 75% – identified business interruption as the cyber loss scenario with the greatest potential to impact their organisation. This compares to 55% who cited breach of customer information, which has historically been the focus for organisations.
The long awaited update to ISO 31000 has just been released. Chair of the iSO technical committee, Jason Brown, says the revised version of ISO 31000 focuses on the integration with the organisation and the role of leaders and their responsibility. “Risk practitioners are often at the margins of organisational management and this emphasis will help them demonstrate that risk management is an integral part of business,” he explains.
With 98 days to go until the deadline for the new GDPR rules, UK businesses are reporting a high degree of preparedness, having invested more than most of their European colleagues, according to research conducted by network protection firm, EfficientIP. Its study of 1,000 businesses suggests the UK only lags behind Germany in GDPR spending, with each organisation spending an average of £1,300,000.
Pool Re has today announced the launch of its Vulnerability Self-Assessment Tool (VSAT). Aimed at medium and large businesses, the new tool will enable Pool Re member insurers to offer a 5% premium discount to insureds which implement proven and effective risk mitigation measures.
Geospatial insurance analytics provider SpatialKey has partnered with Swiss Re to offer insurers access to multi-peril hazard data through its proprietary underwriting tool, in a collaboration that integrates Swiss Re’s CatNet hazard data into SpatialKey, providing insurers with access to 10 hazards worldwide for greater accuracy in risk selection, assessment, and management.
The Home Office has announced the development of new technology to detect terrorist content on online platforms. It says tests show the new tool can automatically detect 94% of Daesh propaganda with 99.995% accuracy. The Home Office will be sharing the methodology behind the new model with smaller companies to help combat the abuse of their platforms by terrorists and their supporters.
Liberty Specialty Markets has announced plans to launch a web-based platform for transacting specialised trade credit insurance for banks, corporates and commodity traders. The new LSM platform, Toredo, is designed to allow underwriters, brokers and clients to buy and sell insurance capacity with greater speed, visibility and efficiency. Beyond operating the platform, LSM will provide capacity to Toredo. Other capacity will come from an as yet unannounced consortium.
StarStone has announced the launch of a crisis management division, which will offer war and terrorism re/insurance and credit and political risks insurance.
The newly formed division is based around and strengthens StarStone’s existing war and terrorism division, led by Simon Low, who joined the company in July 2017 as group head of political risks and crisis management.
Former MD at AXA, Matthew Reed, is launching an InsurTech offering aimed at small to medium sized businesses. Equipsme, which launches on 1st March, is set to deliver a new range of health insurance plans to UK SME market. The new offering is backed by AXA PPP healthcare which will provide underwriting capacity in a five-year exclusive arrangement. Under the terms of the arrangement Equipsme will also have access to AXA PPP’s nationwide approved provider network of consultants, practitioners and hospitals as well as full claims and helpline support services.
The large-scale cyber attacks that took place last year reaffirmed the need to build cyber resilient organisations, according to the seventh edition of the BCI Horizon Scan 2018, released today by the Business Continuity Institute and the BSI. For the second year in a row, the threat of data breach ranked second.
BT has called on UK ISPs to follow its lead in sharing threat intelligence data across the community in a secure and trusted way, in an effort to protect businesses and consumers from cyber crime. BT is the first telecommunications provider to start sharing information about malicious software and websites on such a scale, and is in direct response to an initiative led by the UK’s National Cyber Security Centre (NCSC) to enable ISPs to share detection events.
While the risk of foot and mouth disease arriving in the UK remains low, the aim of the exercise is to test all current contingency plans for a national outbreak of the disease. It will establish the current state of readiness whilst identifying issues and improvements in policies, plans, instructions, structures and recovery procedures employed in managing an outbreak.
Unhealthy employees are costing UK firms six working weeks a year in lost productivity, at an estimated drain to the UK economy of £77.5bn a year. The latest Britain’s Healthiest Workplace study of 32,000 employees from over 160 organisations suggests that employees lose, on average, the equivalent of 30.4 days of productive time each year as they take time off sick and underperform in the office as a result of ill-health (also known as presenteeism).
The Economist Intelligence Unit has predicted that Australia will benefit most from AI and the UK will gain least in new study looking into the impact of AI until the year 2030. The study, commissioned and sponsored by Google, ran three econometric scenarios to 2030 on five countries—the US, the United Kingdom, Australia, Japan -- and developing Asia as a whole. However there are a few things to remember: the study only considers five regions – and assumes (in the case of the UK being hardest hit) no policy change – which is unlikely.
Lloyd’s has announced plans to push ahead with electronic placement. Over 15,000 risks have been bound to date on the electronic placing platform (PPL) and nearly 60% of the financial and professional lines risks are being placed electronically. Lloyd’s CEO, Inga Beale, said adoption is now vital and it is happening but, in the case of electronic placement, it is not happening fast enough. “Unless the market moves together it will not reap the benefits and reduce administration costs. Electronic placement will support face to face negotiation, further increase efficiency in the market, reduce back office costs and most importantly, improve customer service.
With just two months until the new Minimum Energy Efficiency Standards (MEES) deadline arrives, specialist engineering and construction insurer HSB Engineering Insurance is warning that unprepared commercial property owners could lose significant amounts of rental income as non-compliant properties become increasingly difficult to rent out.
As 2017 drew to a close, we took some time to reflect on some of the issues we faced, and the successes we enjoyed. There were many sizeable challenges placed on the public sector throughout the course of the year, many of which have greatly affected our members.
Pool Re has published its inaugural quarterly Terrorism Frequency Report, a detailed account of the severity and frequency of events, along with analysis of key trends, amongst them the rising threat from the ‘Virtual Caliphate’, online radicalisation, cyber attacks, and the implications for UK security and business
This year, global political risk continues to be one to watch, its effect on markets ongoing. Closer to home, the City of London and the wider stage is braced for Brexit, along with uncertainty and political unrest globally. Meanwhile, artificial intelligence and virtual reality are hot topics for the sector at the present and companies are investing heavily in research and software to help predict how these technological changes present both positive opportunities and risks to the business. Data breaches also feature in the top five risks for the sector along with how companies will manage the incoming General Data Protection Regulation.
The International Underwriting Association is calling for a national authority to help address ongoing cyber risk issues and to raise awareness of liabilities around the growing threat. Challenges for the insurance industry include underwriting talent, modelling techniques, reinsurance capacity and the acquisition of claims data.
Last year was a stark reminder of some fundamental truths for risk professionals. The devastating storms in the Americas were a brutal reality check of the impact of climate change; a spate of global cyber attacks brought home the fact that cyber risk is a reality today, not a problem for the future; and the tragic fire at Grenfell Tower showed that ‘traditional’ threats are still as dangerous as ever. These are not new lessons; they are wake up calls. They serve as a reminder that we as risk professionals must be prepared for all risks – whether they are dominating the headlines or not; just because artificial intelligence and data analytics are current hot topics does not mean we can forget about other areas of risk.
Simulation software developers at Simudyne have teamed up with the consulting arm of PwC to offer financial services companies the predictive power to plan for the future, through the combination of simulation software and consulting services. The collaboration will pair Simudyne’s simulation software with PwC’s strategy, technology and consulting expertise to provide clients with the ability to test scenarios, refine strategies and reduce risks in decision making.
A new study has identified a sharp increase in the number of employers reporting employee stress and mental health-related illnesses -- from 55% last year to 68% in 2018. According to Aon's Benefits and Trends Survey, the use of virtual GP services has also increased significantly, with 27% of employers using them -- up from 16% last year
The decision to delay the application of the Insurance Distribution Directive (IDD) is good news for brokers as research from Ecclesiastical Insurance reveals that two thirds (66%) have very little or no knowledge of the impending changes.
The Senior Managers and Certification Regime, first introduced for banks and building societies in 2016, will be extended to include insurance firms from 10 December 2018. Currently the Regime applies to banks, building societies, credit unions, investment firms and UK branches of foreign banks.
Good practice suggests that the best place to start is by having a policy that identifies what level of protection staff are granted. The norm is to adopt the highest standard of any country in which the organisation operates; for example, if your company is global and has locations in the UK and Cambodia, the company should adopt the UK’s approach to staff safety and security.
Moore Stephens Consulting (MSC), a division of the accountancy and advisory firm, has announced the acquisition of the data warehousing division of Atticus Associates, a specialist technology company that provides data monitoring services to London and global insurers.
Natural disasters cost US$353bn in 2017, with the insurance industry in position to handle a high volume of claims, according to Aon Benfield's latest report. It reveals that there were 330 natural catastrophe events in 2017 that generated economic losses of US$353bn – of which 97% (US$344 billion) was due to weather-related events, including Hurricanes Harvey, Irma and Maria in the US and Caribbean, plus Typhoon Hato in China and Cyclone Debbie in Australia.
Under the Bribery Act 2010, a maximum of ten years’ imprisonment and an unlimited fine may be imposed for offering, promising, giving, requesting, agreeing, receiving or accepting bribes. The Ministry of Justice’s quick start guide to the Bribery Act makes it clear that there is a full defence “if you can show you had adequate procedures in place to prevent bribery”. Legal obligations aside, an ethical approach to business is a contributory factor in effective reputation management. ISO 37001:2016 is the international standard for antibribery management systems.
DAS UK has become the world’s first legal expenses insurer to launch an innovative new Alexa skill for the Amazon Echo. DAS customers and the general public will be able to ask Alexa, Amazon’s virtual personal assistant, a variety of questions regarding legal expenses insurance and a range of common legal issues such as disputes with neighbours, employment tribunals and redundancy. The new DAS Alexa skill will provide a question and answer structure that will be regularly updated throughout the year with new additional content based on popular legal themes and emerging trends such as cyber insurance.
A study has calculated that businesses in US could lose US$15bn if a leading cloud service provider was to experience a downtime of at least three days. The report, put together by Lloyd's and AIR Worldwide, analyses losses for 12.4 million US organisations and proposes an alternative approach to help insurers model these risks, which are typically harder to assess than traditional perils.
Inoni has launched the latest product in their suite of business continuity planning tools for SMEs. Inoni Micro, built specifically for organisations up to 50 employees, offers a scaled-back and easy to complete online tool for managing plans.
The tech sectors of Britain and France will be brought closer together with plans for a digital conference, due to take place this year, aimed at promoting integration in the digital economy and to helping both countries seize the economic and social benefits of fast-developing tech such as AI.
Former Defence Secretary Sir Michael Fallon has called on the government to spend more on Britain's Armed Forces, and at the same time, chief of the general staff, General Sir Nicholas Carter, pointed to a return of cold war tensions with Russia and raised the prospect of hostilities between the country and NATO forces.
The government has announced the creation of a new national oversight body tasked with identifying consumer risks and managing responses to large-scale product recalls and repairs. The new office is also tasked with ensuring the UK carries out appropriate border checks on imported products once the it leaves the European Union.
Munich Re has partnered with InsurTech company Betterview to offer drone imagery, analysis and reporting to Munich Re’s insurance company clients. Betterview offers drone-based inspection services that capture high-resolution images of commercial and residential properties. Betterview also offers cloud-based software to organise, store and analyse the captured images to support an insurance company’s underwriting inspection, loss control and claims adjustment processes.
Earlier this month, infrastructure contractor Carillion went into liquidation, after extended rescue talks with lenders and the government failed. The UK’s second biggest infrastructure company hit trouble after losing money on a number of large contracts and running up significant debts. Within days of the collapse, the impact was already being felt. The firm employed 43,000 people worldwide, of which 20,000 were based in the UK. Some 30,000 small firms that were working on Carillion projects in the private sector suddenly face problems as a result of the bankruptcy. The company is said to owe these businesses approximately £1bn in unpaid costs; and there is growing alarm that much of this money will be lost, leaving many more firms at risk of financial collapse. Meanwhile, the company’s 19,500 staff in public sector jobs will continue to be paid – at a potential cost to the taxpayer of hundreds of millions of pounds.
The prospect of strong economic growth in 2018 presents leaders with an opportunity to address signs of severe weakness across societies, economies, international relations and the environment. This is among the headline messages of the World Economic Forum’s annual report on the global risk landscape, published today.
The EU has finally launched its strategy on plastic waste, with measures to curb plastic packaging and make all packaging recyclable or reusable by 2030. To some extent the green policy has been forced on the EU following China’s refusal to process foreign waste, and public opinion – especially following recent moves by the UK government that has lead the way.
Business group the Federation of Small Businesses has said it is it is vital that Carillion’s small business suppliers are paid what they are owed, or some of those firms could themselves be put in jeopardy, putting even more jobs at risk besides those of Carillion’s own employees.
Failure to comply with upcoming emissions caps could affect the validity of a shipowner’s insurance cover, according to warnings from Marsh. It says shipowners could find that their vessels are deemed unseaworthy and their insurance cover is affected by failing to comply with more stringent sulphur emissions (SOx) regulations set to be introduced in January 2020.
Innovate UK and the Department for Digital, Culture, Media and Sport, has up to £500,000 for ideas in cyber security coming out of academic institutions. The funding is part of the government’s cyber security academic startup programme. The competition has been developed to examine ideas to protect information systems, data and services from unauthorised access or accidental harm. There must be a clear intention to commercialise the idea, and that must have the support of the relevant academic institution.
The key risks for rail (and similarly for transport) will continue to be managing the disruptive impact of severe weather events. This includes not just continuity of service but also the effect on the integrity of the infrastructure. Risk mitigations such as improving flood defences and managing drainage remain priorities. Maintaining high safety standards and reducing train accident risk will continue to be high on the agenda.
Specialist MGA Fiducia has launched an engineering inspection service for clients and independent brokers in partnership with Bureau Veritas. The Fiducia engineering product provides comprehensive cover for loss of or damage to contract works including transit and maintenance, owned or hire plant and is available on an annual, short period or specific event basis. Capacity is provided by Lloyd’s Syndicates.
The role of today’s chief risk officer has shifted from technical expert to business advisor, and has propelled CROs into a world of complex stakeholder relationships, business navigation and regulatory expectations. According to a new study, this poses significant challenges for aspiring CROs in maximising the effectiveness of businesses risk functions.
Congratulations to all of this year's Commercial Insurance Awards finalists! Now in its fifth year, these Awards are unique in rewarding commercial insurance endeavours. View the shortlist.
Analysis by the Confederation of British Industry suggests a rise in the number of people who believe businesses in the UK have a good reputation. The research, comparing perceptions of businesses between May and November 2017, reveals 2 in 3 people think UK businesses have a good reputation, up 7% in 6 months.
Arc Legal Assistance has launched a dedicated Personal Cyber Support policy providing household insurance customers with access to support, restoration services and cover for cyber attacks. Designed to provide immediate assistance for individuals and families in the event of a cyber attack on personal electronic devices, cover can be either embedded in an underlying home insurance policy or provided as part of a legal expenses insurance (LEI) policy. Cover is underwritten by AmTrust Europe.
With parametric triggers having been used in the capital markets for 20 years or more, law firm Clyde & Co has completed a study into the legal and regulatory considerations that arise as they are increasingly used in insurance. The report draws on insights from Clyde & Co's global network of insurance lawyers, explores the growth of parametric insurance and considers the important role it has to play in building resilience to natural catastrophes.
Security flaws in the vast majority of devices have been exposed in the last few days, and as the producers scrabble to fix the issues, it is worth looking at exactly what the problems are. Researchers discovered gaps in security in the CPUs from most of the major manufacturers: Intel, ARM and AMD. The vulnerability leaves devices using these chips – including PCs, mobiles, servers etc open to attacks by hackers, potentially exposing data.
Image recognition software can be fooled by the addition of a simple ‘adversarial image patch’ next to any object, according to a recent report. Adversarial patches can be used universally to attack any scene, work under a wide variety of transformations, added to any scene, photographed, and even when the patches are small they cause the image classifiers to ignore the other items in the scene and report a chosen target class.
Security and recovery will rise further up the agenda in 2018. Malware and ransomware attacks will continue to dominate, with devastating consequences for affected businesses. With the widespread adoption of the Internet of Things, we will also see an increase in the number and complexity of endpoints, which could in turn lead to an increase in zero attacks.
Digital has so far been about pace and urgency. The race to embrace the fourth industrial revolution is still being run – but next year expect the early front-runners to ease up a little. Digital transformation is a marathon, not a sprint. And that’s good because it gives business continuity professionals the time to identify and mitigate the new risks that the digital revolution presents.
The regulator seems set to maintain the pace of consultations, with a key focus on ensuring great customer outcomes and ensuring personal accountability of leaders. We’ll need to filter through these voluminous documents and work through the details to identify the critical issues and provide compelling arguments and evidence to shape any future rule changes. Throughout 2017, we’ve read lots about InsurTech, with new entrants threatening to be disruptors. But given agile development and flexibility of digital platforms -- enabling integration with legacy platforms, 2018 could be the year that traditional players bring technological change to their core business.
As the May 2018 deadline for GDPR approaches, some organisations are working hard to ensure compliance. One element of these preparations that cannot be overlooked is that of visual data collected by surveillance cameras. There are millions of cameras in the UK, across all kinds of organisations – from hospitals and GP surgeries to schools and colleges, from shops and offices to transport hubs and open spaces. Wherever they are, those responsible for the visual data that cameras generate will be subject to the provisions of GDPR.
By December 2018, 25% of the people employed in the insurance industry in 2015 will have retired, a trend which is set to accelerate over the coming decade. It should be no surprise therefore, that there has been an influx of investment into risk management innovation as the industry seeks creative solutions to fill this gap.
British food safety standards have been making headlines yet again with several UK supermarket chains suspending contracts with 2 Sisters Food Group as the Food Standards Agency (FSA) launches an investigation into the alleged alterations of use-by dates on chickens. This latest scandal follows growing European concern about the state of food processing practices emanating from incidents including the Dutch egg insecticide contamination fiasco and recent FSA testing that showed how common food poisoning bug campylobacter was present within 50% of supermarket chicken products.
As we often comment in this column, the world of public sector risk is ever changing and truly dynamic. And as the Autumn Budget looms large, we may not need to wait until Christmas for surprises. Meantime, the focus for Alarm members should include preparations for soon to be enforced General Data Protection Regulations (GDPR). Many of you are involved in working groups and assurance boards supporting improvements to policies and process to ensure compliance with the new rules – not a quick and easy task.
An increasingly personalised and assertive style of national leadership will contribute to a profoundly uncertain business environment across the coming year. This is the view of risk analysts at Control Risks, and is among the findings of the consultancy's annual RiskMap, a political and security risk forecast for business leaders and policy makers around the world.
Over 80% of our largest business’ market value is now held in intangible assets such as brand, data capability and intellectual property – up from 20% a few decades ago. This is a striking statistic which has huge implications for the risk community. Understanding and managing these assets is a real challenge for organisations, and many are struggling to find insurance solutions to support their needs. However, while it is important that the insurance industry works hard to find effective ways to protect intangible assets, businesses must first ensure they have a thorough understanding of these assets and their vulnerabilities.
Being in such a high risk environment, oil and gas companies have been at the forefront of operational and process safety risk management for decades. Enterprise risk management (ERM) on the other hand has had less focus with some organisations doing it well, others dabbling, and some not having implemented it at all.
InsurTech, Regtech, Fintech – it is hard to move in insurance circles without hearing one of these terms being bandied about, often accompanied by the obligatory reference to disruption, innovation, on-demand and, of course, artificial intelligence and the march of the robots.
Speaking at the Royal United Services Institute Air Chief Marshal Sir Stuart Peach has raised concerns that Russia could target undersea communications and internet cables. Providing the majority of internet and communications links between countries, the subsea cables for a huge network of more than 400 cables over 683,508 miles.
A collision involving an unmanned ship as a result of a cyber attack would trigger difficult questions about liability, according to global marine industry executives.
Confusion surrounding the regulation of unmanned vessels and available insurance cover are together confounding concerns in this arena, according to a report published by global law firm Clyde & Co and the Institute of Marine Engineering, Science & Technology (IMarEST).
While recent commentary has focused on issues such as the recent increase in DDoS attacks due to IoT devices and the rampant and pernicious ubiquity of ransomware, a bigger potential storm has been brewing throughout 2017, of which the clearest warning sign has already been seen in WannaCry.
Sungard Availability Services has launched a mobile app designed to help businesses more efficiently manage and recover from an incident. Act with Assurance integrates with the provider's Assurance software platform to provide a more interactive, efficient way to manage business continuity.
Digital technologies will continue to transform the insurance industry and will do so at an increased pace in 2018. While insurers compete to leverage digital technologies to improve the customer experience, a wave of technological innovation will continue to disrupt the entire value chain. Drones, IoT devices and sensors are forging new and powerful connections between insurers and the risks they cover -- changing underwriting, claims, risk selection and pricing and even insurance products themselves.
The conditions are in place for a further rapid rise in social engineering attacks in 2018, with more and more organisations falling victim to these scams. During the first nine months of 2017, Beazley saw a nine-fold increase in the number of social engineering incidents reported by clients compared to the same period in 2016. Most affected were professional service firms, financial institutions and higher education establishments.
Criminal investigations and prosecutions of both entities and their directors are likely to increase in the UK and across Europe in 2018. Strict liability offences under the UK Criminal Finances Act 2017, which came into force at the end of September, now make companies and partnerships criminally liable if they fail to prevent tax evasion by an employee or associated person, and could herald a raft of new prosecutions next year.
Political risk has long been a concern for companies operating and trading in or with jurisdictions described as developing countries, including South America, Africa, Eastern Europe and some countries in Asia. The richness of these countries in terms of natural resources and other commercial interests continues to make them attractive investment options, however.
Around 200,000 residents have now been evacuated amid the latest California wildfires as crews battle to fight the latest blaze. More than 5,000 firefighters have been battling four brushfires that have damaged 150 buildings in the south of the state.
The development is a major blow to a region that was still counting the cost of October’s wildfires, which are believed to have been the costliest in the US state’s history.
A partnership between Pool Re and Cranfield University has seen the appointment of Professor Andrew Silke as the professor of terrorism risk management and resilience at the University. The role - a new position which will be co-funded by Pool Re and Cranfield University – is for an initial five-year period, starting on 31 January 2018.
Product-related risk is one of the biggest perils facing businesses today, with recall exposures having increased significantly over the past decade, bringing the potential for larger and more complex losses than ever before, warns insurer Allianz Global Corporate & Specialty (AGCS).
Hiscox has sharpened its focus on cyber by creating a virtual business unit (vBU) to draw together the expertise of its 70 cyber staff across the business. The firm currently sells cyber-specific products via brokers and carriers through its European, US, London Market and reinsurance operations, as well as direct-to-consumers through its UK retail business.
Research suggests only five per cent of IT decision makers have all the necessary data governance strategies in place to be compliant ahead of the introduction of the European Union General Data Protection Regulation (GDPR) deadline on 25 May 2018.
Growing antimicrobial resistance linked to the discharge of drugs and some chemicals into the environment is one of the most worrying health threats today, according to new research from the United Nations that highlights emerging challenges and solutions in the environment.
Supermarket chain Morrisons has been found liable for a data leak involving financial and personal data of almost 100,000 members of staff following a trial in the High Court.
Information including salaries, national insurance numbers, dates of birth and bank account numbers were among the details leaked by a former disgruntled employee – Andrew Skelton – in 2014. Skelton, who worked at the company’s headquarters in Bradford, West Yorkshire, was jailed in 2015 for his crime.
A growing number of small businesses say they are looking to interact with their insurers online according to a survey of small firms around the world, with UK companies among the most ‘digitally savvy’. The PwC survey of 2,100 small businesses suggests that the insurance market for SMEs is likely to completely transform to match the digital transformation seen personal insurance over the past decade.
The Lloyd’s market has now paid claims worth US$1.7bn in response to windstorms Harvey, Irma and Maria.
Earlier this year, Lloyd’s estimated a total commitment of US$4.8bn for the three storms. The market says brokers are receiving money from Lloyd’s managing agents within five days of agreement so they can pay policyholders promptly.
More than a third of IT professionals (35%) see themselves as the biggest internal security risk to networks within their organisation, according to research from IT security firm Balabit.
Whilst HR and finance departments are the easiest target for social engineering, it is in fact IT staff who pose the biggest insider risk to networks, whether caused by accidental or intentional actions.
This year saw a number of huge breaches of customer data, including names, contact details and financial information. Understandably, this has been met with anger from customers who trusted those organisations with their personal information. There is a recognition that personal data has value – not just to the organisation it is provided too, but also for the purposes of cybercrime. GDPR will of course help sharpen the focus of organisations in regards to the management of personal information, though 2018 is likely to see a more weary consumer who will be less likely to freely share their personal data or, perhaps, provide minimal or less accurate information in the first place.
At the risk of paraphrasing Mark Twain (‘reports of my death have been greatly exaggerated’), the BIA will become an integral part of a wider solution, not standing in glorious isolation. Already, the vast majority of our new clients are embracing the single entity approach to BC management using software, rather than having separate documents.
The combination of the shock UK election result, concerns over the progress of Brexit and a wave of terror attacks means business leaders will be looking to beef up growth in Europe and Asia in 2018. According to the results of our risk and confidence survey undertaken in autumn 2017, 63% identify Europe as the market with the strongest growth potential; looking ahead to Spring 2018, interest in Asia almost doubles from 8% to 13%.
2018 marks the first full year of implementation of a new law -- enacted by the Enterprise Act 2016 -- that allows policyholders to claim damages for late payment of insurance claims. It is now an implied term of insurance contracts that claims must be paid within a reasonable time. A breach of the term gives the policyholder a right to damages for loss suffered.
Legislative proposals, due to be finalised in spring 2018, look set to place new responsibilities on owners of drones weighing 250g or more These rules include mandatory registration of the individual and the requirement to take a safety awareness test. The proposed legislation could also see drones banned from flight near airports, or above 400ft, in an effort to reduce unsafe flying. Police may also be given authority to seize and ground drones which may have been used in criminal activity.
Sungard Availability Services has announced the availability of a fully-managed cloud recovery solution on Amazon Web Services, through which the provider can now offer SLA-backed recovery for customers on AWS or on premises, delivering the level of resiliency required for business-critical applications. Customers can expect to achieve sub one-hour RTOs and RPOs for their x86 workloads.
The business landscape is more unpredictable than ever. Wildly changing external factors including geopolitical risks, regulatory change, technological innovation and consumer sentiment and unrest are more forcefully shaping how businesses act. This is driving the acceleration towards more holistic risk and compliance management. The two functions can no longer be siloed, but instead pushed as a single operation that can be used by upper management to make informed decisions
Pool Re has this morning announced plans to extend its cover to include material damage and direct business interruption caused by acts of terrorism using a cyber trigger. The cover, effective from April 2018, which will exclude intangible assets, will be offered as standard to all policyholders purchasing terrorism insurance from Pool Re members.
In the September issue of this magazine, CEO of Airmic, John Ludlow, wrote an opinion piece on the first anniversary of the publication of the Insurance Act 2015 – a ground-breaking piece of legislation that was welcomed by all. Ludlow asked if the new Act had achieved its objectives thus far, his view that in some ways it had; but in others had not.
Organisations continue to face a growing number of natural and man-made disruptions, in an environment where an incident can quickly escalate into a crisis.
Tackling this issue, The Ultimate Business Continuity Success Guide demonstrates how cutting-edge preparation techniques and tools can “make your business unbreakable while increasing revenue and reducing your expenses”.
Today is Black Friday, and that means bargains. For retailers, it means big customer service and revenue pressure. To conquer the annual onslaught, and remain relevant and desirable throughout the shopping year, the onus is on retailers to deliver an intuitive, connected experience for consumers.
Keeping IPT at its current rate was a pleasing outcome in today’s Autumn Budget, and has been welcomed by the industry. Director general of the Association of British Insurers, Huw Evans, said: “Not raising IPT further was the right decision by Philip Hammond and reflects the much higher profile the insurance industry has successfully given to this stealth tax. But the pressures on the public purse are not going away so we need to keep up the pressure to protect customers from further increases in future budgets.
After a year of high-profile cyber incidents such as WannaCry and NotPetya, attention around these issues is not likely to abate when we look toward the year ahead. On the contrary, one of the trends we are likely to see in the next year is more and more companies and industries waking up to the realisation that cyber exposure and risk is not at all limited to ‘traditional’ data breaches. Given the ubiquitous role of technology, these issues can affect areas such as logistics, manufacturing and industrial controls, with real impact on the physical operations of the business. If the software running a key logistical system, such as an e-commerce website or a store till, is compromised then it can bring an entire business to a halt. The risk of such a halt in production is real, and the effects potentially significant.
BIBA, its members and their customers believe that Insurance Premium Tax should be reduced and have made the case to the Chancellor in a recent budget submission, in which the group explained that the 10% increase in uninsured accidents identified by the Motor Insurance Bureau (MIB) in August 2017, can in the opinion of most industry experts, be attributed to this summers’ IPT rate hike, moving from 6% to 12% in a 20 month period. It also drew attention to the impact of the tax on those living or operating in high flood risk areas, where premiums are already necessarily higher if the risks are outside the scope of Flood Re.
There is a well used expression that risk management simply equates to good business management. Certainly the success of an organisation depends on effective management skills in its senior team and the way they address culture, and in particular risk culture, drives good governance and the achievement of objectives.
With just ten days until the Chancellor’s autumn Budget, what should the insurance industry should be looking out for? Stephen Brown, partner at Mazars, says that without a huge increase in debt, anything given away on Wednesday will need to be paid for from somewhere else.
FERMA has welcomed the publication of a report from the European Union Agency for Network and Information Security (ENISA) on the commonality of risk assessment language in cyber insurance, but says that for a full picture the perspective of the insured must also be considered.
A guide to good practice for delegated authority arrangements in the London company market has been published by the International Underwriting Association. The document urges firms to keep customer impacts uppermost in mind when outsourcing particular functions. It highlights the need for detailed risk assessments when selecting new coverholders and stresses the importance for comprehensive ongoing oversight of any partners.
Half of UK consumers don’t believe commercial organisations care about their privacy, and many are prepared to take legal action against businesses that don’t comply with the EU General Data Protection Regulation (GDPR). At the same time, businesses are concerned the new data privacy regulations will have a negative impact on their operations and international relations.
A number of major insurance companies have pulled $20 billion from investments in coal and a growing number are refusing to underwrite new coal projects, with Zurich announcing it will divest from and cease offering insurance to companies which depend on coal for more than 50% of their business.
Following a year of heightened security risk, International SOS has published a new Ipsos MORI survey of global business leaders that charts and maps heightened travel concerns. It says two in three business leaders believe travelling has become more dangerous in the last year; and found that travel plans were changed predominantly due to concerns over security threats, followed by natural disasters.
JLT has launched a new product that addresses the specific cyber risks faced by asset managers. Enterprise Cyber will safeguard management fee income in the event of a notified cyber incident triggering unplanned redemptions along with traditional cyber policy cover. In addition, Enterprise Cyber will cover a broad range of incident response costs including system restoration, privacy breach, digital media issues arising from third parties and cyber extortion.
Low take up of readily available technologies and management practices is fuelling the deep-seated productivity problems the UK has faced in recent decades, leading to what the Confederation of British Industry is calling a "striking productivity differences between businesses leads to variations in wages, opportunities and living standards for people across the UK".
The deadline for entries for the Commercial Insurance Awards has been extended to the 24th November 2017. Now in their fifth year, the Commercial Insurance Awards are the showcase for excellence within commercial insurance. The awards are unique in rewarding the particular issues around the insurance of commercial enterprises, and were created to allow the commercial insurance sector to shine.
The expected extent of compensation claims and regulatory sanctions under GDPR have been outlined in a document published by law firm DAC Beachcroft. The report sets out findings from an 18-month study with contributions from data protection experts across all 28 EU member states.
The winners of the 2017 Risk Management Awards were announced by our host Lucy Porter at a Gala Dinner last night at the Millennium Hotel, London Mayfair. Congratulations to all the winners and we look forward to another spectacular event in 2018!
Government must act urgently to change the law to help local economies protect themselves in the face of today’s rapidly evolving terror threat, according to a new report out today from the Federation of Small Businesses (FSB). The report is calling on the government to release the UK terror cover safety net, Pool Re, from outdated law which prevents businesses from insuring themselves against ‘non-damage business disruption’ in the wake of a terror attack. Current rules do not cover loss of trade, or other impacts of modern terrorism.
Organisations are at risk of breaching the GDPR because they’re failing to realise that the new regulations cover their CCTV systems and the visual data they collect. These are the words of Andrew Charlesworth, reader in IT Law at the University of Bristol, and come just over six months before the GDPR becomes law.
The Business Continuity Institute has published its highly anticipated Good Practice Guidelines 2018 edition. Its arrival coincides with the first day of the annual BCI World Conference and Exhibition, which kicks off in West London this morning.
Organisations with business continuity arrangements are eight times more likely to report greater supply chain visibility, twice more likely to insure for supply chain losses, and three times more likely to display top management commitment. This is according to a report published today by the Business Continuity Institute and Zurich Insurance Group.
With just 200 days to go until the introduction of the General Data Protection Regulation (GDPR) on 25th May 2018, new research from management consultancy Baringa Partners suggests that the banking sector is in a strong position when it comes to data governance. Baringa’s survey reveals that banks top the rankings when it comes to who consumers trust with their personal data. More than three quarters (77%) of people say they trust their bank, compared to 62% for insurers, 59% for energy companies and 58% for TV, phone or internet providers.
Lloyd’s insurers spend about £20m a year on capital model governance and validation, but approach the process as an exercise to satisfy regulators rather than a value-adding proposition, which could be a missed opportunity, according to the Lloyd’s Market Association (LMA).
Eight people have been killed and 11 injured in what is being treated as a terrorist attack in New York. At 15:00 local time, a van was driven down a cycle path in the City's Lower Manhattan area. The driver was subsequently shot and injured by police as he fled the scene. US President Donald Trump tweeted that he had subsequently ordered Homeland Security to "step up" its "already Extreme Vetting Program".
The BBC said officials were calling it the deadliest terrorist attack in the city since September 11.
Sungard Availability Services has signed an agreement to work with Enfield Council on its expanding digital strategy. With a strong reputation for technological innovation, the council is focused on increasing engagement with all constituents via digital platforms.
The 20th Anniversary Business Continuity Awards, celebrating achievements in business continuity, security and resilience, are open for entries. These annual Awards are the most anticipated event in the business continuity calendar and provide unrivalled networking, alongside a night of entertainment and celebration.
Boards are receiving more risk management data today than ever before, yet there is still significant room for improvement when it comes to strategic decision-making, according to a RIMS study.
Specialist insurer Hiscox and cyber security company Symantec have partnered to offer a software and insurance solution to protect and support small businesses as the threat of cyber crime continues to evolve. The Complete Cyber offering has been designed to provide a combination of insurance, software and 24/7 technical support designed to address the specific needs of small businesses and the multi-faceted threats they face conducting business in the digital world.
An independent review of the UK energy sector has called for radical changes in energy pricing to aid the move to renewables. The review, commissioned by the government, and carried out by professor Dieter Helm of Oxford University, considered the entire electricity supply chain, from generation and transmission to supply, and concludes that customers are currently paying more than they should.
AIR Worldwide estimates that industry insured losses from the California wildfires will be between US$2bn and US$3bn. AIR’s loss estimates explicitly capture residential, mobile home, commercial, and automobile losses, as well as direct BI losses.
The 2017 Climate A List compiled by CDP records companies that are making significant efforts to cut emissions, mitigate climate risks and develop the low-carbon economy. There are 127 companies on the list including BT Group, J Sainsbury, Land Securities, Lloyds Banking Group, Lockheed Martin Corporation, Microsoft, National Grid, Philip Morris, Sky, Toyota, UBS and Unilever.
Data breaches resulting from social engineering scams were up nine-fold in 2017, according a report compiled by Beazley. It says that while hacking and malware prevail as the major causes of data breach, scams involving deception have spiked over the course of the year. Fraudsters use social engineering attacks to prey on employees’ roles in their companies in order to orchestrate the disclosure of sensitive information or the wire transfer of money to criminal recipients. These exploits generally take one of two forms. The first, so-called W-2 scams, typically occur during the months leading to tax filing deadlines when criminals use targeted emails to persuade a specific company employee to forward copies of all the company’s employees’ W-2 forms. This often results in the criminals filing false tax returns, based on the improperly forwarded W-2 information, to claim refunds. The second category, fraudulent instruction, occurs when a fraudster impersonates a trusted party, such as a company executive or a payment system vendor, to cause a fraudulent payment, often a wire transfer, to be made into the fraudster’s account.
Technology provider SAS has launched a new solution to aid organisations with the forthcoming EU General Data Protection Regulation (GDPR), helping firms locate and isolate all personally customer identifiably data so that it can be properly protected ahead of the regulation's May 2018 deadline.
Today sees the launch of a campaign aimed at promoting London as the world’s insurance hub. With three days of events in and around the infamous Leadenhall Market, the London Market Group's campaign aims to present the UK capital's unrivalled credentials as the market for insuring risks and, should disaster strike, getting clients back on their feet as swiftly as possible.
Marsh has announced the launch of a new insurance solution for mid-sized firms in the UK. The firm says the new offering, simply dubbed ‘Resilience’, has been designed to provide a “simpler, stronger and more comprehensive protection from [clients’] critical risks”.
Law firm CMS warned today that US insurers paying claims for multiple natural catastrophes could face disputes over the sheer number of claims being made on their reinsurance programmes. It says that after what is likely to be the costliest year for natural and man-made catastrophes, with wildfires still raging in California and several weeks of the North Atlantic hurricane season still to go, many direct US insurers will suffer from the cumulative effects of multiple major loss events.
Organisations spend four times more on physical risks than they do on information assets, according to a new report carried out by the Ponemon Institute and Aon. According to the 'EMEA Cyber Risk Transfer Comparison Report', this is in spite of a growing recognition of the value of technology and data assets relative to historical tangible assets; some 38% of EMEA businesses have suffered a cyber related loss in the last 24 months, averaging US$3.3m per loss. Yet, only 15 percent of their probable maximum loss (PML) is covered by insurance.
Risk and IT professionals may agree on one thing: cyber risk is problem that needs addressing; but when it comes to how organisations should assess, manage and mitigate the threat, views are not quite so well aligned. This is not a new problem, but it is a worryingly persistent one.
Oak Underwriting has extended its high-net-worth (HNW) offering to include home cyber cover for the first time. The HNW home product will automatically include home cyber assistance within its legal expenses and home emergency cover from 1st December 2017. Oak says it plans to support customers by investigating and rectifying damage to the computer; locating and removing a computer virus; and hiring a professional consultant to advise customers on prevention measures against future cyber attacks. It will also offer a £100,000 limit as an optional cover upgrade, which will cover payments liable as a result of hacking, ransomware or misuse of personal data.
Insured losses associated with wind and coastal flooding from Hurricane Nate will not exceed US$500m, according to estimates from RMS. This season, insured losses from US hurricanes are expected to total between US$75 and US$120bn. The damage resulting from Nate is not expected to constitute a material portion these insured losses.
Technological, economic, demographic, societal and geopolitical macro trends are driving deep changes in the business environment – changes that are creating new opportunities and risks. Meantime, as the corporate sector evolves from being dominated by physical assets to deriving more value from intangible assets, such as intellectual property, networks, platforms, data and customer relationships.
Media and technology firms are facing new risks associated with people, assets and regulation amid the emergence of the sharing, on-demand or digital economy – or the fourth industrial revolution. In a new paper, ‘Economy 4.0: Risk Evolution and Revolution in the Age of Disruption’, Marsh examines some of the issues facing CMT firms as they embrace the opportunities being created by the new industrial revolution – or ‘Economy 4.0’.
Brokerslink and Safeonline have launched a new cyber risk management and insurance facility, with MS Amlin, Cyber adAPT and Cyber Scout. Exclusive to Brokerslink, the facility is delivered via a modular wording allowing flexibility depending on client and budget.
Beazley has underwritten its first policies from its new Dublin-based insurance company, which was authorised in July. The company, Beazley Insurance, is rated A by AM Best. The insurer has been developing a suite of financial lines products to expand its presence in selected European markets, including recently launching in the UK products for financial institutions that incorporate Beazley Breach Response cyber solutions. It has also launched a suite of management liability products in the UK and will be launching a full range of financial lines products for the Spanish market later this month.
The deadline for entries for the 5th annual Commercial Insurance Awards is fast approaching. The Commercial Insurance Awards, hosted by CIR Magazine, are the showcase for excellence within business insurance. This year’s judging panel includes Sue Brierly, Group Risk & Insurance Manager, Hanson UK; Iain Hovell, Director of Insurance, IHG; Paul Johnson, Director, Financial Institutions Group, Barclays Bank; Chris McTear, Insurance Manager, Thames Tideway Tunnel; Xavier Mutzig, Group Insurance Manager, Johnson Matthey and Neil Timberlake, Group Insurance Director, Land Securities.
Endeavour Insurance has launched a new technology and cyber facility to be headed up by Tony Loizides. The Endeavour Cyber Facility will predominantly be managed via an online portal
Allianz Global Corporate & Specialty has teamed up with Silicon Valley-based cyber risk analytics and modelling firm Cyence to boost its global cyber risk analysis capabilities. Recent cyber attacks have illustrated how vulnerable even well-prepared businesses can be to such threats. Cyence estimates that May’s Wannacry ransomware caused economic losses reaching US$8bn, inclusive of extortion payments, business interruption lost profits, and extra expenses required to keep businesses moving and restore systems
The City of London Corporation has donated GBP75,000 to the British Red Cross for appeals in Burma, South Asia and for those affected by Hurricane Irma and is urging City firms to join it in donating.
The US National Hurricane Center reported that September 2017 was the most active month ever recorded for tropical cyclones in the Atlantic Ocean when measuring the combined strength and duration of storms in the basin. Hurricane Irma crossed through the northern Caribbean as a Category 5 hurricane, before making landfall in the United States to become the first Category 4 landfall in Florida since 2004’s Hurricane Charley. At least 124 people were killed or missing and hundreds more were injured, following periods of exceptionally gusty winds, high surf, storm surge, torrential rains and inland flooding. Major damage was noted in the United States, Cuba, Barbuda, the Virgin Islands, and the northern Leeward Islands.
Willis Towers Watson has launched a new hub to focus on facultative reinsurance business across the German-speaking ‘DACH’ region of Germany, Austria, and Switzerland.
Gerhard Hurek will lead the hub as the Head of DACH Facultative Reinsurance. Previously, Hurek led the facultative business at MAPFRE RE for Germany, Austria, and the Central and Eastern European (CEE) region – a position he held for over a decade.
Ventiv Technology has purchased Effisoft's risk management information system, Webrisk. As part of the acquisition, COO of Webrisk Paris, Edouard Lefebvre and London director, David Thomas, will both be joining Ventiv, as well as all current Webrisk personnel. Following the acquisition, Ventiv will continue to support and invest in the Webrisk platform as well as its existing risk management technology solutions.
The latest business confidence survey conducted on behalf of DAS UK Group has found that 80% of UK insurance brokers expect London to retain its place as a leading global insurance market, despite the country’s decision to leave the European Union. The ‘DAS Market Barometer’ of 250 brokers also found that a similar number were bullish about business prospects over the next two to three years, with 79% expecting their company to grow. Almost half (49%) of those surveyed were even more optimistic, expecting revenues to grown by more than 10% over the next two to three years.
The criminal law provisions relating to online copyright infringement have changed. The maximum sentence that can be levied is now ten years. This change brings the law in line with what is already available for physical copyright infringement.
Insured losses from Hurricane Maria will be between US$15bn and US$30bn, according to the latest estimate from RMS, the vast majority of which will be driven by wind damage, and also includes storm surge and inland flood damage across the Caribbean, with Puerto Rico and Dominica suffering the most widespread destruction.
InfluenceMap has released a report that ranks global corporations by their climate influence. Currently companies are generally judged by their direct carbon footprint, but the report highlights how constructive and obstructive lobbying by companies can have a significant impact on climate policy.
The soft market, Brexit and regulatory compliance are the top three issues faced by London Market companies, according to a survey of International Underwriting Association members. IUA members also cited the IT/cyber revolution, the challenge of innovating new products and the recent change in the UK discount rate as major business challenges.
Beazley has partnered with Generali to offer, to create a new cyber insurance offering for its corporate and commercial clients operating in the Brazilian market. As part of the arrangement, Beazley will coordinate the breach response for policyholders, including IT experts, legal services, identity monitoring, notification and call centre services, and public relations.
Pen Underwriting has entered into a long-term capacity deal with Zurich in the area of hazardous and tanker transportation. The agreement will see Zurich provide capacity for up to £150m in premiums over the next five years for Pen’s hazardous goods and environmental motor fleet solution (formerly OAMPS) which is tailored to the specific needs of different segments of the high hazard transportation and distribution sector including fuels, chemicals and liquid waste as well as non-hazardous tanker operators.
Ecclesiastical is launching enhanced cyber and reputational risk covers for the charity and faith sectors. The updated Charity and Community and Faith and Community products feature increased limits on standard cover, including property on an all risks basis.
Brokers will be able to create a policy bespoke to their clients’ needs, with options including protection against cyber risks, business interruption cover including donations and grants, and a crisis helpline to support organisations in the event of an incident.
RMS predicts that economic shake losses resulting from the 19th September Puebla earthquake will be between US$4bn and US$8bn. This is based on current building damage information from the Mexican authorities. RMS has also analysed data on ground motion, and examined how property exposures are distributed across the region.
Islamist extremists remain the principal source of terrorism risk to the UK, with Daesh and al Qaeda associates the key threat actors, and likely targets crowded places, national infrastructure and police and military institutions and personnel. This is according to the latest analysis from Pool Re, whose Terrorism Threat and Mitigation Report, released today, outlines the key themes and emerging trends in the broad spectrum of terrorist threats faced by the UK and Europe.
A government audit shows that the South of England is the hub of the UK’s digital economy. The eight counties, including Dorset, Kent and Berkshire, represent a total economic output of £225.3bn, accounting for 13.7% of the country's economic output. The audit report, released today by the Department for Business, Energy, and Industrial Strategy (BEIS), presents evidence to illustrate that the area is at the forefront of advances in digital innovations across a wide range of industrial sectors, developing new technologies including augmented reality devices, robotics and automated vehicle innovations.
Uber’s application for a new licence in London has been rejected by Transport for London. TfL said that the renewal was not forthcoming because it had concerns over the taxi firm's lack of effective corporate responsibility. This is linked issues of the reporting serious criminal offences and driver background checks. Furthermore the software that Uber uses can be used to prevent regulatory bodies from seeing information.
The President of Mexico has declared a state of emergency following Mexico’s second quake in two weeks. In the capital Mexico City yesterday, dozens of buildings were toppled; about two million people have no electricity; telephone lines are down; gas mains may have ruptured; and at least 200 people have been killed in Mexico City and the states of Puebla, Mexico, and Morelos.
Hurricane Maria took direct aim at Puerto Rico on Wednesday thrashing some islands already left in ruins by Hurricane Irma, and razing areas that had previously escaped damage. According to AIR Worldwide, this is Puerto Rico’s first direct landfall from a Category 4 storm in 85 years since the notorious 1932 San Ciprian storm. Maria’s winds are causing widespread and severe damage, reportedly ripping roofs and nonstructural elements from buildings and launching debris left from Irma’s destructive rampage the week before. Maria brought a storm surge of 6 – 9 feet to Puerto Rico, and is inundating the country with between 12-18 inches of rain, with isolated amounts of up to 25 inches.
Practitioners often find themselves at a loss when it comes to dealing with conduct risk. Nonetheless, history has shown that it is an important topic to get to grips with. And with that, here is an engaging guide to understanding how regulators think and getting ahead of the elusive issue of conduct risk.
As an ex-police officer, I am acutely aware of the importance of definitions in the pursuit of clarity. In law, definitions and their subsequent points to prove enable law enforcement officers to ensure that people do not get prosecuted unless their activities have met a certain criterion. Inconsistent terminology can lead to confusion, and the same is the case in organisational resilience.
The public sector continues to go through organisational change programmes in order to meet significant saving targets due to loss of external funding and budget reductions whilst delivering services more efficient and effectively – all this against a backdrop of ever-changing risk dynamics.
Police were called to a London Underground station at 08:20 today following reports of an explosion on a train. The incident, which resulted in a number of injuries, has since been declared an act of terrorism and is being investigated by the Met Police’s Counter Terrorism Command unit.
Back in February, the Ministry of Justice unveiled a dramatic cut to the discount rate used to calculate lump-sum personal injury compensation from 2.5% to minus 0.75%, following a review of the Ogden tables. The unexpected change took effect from March and was the source of widespread concern across the industry, and began a narrative that included the British Insurance Brokers’ Association calling for urgent changes in the law used to set the rate.
Hurricane Irma, one of the most powerful Atlantic tropical cyclones on record, has devastated a string of Caribbean islands and is currently impacting the Dominican Republic and Haiti, and is forecast to turn northward on Saturday towards Florida. Cat modellers at AIR have said that by every measure, the cat 5 hurricane is a huge and powerful storm system; its 300-mile diameter is twice as wide as Florida and is roughly equivalent to the area of the state.
Equifax has announced that a data breach could potentially have affected 143 million consumers in the US. Hackers exploited a vulnerability in a US website application to gain unauthorised access to files from between May and July. The company said the exposed data include names, birth dates, Social Security numbers, addresses and some driver's licence numbers.
A new eight stage action programme has been launched by the Building Research Establishment to support the responsible and ethical sourcing of materials, products and people. The Action Programme on Responsible and Ethical Sourcing programme, or APRES, was created in partnership with Loughborough University and presents eight pathways to best practice to combat modern slavery and unethical practices in supply chains.
DAC Beachcroft partner and head of strategic litigation, Andrew Parker, has led a major new initiative for the Civil Justice Council (CJC) to resolve noise-induced hearing loss claims more cost-effectively. NIHL claim numbers rose dramatically between 2010 and 2015, reaching over 87,000 in early 2015.
Fiducia MGA has today launched a suite of engineering products following the appointment of an engineering underwriting team.The team consists of Tony Sturmey who was previously engineering underwriter with Fusion and prior to this senior head office underwriter at HSB Engineering and CGU; senior engineering underwriter Chris Rooke formerly with NMU and Aviva; and Peter Milner, regional underwriting manager at W/R/B Underwriting.
The economy of the city of Houston, Texas could lose up to US$60 billion of GDP in the next year as result of flooding following Hurricane Harvey. The loss of economic output could potentially exceed the physical damage costs and insurance loss estimates, according to analysis from the Centre for Risk Studies at the Cambridge Judge Business School.
Last month saw the first anniversary of the Insurance Act 2015, a ground-breaking piece of legislation that was welcomed by all. But with the draconian Marine Insurance Act 1906 consigned to history, has the new Act achieved its objectives? The answer depends which objective you are talking about.
The Foresight Williams Technology EIS Fund has invested £500,000 into Southampton-based intelligent gas grid solutions provider, Utonomy. Established in 2015, Utonomy has developed an innovative technology for reducing leakage in gas distribution networks. Its IoT solution automatically optimises gas distribution pressures through electro-mechanical actuators retrofitted to the network and controlled by intelligent, cloud-based software.
Losses anticipated from Hurricane Harvey are unlikely to exceed the top reinsurance limits of insurers writing business in Texas, according to figures from AM Best. The recent soft reinsurance market, it says, has allowed primary insurers to obtain favourable terms from reinsurers, including higher limits on catastrophe programmes and extended hours clauses.
BackupAssist has announced the launch of its CryptoSafeGuard ransomware protection for SMEs. CryptoSafeGuard protects backups from ransomware by stopping infected files from being backed up and prevents backups from being encrypted. It is designed to complement existing anti-malware solutions by adding an extra layer of detection at the data level, while also providing extra shielding around backups.
For the first time listed companies will have to publish pay ratios between chief executives and their average UK worker under reforms to boardroom accountability outlined by the government today. Business Secretary Greg Clark set out how the government’s package of corporate governance reforms intend to enhance the transparency of big business to shareholders, employees and the public.
Cat modelling firm AIR Worldwide estimates that industry insured losses resulting from Hurricane Harvey’s winds and storm surge in Texas could reach US$2.3bn, without taking account of the impact of the ongoing torrential rain and catastrophic flooding from Hurricane Harvey’s unprecedented precipitation.
The government announced today that partially driverless lorries will be tried out on major British roads by the end of next year. Some £8.1m in government funding is behind the drive to bring accelerating, braking and steering in sync through wireless technology a step closer.
Beazley has launched a new excess policy for the US market that expands the protection available to firms that fall victim to impersonation scams. Social engineering attacks have proliferated in recent years, costing some companies millions of dollars. Insurance coverage to address the risk has largely failed to keep pace with the larger attacks, typically providing between US$100,000 and US$250,000 of protection.
The first hurricane to strike Texas since 2008, Hurricane Harvey is expected to make landfall as a Category 3 storm Friday evening or Saturday morning bringing the threat of strong hurricane winds, life-threatening storm surge, and days of heavy rain. According to catastrophe modelling firm AIR Worldwide, Harvey could cause dangerous inland flooding to Texas, Louisiana and possibly Mexico.
Munich Re Syndicate has launched a new cyber product specifically for the independent oil and gas sector. This new cover encompasses both traditional data breaches and any physical loss or expense associated with a potential cyber attack. The operational and financial complexity of this particular sector presents growing threats to cyber risk due to increased connectivity, sensitivity of data, unmanned operations and complex royalty payment structures for onshore operators. The likely recurrence of cyber attacks is expected to intensify as the link between technology and business continues to evolve.
The shortlist for the 2017 Risk Management Awards has been published. The winners will be announced at a black tie gala dinner and ceremony on 9 November at The Millennium Hotel in London's Mayfair. Now in their 8th year, the Risk Management Awards recognise those individuals, organisations and teams that have significantly added to the understanding and practice of risk management. Judged by an independent panel of experts for exceptional performance, the awards provide an opportunity for organisations and individuals to showcase their best products, projects and people.
Thirteen people have been killed and dozens injured in a terrorist attack in Barcelona in which a van ran over pedestrians on the city's busy Rambla boulevard Thursday. People were told to avoid central Barcelona following the attack which occurred at around 1700 local time. Three people have so far been arrested in connection with the incident, with the perpetrator of the attack still at large.
Preliminary estimates for the first half of 2017 suggest that catastrophes caused global total economic losses of some US$44bn – significantly less than the US$117bn in losses for the same period last year. Of the total losses in the first half 2017, US$23bn were covered by insurance. A series of severe thunderstorms in the US caused some of the largest losses in the first half of 2017. Globally, around 4,400 people lost their lives or went missing in disaster events, compared with 4,800 in the first six months of 2016.
Global insurance renewal rates fell for the 17th consecutive quarter in the second quarter of 2017, according to figures from Marsh. Rate decreases moderated globally in the second quarter of 2017 across property and financial and professional lines. Meanwhile, global property rates declined on average by 2.8% in the second quarter compared to a decrease of 3.6% in the first quarter, while financial and professional lines declined by 2.1%, compared to 2.6% in the previous quarter.
Several people have been injured after a van crashed in Barcelona's city centre, according to local police. The area around Plaza Catalunya has been closed by emergency services.
Expiration of the US National Flood Insurance Program (NFIP) would leave many businesses with significant lapses in flood coverage, difficulty in procuring affordable coverage and uncertain of current and future flood regulation within their jurisdictions. This is the warning from US risk management society, RIMS, which is calling on its members to support its push for the reauthorisation of the government backstop due to expire on 30th September 2017.
Despite ongoing uncertainty regarding Britain’s negotiations to leave the EU, regulatory pressures are continuing to drive demand for specialists in risk and compliance, with a third of UK companies polled by specialist recruiter Robert Walters stating that they are planning to grow their risk and compliance teams plan grow in the second half of the year.
The number of retail businesses reporting data breaches to the Information Commissioner's Office has doubled in just one year, jumping from 19 in 2015/16 to 38 in 2016/17, according to law firm RPC. It says that the risks involved in data breaches are increasing in the retail industry, as retailers accumulate more and more personal information on their customers as part of their big data initiatives.
Asia recorded a US$10bn economic loss following severe and continuing flooding in July. According to Aon Benfield’s latest cat report, relentless seasonal flooding that began in mid-June resulted in continued fatalities and damage across parts of Asia throughout the month. The greatest impacts were recorded in China, where nearly 200 people were left dead or missing and hundreds of thousands of homes were damaged or destroyed.
Modern slavery risks have risen in nearly three quarters of the 28 member states of the European Union over the last year. Compared with other countries around the world, the EU fares badly in terms of the strength of laws, enforcement effectiveness, and the severity of violations over the course of the year, with the slavery situation in Romania deemed as deteriorating worse than any country globally. Along with Italy, it has some of the worst reported violations in the bloc, including severe forms of forced labour, such as servitude and trafficking.
Premium Credit has launched a set of digital services, including a new mobile app and an enhanced customer portal. The mobile app, available on iOS and Android, allows Premium Credit’s retail broker customers to manage their Credit Agreement. The enhanced customer portal allows both retail and commercial broker customers to manage their Credit Agreement.
The World Health Organisation has launched a new e-learning platform with video courses on epidemics, pandemics and health emergencies. OpenWHO transforms complex scientific knowledge into easy to understand introductory video lessons, using a smaller bandwidth so that people in any country can access them.
New research suggests confidence in disaster recovery plans among UK companies has fallen for a second consecutive year, due to factors including lack of testing, budgetary constraints and the growing cyber threat. These are the findings Databarracks' seventh Data Health Check report, released today. The survey questioned over 400 IT decision makers in the UK about their IT, security and continuity practices over the last year, and what they expect to change in the next 12 months.
The 2018 Commercial Insurance Awards are now open for entries! Now in their fifth year, the Commercial Insurance Awards are the showcase for excellence within commercial insurance. The awards are unique in rewarding the particular issues around the insurance of commercial enterprises, and were created to celebrate the very best in commercial insurance.
Views are being sought from industry, regulators and other interested parties on the UK government’s plans to transpose the Security of Network and Information Systems Directive into UK legislation. The NIS Directive is designed to help make sure UK operators in electricity, transport, water, energy, transport, health and digital infrastructure are prepared to deal with the increasing numbers of cyber threats. It will also cover other threats affecting IT, such as power failures, hardware failures and environmental hazards.
Schneider Electric and Claroty have announced a joint venture aimed at addressing safety and cybersecurity challenges for industrial infrastructure. As part of the arrangement, Claroty will market its real-time OT/ICS network monitoring and detection solution to Schneider Electric’s customers through the company’s collaborative automation partner programme (CAPP).
The difference between ‘assisted’ and ‘autonomous’ driving could prove to be a challenging battleground for the insurance industry in the development of self-driving vehicles. So says law firm Clyde & Co, explaining that there is a legal grey area between a car fully under its own control and a car which was nominally driving under its own control but still required driver supervision – even though the driver is not playing an active role.
According to an independent survey of SME insurance customers, commissioned by Lorega, there remains a clear gap between the experiences and expectations of SMEs in the UK when it comes to making a commercial insurance claim, with almost 70% of SMEs saying interim and final claims amounts not agreed promptly.
Bob Mackenzie, the former executive chairman of the Automobile Association has been dismissed for ‘gross misconduct’, leaving shares in the company 14 per cent lower at one point. There is no clear picture of the circumstances for the parting of ways, other than references to workload and stress; Mackenzie held the dual roles of chief executive and chairman at the company and it has been suggested that the workload affected the good governance of the organisation.
BP expected to offer battery re-charging across its global network of service stations as the company positions itself as a provider of cleaner energy. Following moves to ban the sale of new petrol and diesel vehicles in the UK and France – a move likely to be copied elsewhere – and a surge of interest in creating electric cars from manufacturers (Tesla, BMW Mini and Volvo have all recently made announcements), BP is preparing for a ‘post-petrol’ world. By 2030 the demand for fossil fuel for road transport is predicted to have reached a plateau.
Dame Inga Beale, ACII, Chartered Insurer has been elected the 121st president of the Chartered Insurance Institute (CII). Dame Beale is the first female chief executive officer at Lloyd’s and has held a number of senior positions at Canopius, Zurich, Converium and GE Insurance. She succeeds John Moore MBE, Chartered Insurance Broker and Chairman at Thomas Carroll Group. CII members also voted Jonathan Clark, ACII, Chartered Insurance Practitioner as CII deputy president.
UK prosecutions for cybercrime fell last year as under-resourced police struggle to get to grips with the growing threat, according to law firm RPC. It says that there were only 57 prosecutions under the Computer Misuse Act last year, down from 61 in 2015 -- representing the first time prosecutions under the Act have fallen this decade. This fall comes despite the UK experiencing 1.9 million computer misuse crimes in 2016.
Electric cars can now be said to be on the brink of widespread acceptance, with both the UK and France seeking to remove new petrol or diesel vehicles in the medium term, Volvo announcing an all-electric (or part electric) range, BMW committed to building an electric Mini and Tesla announcing that its newly released Model 3 has nearly half a million pre-orders.
Health and safety has moved up the risk agenda following the introduction of new sentencing guidelines. The value of fines collected for breaches of the Health and Safety at Work Act has doubled in a year, according to a research report from global law firm Clyde & Co.
At Airmic’s annual conference in Birmingham, there was a real sense that risk management is at a crossroads – that it is a profession in transformation. The risks businesses face are changing in fundamental ways and at an unprecedented pace, as they grapple with cyber threats, business model disruption and reputational crises in a social media era. Indeed, an in depth survey of Airmic members reveals that almost all of the top ten risk concerns are now non-traditional or intangible in nature.
Have you mastered the art of beekeeping, guitar and quilting? Then why not try blockchain. Despite the wide variety of general interest topics for which the Dummies series may be best known, the vast collection of ‘how to’ guides boast numerous titles providing in depth analysis on a variety of business topics – including a few for risk professionals. As some readers will know, along with the Cabinet Office and the Business Continuity Institute, CIR was consulted in the preparation for the series’ Business Continuity guide. Now, the beloved brand has turned its attention to blockchain.
Cat risk modelling firm AIR Worldwide has released a comprehensive severe thunderstorm model for Australia that explicitly captures all three sub-perils - hail, tornado, and straight-line wind to help companies assess and manage severe thunderstorm risk.
UK SMEs are under prepared to respond to a crisis scenario, despite their awareness that security threats are rising and 44% expecting to face some form of attack in the near future. This is the key finding of research commissioned by Arthur J. Gallagher, focused on evaluating business resilience, which identifies a perception gap between the level of preparedness of UK SMEs and the growth in security threats.
The Supreme Court ruled today that employment tribunal fees formerly introduced by the government were unlawful. The impact of today’s judgement could see the volume of claims increase, according to employment law firm DAS Law. Partner at the firm and head of employment and commercial, Allison Whiston, said the ruling came as a complete surprise to many. “The fees attracted a great deal of negative attention when they were introduced, with many claiming the fees restricted access to justice for many thousands of people,” she explained.
Allianz is working with InsurTech company Flock on digital insurance solutions for the growing UAS market. The partnership’s first product, which is scheduled to be launched in the UK later this year, is a mobile app for Android and iOS that enables operators to purchase ‘pay-as-you-fly’ drone insurance.
What is the difference between risk management and good management? In my humble opinion, these are broadly similar – in order to be a good manager you need to ensure you have complete oversight of a situation or process, together with a robust understanding of where things might go wrong and how these pitfalls can be avoided. Risk management is an integral part of project management, from planning to application, and from options appraisal to ultimate decision making. Failure to take risk seriously can lead to disastrous consequences. It is very rare in life that a situation is risk free; things can, and invariably do, go wrong from time to time and more often than not, issues are clearer with the benefit of hindsight.
The BCI launched its annual Cyber Resilience Report earlier this month, once again highlighting the global increase in cyber vulnerabilities. The top three risks were found to be phishing, malware and social engineering, with new entrant ransomware only just making the top five. But will new legislation like the GDPR, state of the art anti-hacking software or staff security awareness training stop all future attacks? Not on their own.
In these uncertain political and economic times, risk management is, as Nik Gowing said at the Airmic show last month, “about thinking the unpalatable not the unthinkable”. With that in mind, the work of the CII Claims Faculty New Generation Group supporting the Riot Compensation Act could not be more prescient. If the UK was to face major civil unrest, would claimants fair better than in the 2011 riots in England which resulted in huge claims being made against the police under 100-year-old legislation? To say the claims handling was chaotic would be an understatement.
We live in a very noisy communications age; and one in which public and private debates can be heated and blurred (social media, take a bow). Now, more than ever, there are many business benefits to getting internal communications right. Internal communications, employee engagement and cultural integration are as important in peace time as they are in a crisis.
CFC Underwriting has added the option of patent infringement cover to its proposition for UK-based technology companies. Success in the tech sector often depends on the ability to create unique products and build on older ideas to develop new solutions. This means there is the risk of inadvertently trespassing on to others’ intellectual property (IP) which can result in costly legal proceedings.
Nearly half of UK consumers plan to activate new rights over their personal data, according to a poll of 2,000 UK adults commissioned by SAS. The poll explores the nation’s sentiment towards upcoming legislative change that empowers consumers with new rights over how their personal data is handled by organisations. Fifteen per cent of adults polled even expressed their intention to activate their new rights in the same month that the General Data Protection Regulation (GDPR) comes into force on 25 May 2018.
A major global cyber attack has the potential to trigger US$53 billion of economic losses, roughly the equivalent to a catastrophic natural disaster like 2012’s Superstorm Sandy, according to a scenario described in new research by Lloyd’s and cyber risk analytics modelling firm Cyence.
The deadline for entering the 8th annual Risk Management Awards has been extended until 4 August 2017. The awards recognise those individuals, organisations and teams that have significantly added to the understanding and practice of risk management.
Schroders has launched a ‘climate progress dashboard’ to give investors insight into the progress being made towards meeting the 2C temperature rise target. The dashboard, developed by the Schroders’ Sustainability team, identifies the long-term temperature rise the world is on course for, according to a framework of indicators spanning politics, business, technological progress and energy. According to the dashboard, the indicators are currently predicting a temperature rise of 4C.
The Federation of European Risk Management Associations’s European Certification programme is now live, with the first online examinations scheduled to start in September. "This is a major step forward in giving access to FERMA Certification to risk professionals throughout Europe," said FERMA President Jo Willaert. "Application, registration, all educational materials and examinations are now open to any qualified risk professional through the internet."
More than a fifth of UK companies whose employees drive for work purposes have no road safety policy in place, new research has revealed. The study, carried out by TomTom Telematics, polled senior managers at 400 UK businesses found a further four per cent did not know whether their organisation had a defined policy. It found that 60% of respondents said staff members had been involved in road traffic accidents while on business duty, with 78% claiming this resulted in lost productivity due to injury or time off work.
BLM partner and occupational disease specialist Michelle Penn has been appointed chief assessor for a new Occupational Injury accreditation being implemented by the Law Society of England and Wales. Penn, who has specialised in occupational disease claims for over 20 years, put forward a formal proposal to the Law Society to introduce a stand-alone accreditation for disease specialists.
When it comes to data compliance matters, one in five business decision makers within the UK admit they do not know which compliance regulations their company is subject to, while a worrying number do not believe the forthcoming General Data Protection Regulation (GDPR) applies to them. The findings are part of the 2017 Risk:Value report commissioned by NTT Security.
The European Insurance and Occupational Pensions Authority (EIOPA) has today published an opinion on supervisory convergence in the light of the UK's withdrawal from the EU. Mathew Rutter, insurance advisory partner at international law firm DAC Beachcroft, who leads the firm's Brexit Advisory Team, said the opinion is a warning to supervisors against lowering the thresholds to entry in order to attract insurers to their jurisdiction. "It is also a warning to UK insurers looking to set up EU operations that they can't just have a 'letterbox' operation, with all of the decision makers back in London.
Aon Benfield’s catastrophe model development team's latest Global Catastrophe Recap report reveals that worldwide economic and insured losses during the month were once again largely driven by several major severe weather outbreaks in the United States. Large hail, tornado touchdowns, straight-line winds and isolated flash flooding all contributed to an aggregated economic loss that was expected to exceed US$3bn.
Ten fire engines and around 70 firefighters were called to a fire in Camden Lock Market, North London at just before midnight on Sunday evening, 9 July. According to the London Fire Brigade, the first, second and third floors, plus the roof, of a building within the market were damaged by the blaze. LFB Station Manager Andy Walton said: "The hard work and aggressive actions of the crews ensured the fire was contained to the area of the building which was alight when the Brigade arrived. The main road has re opened and the unaffected parts of the building have been handed over to the building managers."
Travelers has launched a new online system that enables UK brokers to receive Management Liability quotes and bind coverage in minutes. Accessed through the My Travelers e-trade platform, the Management Liability Package uses four steps to streamline the quoting process and help brokers bind D&O, employment practices liability, pension trustees liability and commercial crime coverage.
The LMA’s Claims Committee has agreed to fund a satellite imagery and intelligence service for Lloyd’s managing agents, designed to improve claims processes and exposure management both pre and post natural catastrophe.
Managing agent representatives from LMA Sector Groups, the LMA and Lloyd’s have worked with McKenzie Intelligence Service (MIS) to develop an imagery and intelligence service that supports the market before and after an event and across multiple classes of business.
A meeting of the global Microinsurance Network in Luxembourg has called on the global insurance industry to deepen its engagement in inclusive insurance in support of the UN Sustainable Development Goals (SDGs).
Speciality MGA Fiducia and Lloyd’s insurer, Atrium Underwriting have developed the terrorism and sabotage policy which takes account of the changing risks associated with the latest types of terror threats.
Chubb has launched a new solution for technology companies. The first and third party policy is designed specifically for the unique insurance needs of technology developers, producers and distributors in the UK and Ireland operating in the middle market either domestically or on a multinational basis.
EC3 Consultants has today launched a General Data Protection Regulations (GDPR) review and audit service to support insurance companies, brokers and MGAs in addressing the new data requirements. GDPR will apply to all organisations that control or process relevant personal data. Insurance companies, brokers and MGAs hold large amounts of this kind of data so will be widely affected.
Disaster recovery and business continuity services company, Databarracks has announced the appointment of Mike Osborne, former managing director of business continuity at Daisy Group, as new chairman. In this role, Osborne will work with the senior management, with a remit focused on driving business growth as well as helping to expand and broaden the firm’s existing recovery and business continuity service offerings.
As Brexit secretary David Davis completes the first substantive rounds of talks in Brussels, the business community is turning its attention to Brexit contingency plans, to ensure they can respond as best they can, whatever the outcome of discussions at the Commission’s headquarters. And that’s as it should be; that’s sound enterprise risk management. But there is more that businesses can do at this important time for the UK, and as some take care of their own plans and response, others are looking outward, and asking what they can do to support the government in its goals.
There is a pressing need to improve cyber security in Industrial Control System (ICS) environments to avoid future breaches that could impact critical national infrastructure. This is the view of CREST, the not-for-profit accreditation body representing the technical information security industry.
More than half (51%) of UK workers claim their workplaces are affected by a culture of negative judgement around sickness absence, research has revealed. The study of 1,123 workers, carried out by Willis Towers Watson, also found 54% of workers believe they are put under pressure to return to work before they have fully recovered from illness or injury. This could contribute to greater levels of presenteeism – turning up for work when unwell - which affects productivity, morale and recovery from illness.
The impact of climate change is most evident for inland and coastal floods -- both of which will overall see more frequent and more intense floods -- according to analysis from cat risk modelling firm AIR Worldwide. Its latest analysis, released today, examines climate change and its effects on atmospheric perils of relevance to catastrophe modelling and the insurance industry. Projections reveal that the earth is likely to see an increase in the frequency and intensity of most of the other weather phenomena reviewed (severe thunderstorms, wildfires, inland floods, coastal floods).
Companies across the world are reporting another wave of ransomware attacks, thought to be created by an updated version of the WannaCry virus of last month. This is the tactic of choice for cyber criminals at the moment.
How many risk managers and commercial insurance buyers outside of the major corporate really value their brokers? How many see them as business advisers rather than just a mechanism for getting a decent deal on their insurance once
a year? A new report from the CII Insurance Broking Faculty looks at this question from the perspective of small and medium sized businesses as part of a wide ranging analysis of the present and future state of the UK’s SME commercial insurance broking market. It looks forward ten years to how the market, and those working within it, will need to adapt and change to be both relevant and successful in 2027.
Businesses are pressing ahead with digital transformation plans, despite fears of being hit by a cyber attack or data protection regulations according to a new report. The independent research commissioned by IT and software provider Advanced questioned over 500 senior executives in UK organisations about their attitudes to using the cloud as part of their digital plans. Most organisations surveyed are concerned about security (82%) and data protection (68%) in the cloud but 80% of them are not put off from adopting the cloud following recent high-profile cyber attacks such as WannaCry.
Almost one fifth of the population of the Middle East – approximately 30 million people – are now living in areas at risk of earthquakes, according to a new Oasis earthquake risk model released by CATRisk Solutions and sponsored by Lloyd’s.
The United Nations Office for Disaster Risk Reduction (UNISDR) has claimed that climate change is greatly increasing the likelihood of devastating wildfires, such as the one that caused such devastation across Portugal last weekend but is now reported to be under control.
GDPR comes into force in a little less than a year, with marketers’ awareness of the new rules remaining high, but confidence in current levels of preparedness has reduced as the deadline looms. According to figures released back in February 2017 by the DMA, (Direct Marketing Association), 68% of marketers said their business was on course or ahead of plan to be ready for the GDPR. But in May, this dropped to 55%, with a further 24% of companies yet to start a GDPR plan.
Many organisations do not devote enough attention to mission-critical applications when creating disaster recovery plans, and a new report has concluded that one of the biggest reasons is the ‘resiliency perception gap’ - the gap between executives’ perceptions of the effectiveness of their resiliency strategies and how successful these plans actually are at protecting against application outages or downtime.
The nature and effects of the recent terrorist attacks in London and Manchester are broadening the industry’s understanding of terrorism insurance, and could result in a permanent shift away from policies based on damage to property.
There is still time to submit your winning entries for this year’s Risk Management Awards. Now in their 8th year, the Risk Management Awards recognise those individuals, organisations and teams that have significantly added to the understanding and practice of risk management. Judged by an independent panel of experts for exceptional performance, the awards provide an opportunity for organisations and individuals to showcase their best products, projects and people.
AIG has piloted what it says is the first multinational insurance policy using blockchain. The pilot solution was built for Standard Chartered Bank by IBM and is based on Hyperledger Fabric – a blockchain framework and one of the Hyperledger projects hosted by The Linux Foundation. AIG, Standard Chartered and IBM converted a multinational, controlled master policy written in the UK, and three local policies in the US, Singapore and Kenya, into a ‘smart contract’ that provides a shared view of policy data and documentation in real-time
My last contribution to this column highlighted the challenges to the public sector in times of continuing financial cuts. Since then we have seen the Spring Budget which provided extra grant funding for social care with £2bn pledged for the next three years, of which £1bn will be available in 2017/2018; £320m for schools; and further devolved powers to local authorities. This was welcome news, of course, but there are still hurdles for our member risk managers to jump, namely the triggering of Article 50 and the economic uncertainty it brings, the increase in Insurance Premium Tax and the change to the Discount Rate – all of which will present challenges for risk managers.
Theresa May has said there is to be a full public inquiry into the Grenfell Tower fire that claimed the lives of 17 people in West London this week. The fire in the 24-storey block began in the early hours of Wednesday morning. It took forty fire engines and over 200 firefighters just over 24 hours to tackle the blaze. The Fire Sector Federation says there are early indications of problems with the fire and smoke alarm volumes, that only one stairwell was available, that Fire Safety messages told people to stay in their homes, and the ‘rain cladding’ to the exterior of the building was a major contributing factor.
Companies operating in France are being urged to take note of the increased environmental responsibilities resulting from a new biodiversity law which came into force in August 2016. AXA Corporate Solutions has launched an awareness campaign informing large corporates about their new responsibilities in terms of the environment and their rising risk exposure.
The risk management profession is undergoing unprecedented transformation in terms of its strategic influence and scope, as well as the nature of risks it is facing. This is according to research conducted by Airmic. Its study shows the profile of risk management within most organisations as higher than ever, with its importance now widely recognised at board level -- a trend that is set to continue, according to the majority of risk and insurance managers polled
Reduced market access, regulatory fragmentation, the return of inflation, cloud risk accumulation, but also emerging liability legislation for artificial intelligence, are some of the key risks identified in this year's SONAR report, published by Swiss Re today.
The Business Continuity Awards winners were revealed last night at a Gala Dinner and Ceremony held in London's Mayfair. This year's Lifetime Achievement award was presented to Mike Osborne; the Business Continuity Manager of the Year, Sean Deadman of Barclays; and Best Contribution to Sungard Availability Services. More...
A salary benchmarking study conducted by the Business Continuity Institute points to a considerable gender pay gap within the business continuity industry. The institute's study of over 1,000 business continuity and resilience professionals sought to discover the remuneration packages that those in the industry receive, including salary, bonus and other benefits. The report provides deep dives into regional specifics for Australasia, Europe, the US and the UK.
New guidance has been launched intended to give protective security advice to those responsible for managing the security of crowded places. The new guidance is primarily aimed at those with a responsibility for security at crowded places and those who own or run businesses, organisations, amenities or utilities.
Seven people have been killed and 48 injured following a terrorist attack at London Bridge on Saturday night. ISIL has claimed responsibility for the attack in which a vehicle mowed down pedestrians on London Bridge before the attackers stabbed patrons of bars nearby.
Airmic's outgoing chief executive, John Hurrell, considers the ways in which the profession has changed over the course of his nine years at the helm of the UK's association for insurance and risk managers, and offers his view on what might be in store moving forward
Even five years ago the term ‘organisational resilience’ was heard relatively infrequently; now it inevitably crops up in any conversation amongst business continuity, security, risk management and other professionals tasked with ensuring that the physical and operational integrity of an organisation is maintained no matter what challenges it may face.
Getting an ERM system up and running is complex and time-consuming. The question of where to start is, therefore, a valid one. How might common implementation issues and cultural barriers be overcome? How can ERM be leveraged in all three lines of defence? These are among the topics tackled in this impressive new title.
Global insurance rate decreases moderated for the fifth consecutive quarter, according to Marsh’s own measure of global commercial renewal rates.
It says global insurance rate decreases moderated on average for the fifth consecutive quarter, down 2.3% (compared to the previous quarter’s decrease of 3.1%).
Millions of businesses and individuals in the UK will be hit with increased insurance bills as the government’s increase in Insurance Premium Tax (IPT) takes effect. This rapid and unprecedented increase now means the rate of tax paid on most insurance policies has doubled in a period of just 19 months (from 6% in 2015 to 12%). Between 1997 and 2015, a period of 18 years, there were only two rate rises, taking the rate from 4% to 6%.
The world has experienced a political earthquake since the financial crisis of 2008. Increasing distrust in political and business institutions coupled with economic distress produced by the Great Recession has given rise to new populist movements elevating hopes of change, and at the same time fears of instability. The system of representation offered by political parties seems incapable in this environment of addressing emerging popular demands
Allied World Europe has launched a commercial division in the UK. The main products covered by the UK Commercial Division are commercial combined, property owners, contractors all risks and combined liability.
The threat level to the UK from international terrorism has today been lowered to severe. The threat level had been raised to critical on Tuesday in the aftermath of the terrorist attack in Manchester.
Businesses trading with customers in Eastern Europe are being warned to expect a potential increase in payment defaults, according to a report from trade credit insurer Atradius. Its Payment Practices Barometer analyses payment behaviours of businesses with the latest report focusing on Eastern Europe, including the Czech Republic, Hungary, Poland, Slovakia and Turkey. The report reveals that 86% of Eastern European customers have paid their B2B invoices late over the last year. For 58%, the reason was attributable to customers’ liquidity issues – compared to 52% of Western European businesses. The report highlights Hungary as experiencing the highest number of liquidity related late payments at 78%.
McDonald’s and L’Oréal are shifting to deforestation-free commodity supply chains alongside six other companies who make up a newly-expanded supply chain platform of CDP, the environmental data body. Working with CDP the companies are collating information from their suppliers on any links and risk management relating to deforestation, and with deforestation responsible for 10-15 per cent of greenhouse gas emissions the issue is becoming more pressing to both policymakers and consumers.
New statistics show businesses across the UK are being targeted by cyber criminals every day and the scale and size of the threat is growing. The government’s latest study of cyber preparedness among UK companies suggests that nearly seven in ten large businesses identified a breach or attack in the past year, and puts the average cost to large businesses of all breaches over the period at £20,000 and in some cases millions. The Cyber Security Breaches Survey 2017 also shows businesses holding electronic personal data on customers were much more likely to suffer cyber breaches than those that do not (51% compared with 37%) – figures that may serve to crystallise thoughts and preparatory work for new EU General Data Protection Regulation.
EU GDPR is a “game-changing” piece of data protection legislation that comes into effect one year from today. While the legislation includes various components related to how organisations collect, store, manage and protect customer data, the ‘right to be forgotten’ gives individuals the right to have personal data erased. But if most organisations cannot locate where their customer data is stored (both on-premise and offsite), it will be difficult to fulfil ‘right to be forgotten’ requests.
IBM Resilient has launched a new offering aimed at helping companies address the new General Data Protection Regulation (GDPR). GDPR may require significant changes to the way organisations respond to consumer data breaches. For example, any organisation that does business in Europe will have 72 hours to notify the supervising authority and data subject of a breach, or risk being fined €20 million or up to 4% of their global annual turnover. A recent Ponemon Institute study found that 75% of organisations admit they lack a formal cyber security incident response plan applied consistently across the organisation, meaning that GDPR response could prove to be challenging.
Twenty-two people have been killed and scores injured following an explosion at a pop concert in Manchester last night. The incident is being treated as a terrorist attack. Suspending election campaigning, Theresa May is set to hold a COBR committee meeting this morning.
The Joint Terrorism Analysis Centre has advised that the UK threat level be increased from severe to critical. This is the highest level of security preparedness in the UK. The change comes after 22 people were killed in a terrorist attack at Manchester Arena Monday night. Fifty-nine people were also injured, and some are still missing.
EOS Risk has joined red24 and S-RM on CFC’s panel of security companies specialising in global kidnap and extortion incidents. K&R team leader at CFC, Mark Baker, says: “Highly skilled, swift response is of the utmost importance if something does go wrong in this area of insurance. Our cover provides a 24/7 emergency hotline in the event of an incident with no limit to consultant fees incurred. I’m delighted that we have been able to add EOS Risk to our existing panel, providing our insureds with an exceptional choice of experts able to help them when they need it the most.”
The UK discount rate must better reflect investment strategies, be subject to regular review and set by a politically accountable minister, according to recommendations set out by the International Underwriting Association. Responding to a Ministry of Justice consultation on how courts determine lump sum compensation payments for personal injury claims, the association stated that reform of the current methodology is essential. It pledged support for the ‘100% compensation principle’ which states that claimants should neither be overcompensated nor undercompensated.
With Emmanuel Macron now installed as president, France has for now defused the run of electoral bombshells that have buffeted geopolitical stability over the last year. However, the global outlook remains rocky according a new report from global risk consultancy Verisk Maplecroft, which identifies the Trump administration’s unpredictability in the foreign policy arena as a major geopolitical wildcard.
The recent ransomware attacks in over 150 countries reveals the widening scope of cyber risk exposures and is likely to increase demand for cyber insurance protection. This is according to Fitch Ratings, which prescribes a cautious approach to adding cyber exposures due to a considerable uncertainty in pricing and underwriting this risk. Aggressive expansion by individual underwriters into the segment, it warns, could be credit negative.
BIBA believes that urgent changes are needed in the way the damages discount rate is set. In its response to the Ministry of Justice’s Damages Discount Rate consultation, the British Insurance Brokers’ Association (BIBA) outlined some current deficiencies in the law to set the rate and called for urgent changes and for experts to be involved.
Lloyd’s has welcomed the Arctic Council Ministerial Declaration establishing the Arctic Shipping Best Practices Information Forum, which will hold its first meeting in London on June 5-6. The Declaration was made at a Ministerial Summit this week in Alaska, attended by the foreign ministers of the eight Arctic states, including US Secretary of State, Rex Tillerson.
Issues relating to the office environment are behind a growing number of invocations, according to analysis from Sungard Availability Services. Some eight in ten of their customers’ invocations in 2016 largely stemmed from an increasingly vulnerable physical workplace environment. The analysis suggests that companies may be in danger of neglecting their physical surroundings, as they focus efforts on ensuring a more robust and secure virtual infrastructure.
According to NHS Digital, a number of hospitals and trusts in England have been affected by a large-scale ransomware attack. Trusts and hospitals in London, Blackburn, Nottingham, Cumbria and Hertfordshire have been affected. IT and telephone systems have been shut down. Some hospitals are reported to be diverting emergency patients, and there are reports of ransom demands. The NHS has not said that any patient data has been accessed.
The Insurance Act 2015 came into force almost a year ago and the Enterprise Act 2015 took effect on 4 May 2017 impacting both the placement of commercial insurance and the way claims are considered. To help bring about clarity around some of the more challenging adaptation issues, BIBA, in conjunction with insurance governance specialist, Mactavish has launched its Insurance Act 2015 & Enterprise Act 2016 Adaptation Guide
Payment delays and insolvencies are predicted to rise in the consumer durables retail sector this year, reveals a new economic report from trade credit insurer Atradius. While payment delays and insolvencies have remained relatively stable over the last six months, the Atradius Consumer Durables Market Monitor reports a weaker picture for the six months ahead. Growing economic uncertainty, expected to impact consumer spending, and higher import costs are the primary factors behind the deteriorating outlook and Atradius is warning manufacturers, suppliers and retailers to take extra measures to protect themselves.
Allianz Global Corporate & Specialty SE (AGCS) has announced a partnership with US-based analytics company, Praedicat to better predict catastrophe liability risks. Praedicat’s modelling engine uses machine learning technology to scan large volumes of data from peer-reviewed science publications and profile the likelihood that products or substances will generate litigation risks over their lifecycle.
According to FM Global's latest annual index, oil-rich Saudi Arabia has emerged as a country with above-average inherent cyber risk. Its high internet penetration, combined with a limited cyber security industry, make it a more vulnerable target. Developing India, by contrast, with its growing information technology industry, emerges as a country with below-average inherent cyber risk.
The CPNI, the UK government authority for providing security advice to the UK national infrastructure, has published the Passport to Good Security, a best practice guide for senior executives to help create an effective risk management strategy, which Pool Re considers a valuable tool for risk management and insurance professionals working to improve the resilience of businesses against domestic and international terror threats.
British Insurance Brokers' Association chief Steve White used his opening address at the association's annual conference today to warn the industry to be wary of current turmoil affecting the sector. He said that in political and economic terms, there are storm clouds on the horizon that BIBA is tracking.
Companies across the UK have been forced to pay out over £61m in health and safety fines throughout 2016 – almost 2.5 times that seen in 2015, according to BLM’s health and safety tracker. Research conducted by the insurance and risk law firm found that there were a total of 292 incidents recorded during 2016, with an average pay-out of almost a quarter of a million pounds. This is four times the £69,500 average cost seen the previous year, where 358 cases were brought.
This is a timely analysis of the increasing intrusion into strategically important cyber networks. “To assure their own cyber security, states will sometimes intrude into the strategically important networks of other states and will threaten – often unintentionally – the security of those other states, risking escalation and undermining stability,” the author writes. “This concept is hereafter referred to as the cyber security dilemma.”
Since its formation in 2004 the Institute of Operational Risk has expanded internationally through a number of chapters in the UK and Europe, Hong Kong and Nigeria. Throughout this period our mission has been solely focused on developing the discipline of operational risk. In 2016 we set our future strategy towards becoming the professional body of choice for operational risk practitioners.
Companies are paying lip-service to compliance and putting themselves at risk by failing to appropriately prioritise and resource it. The extent to which compliance functions are stretched contrasts with the increasingly aggressive and joined-up activity of enforcement agencies across the world and the punitive fines imposed on companies for non-compliance.
Police insurance specialist George Burrows, part of Arthur J. Gallagher, has won a tender to secure a three year partnership with the British Transport Police Federation, providing a suite of personal insurance covers. British Transport Police protects the railway and light-rail systems throughout England, Wales and Scotland, with 3,069. Important aspects of the programme include life insurance without exclusions, accident / sickness / counselling and legal expenses benefits.
Difficulty in quantifying losses tops the list of challenges to business interruption claims, according to a survey carried out by US-based risk and insurance association, RIMS. By taking control of their data, establishing a team and developing plausible business interruption figures before losses occur, risk managers can do much to lessen the confusion and frustration common to these claims process, according to the society's Business Interruption Survey 2017.
RMS has expanded its range of cyber models to include a new class of what it calls ‘cyber physical’ models. These explore a range of cyber attack scenarios that can cause physical damage to property, aimed at helping property re/insurers to manage this growing risk.
Swiss Re estimates its claims burden from Tropical Cyclone Debbie in Australia at approximately US$350m, net of retrocession and before tax. Swiss Re expects Cyclone Debbie to have resulted in a higher share of large commercial and corporate losses compared to similar events in the past. The total insured market losses for wind, flood and storm surge damages are estimated to be approximately US$1.3bn.
Cat modelling firm AIR Worldwide has released a cyber risk modelling application for the insurance and reinsurance markets. ARC (Analytics of Risk from Cyber) has been designed to evaluate any commercial policy (including those vulnerable to silent cyber), measure and monitor aggregations of cyber risk within a portfolio, and estimate potential insured cyber losses for portfolios.
National security is at the top of the agenda in France following the murder of a policeman by a suspected terrorist in Paris yesterday. Two others were wounded in the incident in the busy Champs Elysées area of the capital on Thursday. The incident takes place just days before the first round of voting begins for the presidential election. According to the Foreign Office, there continues to be a high threat from terrorism across France. Due to ongoing threats to France by Islamist terrorist groups, and recent French military intervention against ISIS, the French government has warned the public to be extra vigilant and has reinforced its own domestic and overseas security measures.
The newest entrant to the UK business continuity market is opening the doors to its first work area recovery centre. The new, 4000 sq ft Crossharbour Crisis Management Centre is the first independent recovery centre to open in the UK in over a decade, and was designed and built specifically to meet the needs of London businesses.
The government’s latest study of cyber preparedness among UK companies suggests that nearly seven in ten large businesses identified a breach or attack in the past year, and puts the average cost to large businesses of all breaches over the period at £20,000 and in some cases millions. The Cyber Security Breaches Survey 2017 also shows businesses holding electronic personal data on customers were much more likely to suffer cyber breaches than those that do not (51% compared with 37%).
Geopolitical instability and workforce management issues are the biggest challenges facing construction sector executives, according to new research released by Willis Towers Watson. It surveyed 350 C-suite executives across the globe to look at the most significant megatrends and critical risks facing the sector.
Crises Control has released two new modules on its platform and a new business solution. A new Task Manager Module allows the delegation and tracking of completed tasks and the creation of complex task work flows using predecessor logic; while the iSOP Wizard module allows users to quickly create their own bespoke business continuity action plans.
We live in uncertain times and how organisations respond to those times will determine the winners and losers in an environment in which risks are emerging faster and with more complexity. Those organisations that deliver or commission public services are no different.
The Lloyd’s Market Association (LMA) has submitted a detailed response to the Department for Transport’s (DfT) Technical Consultation on Motor Insurance. The UK government called for input from those involved within the motor insurance industry following the 2014 Vnuk judgement, a European Court of Justice decision that broadened the scope of compulsory motor insurance.
Corporate culture is increasingly coming under the spotlight as an important factor for gaining a competitive edge. And for good reason: culture may be a hard-to-define concept but its tangible benefits are clear. For example, an EY survey of FTSE 350 board directors found that 92% of respondents believe that investing in culture has improved their financial performance.
Can you estimate the financial value of your organisation’s reputation? Do you understand the advantages and disadvantages that flow from it? Do you understand how much reputational damage the organisation is prepared to risk, and how much it could comfortably survive?
The change to the discount rate announced by the Lord Chancellor – and the subsequent volte face and announcement of another review – wiped millions off insurers’ balance sheets, is likely to result in a hike in reinsurance rates and has created an expectation of premium rises for higher risk business. Even risk management body Airmic, not traditionally the first to jump to insurers’ defence, chipped in that this was a sorry state of affairs.
UKCloud has announced the launch a self-service replication and recovery solution powered by software provider, Zerto. Disaster Recovery to the Cloud is based on a pay-as-you-use cloud model; organisations can select applications that are crucial for the provision of public services, and therefore only pay for the disaster recovery or business continuity that is needed.
A strategic alliance has been formed between RQA and Security Exchange to provide consultancy support to product recall underwriters, brokers and their insured clients. RQA president, Lawrence Platt said, “We are pleased to be working with Security Exchange in this highly specialised field. Their services will add a whole new dimension to our own insurance market offering, enabling us together to provide clients with a truly comprehensive risk management portfolio on a global basis”.
The risk of human rights tainted tungsten, tin, tantalum and gold (3TG) entering the supply chains of tech firms is extending well beyond the traditional home of ‘conflict minerals,’ DR Congo and the Great Lakes Region of Africa, according to research from global risk consultancy Verisk Maplecroft. The company’s newly released Commodity Risk Service reveals that workers involved in the mining of 3TG, which are vital to the production of smartphones and computers, are exposed to a range of human rights abuses in many of the world’s biggest producing countries. Crucially, many of the risks posed by 3TG minerals outside of DR Congo and its neighbouring countries are overlooked by many companies, despite the fact their supply chains could be linked to armed groups and serious social and environmental impacts.
Airmic has announced the appointment of John Ludlow as chief executive of the association. Ludlow has over 15 years’ experience in senior risk management positions and has been a director of Airmic since 2012, including a year as senior deputy chair.
Clive Clarke, Airmic’s chairman, commented: “We are delighted to welcome John as the next chief executive. John has a fantastic record as a risk professional and is extremely well-regarded within the risk management community. Having worked closely with Airmic for years, he not only understands the needs of our members, but also has the experience and vision to continue the excellent progress made under John Hurrell’s pioneering leadership.”
BSI has published the second draft of ISO 45001 Occupational health and safety management systems – Requirements. The yet-to-be launched international standard specifies requirements for an occupational health and safety (OH&S) management system, with guidance for its use, to enable an organisation to provide safe and healthy working conditions for the prevention of work-related injury and ill health.
Verisk Analytics’ Property Claim Services has launched its first solution outside the P/C sector. The new loss aggregation service provides industry loss estimates for ocean marine and offshore energy events likely to exceed U$250m worldwide.
MetricStream has announced the release of its M7 platform and apps. The new platform and apps are designed to support GRC through enhanced mobility and layering, and sophisticated reporting and analytics. The MetricStream M7 Platform supports dozens of apps and solutions for risk management, compliance, audit, IT security, third party management, and other GRC professionals.
Willis Towers Watson has launched a cyber insurance solution specifically tailored to cover exposure across the global airline industry. Failure of critical IT systems is the most significant risk facing the global aviation industry.
The 2016 Riot Compensation Act takes effect this week -- good news for insurers, according to international law firm Clyde & Co. Repealing the 130 year old Riot (Damages) Act, it creates a new scheme that allows compensation to be claimed from local police authorities for property that is damaged, destroyed or stolen in the course of a riot.
Credit and political risk MGA, Anvil One has signed a partnership with AXA Corporate Solutions that will allow Anvil with AXA to underwrite credit and contract frustration risks, both trade and non-trade, as well as political risks.
Modern corporate liability exposures can arise from a growing number of sources and have the potential to result in larger and more complex losses for businesses than ever before. Plus, some rather unusual claims…
Lloyd’s of London has announced a profit of £2.1bn for 2016 despite the combined ratio moving from 90.0% to 97.9%. Conditions over the course of the year were extremely challenging with continued downwards pressure on pricing whilst traditional and alternative capital remained attracted to the insurance industry.
AIG has entered into a partnership with UK software technology provider VUEcloud, to offer customers a cloud-based motor fleet application. The new service enables policy holders to upload files directly to the cloud, such as photos and video footage from any internet enabled device including smartphones, laptops and dashcams.
The shortlist for the 2017 Business Continuity Awards has been announced.
Now in their 19th year, the Business Continuity Awards recognise those business continuity, security, resilience and risk professionals whose innovative strategies and industry savvy make them stand out above the rest, organised by CIR Magazine.
The winners will be announced at a Gala Dinner on 8 June 2017 at the London Marriott Hotel Grosvenor Square.
After months of uncertainty, Brexit has begun in earnest. The triggering of Article 50 started a two-year negotiation period, during which the UK will agree terms of its separation and future trade access with the EU. The commencement of negotiations does not, however, mean an end to the uncertainty. While negotiations for divorce may have begun, they are likely to be difficult and the timetable pressured. This could manifest on the insurance industry in a number of ways, and insurers, reinsurers and brokers are putting contingency plans in place in the event that a trade deal with the EU is not finalised at the end of the two year period.
Findings released today by the International Renewable Energy Agency (IRENA) show that energy-related carbon dioxide (CO2) emissions could be cut by 70 per cent by 2050 and completely eradicated by 2060 – and with a positive economic benefit. Perspectives for the Energy Transition: Investment Needs for a Low-Carbon Energy Transition, presents a scenario in which increased use of renewable energy and energy could achieve the emissions reductions required to limit temperature rises to two degrees, avoiding the worst of climate change.
THB, CNA Hardy and cyber security specialist Waterfall Security Solutions have entered into a partnership to provide a new cyber security protection package for industrial businesses.
Violent political events are up dramatically over the last year with one in four global organisations feeling the impact, according to the latest edition of the 2017 Clements Worldwide Risk Index (CWRI), released this week in Washington. The survey, compiled twice each year, found the number of organisations suffering the effects of a political violence event nearly doubled from a year ago, up 90% over the previous report issued last spring.
Organisations considering stand-alone cyber coverage should carefully evaluate their risk profile and determine whether more traditional policies provide adequate coverage according to some of the tips offered in a newly released RIMS Professional Report 'Cyber Insurance: Considerations for Businesses'.
A fire at a high voltage electrical substation left 45,000 properties in Leicester without power this week. The blaze at the substation in Leicester forced businesses to evacuate and roads to be closed. A high-risk asset, if damaged, transformers pose a serious threat to life, property and the environment. Yet the play a critical role in delivering energy efficiently and safely across networks.
Major global brands have pulled hundreds of millions in advertising spend from Google-owned YouTube following a scandal that has emerged over inappropriate content.
More than 250 organisations including the UK government, Johnson & Johnson, Verizon, Toyota, Tesco and McDonald’s and media including the Guardian and The Times -- which broke the news -- are among the growing number of customers angered by the activities of the internet giant which saw advertising placed next to extremist material, and the groups responsible receiving payouts from them.
The Metropolitan Police have detained at least eight suspects following counterterrorism raids in London and Birmingham, in connection with the attack in Westminster this week in which three people, plus the assailant, were killed.
A man was shot by armed police this afternoon outside the Houses of Parliament in central London after a police officer was attacked with a knife outside Parliament. The incident took place following reports of a number of people being hit by a car on Westminster Bridge. Police are asking people to avoid: Parliament Square; Whitehall; Westminster Bridge; Lambeth Bridge; Victoria Street up to the junction with Broadway and the Victoria Embankment up to Embankment tube. This is to allow the emergency services to deal with the ongoing incident.
JLT Re has joined forces with flood modelling firm, KatRisk, to provide flood risk modeling capabilities across Canada. KatRisk's suite of flood risk modelling tools includes both flood inundation maps at multiple return periods and software to generate location level probabilistic flood losses.
Brands such as Dyson, Aston Martin and Lego have topped the rankings for reputation among the UK general public, in a year that corporate governance – and the perceptions of fairness, ethics and transparency – have had a significant impact on company reputation. Some of the results may surprise our readers.
The insurance profession needs to prepare for the impact that increased levels of onshore fracking could have on UK households and businesses, according to a thought-leadership report from the Chartered Insurance Institute’s Claims Faculty New Generation Group. The group found that while existing products appear to provide adequate cover for households and small businesses, and no insurer specifically excludes fracking, there are no insurance policies that specifically cover it either.
RSA has expanded its SME book with the launch of an e-traded Business Combined product. Available via RSA Online and the Acturis platform, the new product comes with a range of features to enable brokers to tailor cover for business customers across a range of risks and sectors including manufacturing, wholesaling, supplying, retail, administration and leisure.
A report from the National Crime Agency and National Cyber Security Centre this week revealed the growing impact of ransomware attacks directed at businesses and households. The use of ransomware has increased dramatically in the last two years and this trend is continuing. Considering the implications for both consumers and businesses, Tim Smith, partner and head of technology and cyber at insurance law and risk firm BLM, said that with an average of four internet-connected devices per person, it was only a matter of time before cyber criminals looked to take advantage of such devices.
Guidewire’s claims management system, Guidewire ClaimCenter, has passed market acceptance testing for the London Market Electronic Claims File Write-Back (ECF). The new Write-Back functionality is designed to provide London Market businesses with greater flexibility when managing and handling claims. It removes duplication and inefficiencies by offering enriched claims data, transparency and management information while giving near real-time claim notifications.
The Stochastic modelling of liability accumulation risk report published by Lloyd’s and Arium marks a valuable milestone in the development of solutions to model and quantify casualty downside risk, according to Willis Re. The methodology is the culmination of a three-year project between Lloyd’s and Arium to improve insurers’ understanding of liability risk exposure.
A commercial vessel, thought to be an oil freighter, has been hijacked by suspected Somalia-based pirates in the Indian Ocean. According to reports from Red24. the vessel, with eight crew members, has been taken to the Alula area of Puntland.
The winners were announced last night by host, Holly Walsh at the 4th annual Commercial Insurance Awards gala at the Millennium Hotel, London Mayfair. Over 200 guests attended the ceremony to celebrate industry achievements of the past year. Congratulations to all of the winners and we look forward to another spectacular event in 2018!
Markel has launched a surety offering, following the appointment Damian Manning to head up the new team and David Chandler as senior underwriter.
The business will initially focus on the UK, Ireland and Continental Europe with the intention to expand to other regions outside North America.
AIG has today announced plans to locate an insurance company in Luxembourg to ensure continued smooth operation of its business across the European Economic Area and Switzerland once the UK leaves the European Union. From 2019, AIG will have two AIG subsidiary insurance companies in Europe – one in the UK to write UK business and one in Luxembourg to write EEA and Swiss business, which will have branches across the EEA and Switzerland. AIG currently writes business in Europe from a single insurance company based in the UK, AIG Europe Limited, which has branches across the EEA and Switzerland.
Willis Towers Watson has released an updated version of its Radar pricing software. Radar 3.0 features new analytical techniques, now implementing a wider range of machine learning models. Processing speed is also up to five times faster.
CFC Underwriting has launched a cyber incident response app, designed to allow policyholders to notify a claim and receive specialist support from its global cyber incident response team within minutes. The app also provides global cyber news and can be configured such that excess insurers and other members of the policyholder’s incident response team are notified at the same time.
Law firm Eversheds Sutherland has launched two e-learning modules, developed to train businesses to understand and manage their risks related to modern slavery. Thought to be among the first interactive tools launched to educate employees on modern slavery, the solution is designed to help staff better recognise what modern slavery is and help with compulsory reporting relating to how they are tackling it.
This new reporting duty applies to commercial organisations carrying on business in the UK, with a turnover of over £36m and supplying goods or services, many of which will be required to publish their first statement by June this year.
PwC has created a working blockchain prototype for the London Market Target Operating Model (TOM) Innovation Exchange. The project is aimed at exploring the degree to which blockchain technology can reduce costs and speed up the payment process in the specialist insurance market.
CFC has increased the available limits of its transaction liability insurance product suite across all territories, and now has the capacity to offer limits up to £30m in the UK and €35m in eurozone countries. Transaction liability practice leader, Matthew Giddings, said transaction liability insurance continues to gain traction with an increasing proportion of M&A deals using this type of cover as both a risk management and deal facilitation tool.
FM Global has developed a new design for automatic fire sprinkler protection, with enhanced sensitivity to thermal radiation from flames and suitable for applications including spaces where sprinkler protection is required beneath grated mezzanines, and special fire hazards such as covered open yard storage.
Pool Re has increased its commercial reinsurance cover to £2bn, an increase on its previous limit of £1.95bn. The two-layer programme, brokered by Guy Carpenter and placed with a stable and secure panel of reinsurance companies (which includes Members of Pool Re as well as global reinsurers) led by Munich Re, mirrors the cover currently provided to Pool Re members and includes chemical, biological, radioactive and nuclear terrorism risk.
While many organisations continue to focus on the technology aspect of cyber defence, which is crucial, it is people risks which represent the largest source of data breach claims. According to Willis Towers Watson, businesses must focus more on employees and company culture in efforts to manage cyber risk. Their own claim data show that employee negligence or malicious acts account for two-thirds (66%) of cyber breaches, where by contrast only 18% were directly driven by an external threat, and cyber extortion accounted for just 2%.
Markel UK has extended the cover on its charities and community group’s product to cater to a wider range of organisations, including those with incomes of up to £1m, providing sector-specific insurance for small charities and community groups on modest budgets. The new policy includes such specialist risks as damages arising from abuse.
Companies operating in China are being urged to familiarise themselves with a new cyber security law that takes effect in June 2017. The new rules, designed to tighten state control over information flows and technology equipment, means foreign companies doing business in China will be required to localise any data that may contain sensitive privacy data or state secrets. The penalty for not doing so can result in fines for organisations or civil and criminal penalties including imprisonment or death penalty for individuals.
A risk and safety consultancy that provides services to safety critical industries has been awarded an R&D grant worth almost £70,000 which will be used by the company to help improve the safety and operations of civil nuclear power plants. Using the grant, UK-based Corporate Risk Associates (CRA) will be conducting a research project aimed at enhancing the industry’s understanding of potential system failures in nuclear power plants, aiding both plant safety and the uninterrupted supply of electricity.
Airmic has expressed concern over the impact on commercial policyholders of the reduction in the Ogden rate announced by the Ministry of Justice (MoJ) this week. Deputy CEO Julia Graham said the association supports the need for the discount rate to reflect a fair compensation system, but that it is “deeply concerned about the timing and scale of the change” and the impact on businesses. “Not only has the industry not been appropriately consulted, the decision is based on a formula in desperate need of reform,” she said.
Dow Jones Risk and Compliance has completed its acquisition of RiskAverter from US-based Compliance Strategies International. The RiskAverter product will be fully integrated within Dow Jones’s workflow application, providing a solution that enables user companies to automate risk scoring to more effectively assess third parties in relation to anti-corruption and other regulatory compliance risk areas.
The insurance industry could face asset-stranding and liabilities on a global scale as a result of climate change, according to a new report published today by Lloyd’s. The study, carried out in partnership with the University of Oxford Smith School of Enterprise and the Environment, looked at the impact of climate change-related regulation and taxation policies and how they could create stranded assets, or assets that are subject to a sudden or unexpected write-down or devaluation. The report found this to be especially relevant for insurers and reinsurers exposed to vulnerable carbon-based assets and liabilities in the energy, commercial property and shipping sectors.
With Article 50 due to be triggered by the end of March, UK brokers remain resilient despite initial post-Brexit uncertainty, according to the findings of the Q4 Broker Pulse survey from insurance and risk law firm BLM. Of those questioned, 97% said that they had not seen a drop in appetite for UK insurance products since the EU referendum vote last June. This was the key finding from the most recent Broker Pulse, a quarterly poll which questions UK brokers on issues affecting their community.
Cyber attack is once again the top threat perceived by businesses, according to research published this week by the Business Continuity Institute (BCI) in association with BSI (British Standards Institution). Eighty eight per cent of organisations are concerned about the possibility of a cyber attack. The threat of a data breach follows (81%), while unplanned IT and telecom outage remains third greatest concern (80%).
Cyber risk security controls that meet international standards like CSC20 might not be fit for purpose. This is one of the findings of a white paper produced by the University of Oxford and Novae Group. Academics, led by Professor Sadie Creese, at Oxford’s Department of Computer Science and the Saïd Business School found that the standards set by international bodies are often not backed up by objective, empirical research, and so cannot be shown to have quantifiable benefits. This shortfall weakens the value of compliance to risk control standards because a compliant organisation may not be protected from cyber-related harm.
Willis Towers Watson has entered into exclusive negotiations to acquire French aviation brokerage, OAAGC. Paris-based OAAGC (Office d’Assurances Aériennes G. de Cugnac) was founded in 1898 and its team of 16 is dedicated to aviation insurance solutions. OAAGC and its team have a long-standing relationship with Willis Towers Watson.
Nearly 200,000 people were evacuated in northern California this week after the Lake Oroville reservoir reached full capacity and dam operators discovered damage in the dam’s infrastructure. The substantial water level was caused by tremendous rainfall from a series of recent storms. This resulted in the first use of the auxiliary spillway in the reservoir’s history. A report from Aon Benfield's Impact Forecasting team estimates the cost of repair to the spillways at up to US$200m.
The Financial Reporting Council (FRC) has announced a fundamental review of the UK Corporate Governance Code, taking on board its work on corporate culture and succession planning, and the Government’s Green Paper and the BEIS Select Committee inquiry. Responding to the Corporate Governance Reform Green Paper, linking executive remuneration with performance, extending the FRC’s enforcement powers and the importance of stakeholder views will all be underlined, and indeed the FRC is seeking input from a broad spectrum of stakeholders, including its own Stakeholder Advisory Panel on the review.
Underwriters increasingly need to ask searching questions about how businesses are responding to climate change, according to lawyers at Clyde & Co. The call comes on the back of the potential for a growing volume of litigation and disputes in which corporate boards are being held to account for alleged reporting, regulatory and fiduciary failures linked to climate change and the fossil fuel sector.
Negative media reports of operational losses suffered by banks and insurers can cause the market value of firms to fall by significantly more than the value of the reported loss, according to a UK university research paper. News articles that adopt a negative tone when reporting on loss events can have a reputational impact that further decreases the share price and increases default risk, the research suggests. In the case of a company’s share price, just a 10% “increase in negative tone” can lead to an additional loss in equity returns of 0.61% and an increase in Credit Default Swap spreads of 0.43 basis points. In addition, media reports that also mention a threat of litigation can lead to further equity losses of 0.21% and 0.48 basis points for a 10% increase in “litigious tone”.
The Institute of Risk Management has welcomed an announcement made by the Department for Culture, Media and Sport recently that it will be providing £20m for cyber security lessons in schools, which will be designed to fit around pupils' current courses and exams.
Disaster recovery provider Databarracks has launched a new initiative aimed at establishing a central source for calculating the true cost of IT downtime. The Cost of IT Downtime brings together academic research with case studies, as well as encouraging businesses to contribute to the project with their own experiences and methods of calculation.
The increasing number of food and vehicle product recalls around the world is leading to heightened government scrutiny of manufacturers’ ability to safeguard consumers, according to figures released today by law firm Clyde & Co. It says that in the EU, food alerts have risen from 10 in 1995, to 519 serious alerts in 2013, and a record high of 818 such alerts in 2017. Alerts for motor vehicles have also seen a significant rise, up from 149 notifications in 2012, to 372 notifications in 2016.
Understanding, anticipating and properly responding to reservation of rights letters is integral to risk professionals’ ability to protect their organisations and realise the full value of insurance policies, according to a new RIMS report, 'A Risk Management Guide to Reservation of Rights'.
Last year saw insured loss estimates from major natural catastrophes reach US$39.5 billion -- the highest since the annual market losses of US$60bn in 2012, according to figures from Willis Re. The largest single insured loss came from the Kumamoto earthquake in Japan in April 2016 with losses exceeding US$4.8bn. Other notable events in 2016 included Canada’s Fort McMurray wildfire in May which caused insured losses of around US$3.5bn; Hurricane Matthew in early October resulted in the largest single insured loss in the United States at US$2.3bn; and the combined effects of Windstorms Elvira and Friedrike in Europe in the summer produced losses of approximately US$2.48bn.
Fire safety organisation, FPA is re-launching its insurer backed LPC Training offering. Courses will be aimed at those who manage or have the legal responsibility to maintain alarm, security and CCTV systems, as well as those supplying and installing those products.
Specialist lines underwriting agency CFC is expanding its presence in the UK medical malpractice insurance market. The new, Lloyd's backed product is a tailorable package suitable for a wide range of healthcare professionals and organisations including affinity groups or schemes and individual professionals
Deborah Ritchie speaks to DAC Beachcroft partner Sally Roff about what she thinks is the greatest change in sentencing enforcement since the Health and Safety at Work Act 1974
The deadline for entries for the 2017 Business Continuity Awards has been extended to 24th February. The winners will be announced on 8th June at the London Marriott Hotel Grosvenor Square. This year's host...
Arthur J. Gallagher has developed a bespoke policy aimed at transferring cyber risks
specific to the manufacturing industry. Backed by A-rated Lloyd’s capacity and led by Brit, Gallagher has developed a custom wording in conjunction with manufacturing trade bodies and global Fortune 500 companies to ensure cover most closely matches current and emerging exposures.
A number of themes are emerging that are likely to dominate the security landscape in 2017, among them the rise of a “virtual Caliphate”; the resilience of Al Qaeda and the development of CBRN expertise. These and other emerging terrorism risks have been outlined in a new report from Pool Re’s Terrorism Research and Analysis Centre.
RSA has introduced its new Global Risk Solutions (GRS) operating model. Effective immediately, GRS will consist of three units, with each head reporting to Hayley Robinson, GRS managing director. Led by Richard Turner, the Europe business will be responsible for Europe specialty lines, Europe & international marine, Dubai International Financial Centre and Scandinavia hull; Specialty & Wholesale will be led by Gareth Hilton and will cover London Market construction and engineering, renewable energy, marine and wholesale international P/C; and UK & Multinational, led by Gary Long, will covers the existing UK and multinational risk managed business including real estate.
The British Insurance Brokers’ Association (BIBA) has launched a new facility with Accelerate Underwriting that allows members to place non-standard and niche commercial insurance schemes business. In a change for the association, the agreement with Accelerate is not product specific, instead it provides a solution that allows brokers to create insurance schemes, or manage existing arrangements more efficiently.
Marsh has announced the availability of its new CyberShield cyber risk and data breach insurance policy. Aimed at medium-sized to large organisations, the new cover is available outside the US and can provide up to £500 million in cover.
While there is no one formula for designing a perfectly resilient organisation, there are many ways to build resilience capabilities; resilience is a function of an organisation’s ability to access and use resources when it needs them. This is the message from within this book’s pages; and while there are just 200 of them, each packs quite a punch.
This multi-contributor title has been written by a range of authors from across the US and the UK, with chapters from risk consultants, academics and associations. As such, Operational Risk Perspectives is precisely that – a range of different views and approaches to operational risk management. The result is a set of essays that will be of most use to the seasoned practitioner.
After nine years as chief executive of Airmic, the association has announced that John Hurrell is to step down. Hurrell became CEO in January 2008 following a career of almost 30 years at Marsh & McLennan. During his period in office, Airmic published several pieces of research, including Roads to Ruin and Roads to Resilience. Most notably, he was instrumental in working with the insurance market to achieve the Insurance Act 2015.
Research conducted by the British Standards Institution reveals the scale of the modern slavery issue facing UK businesses. Its 'Human Trafficking and Supply Chain Slavery Patterns Index’ suggests UK businesses are at particularly high risk of modern slavery. Russia, Slovakia, India and Pakistan, according to the Index, are all ‘severe risk’ source countries. Of the G7 nations, Italy is identified as a ‘high risk’ nation – partly due to the conflict in Syria. Greece and Turkey are additionally categorised as ‘high risk’ countries.
I read with interest an article by Institute for Fiscal Studies director, Paul Johnson in The Times this month, in which he referred to the essay by philosopher Isaiah Berlin, 'The Hedgehog and the Fox'. The basic premise is that people can be divided into two groups where foxes draw ideas and inspiration from multiple sources and are comfortable with ambiguity and a wide range of inputs; and hedgehogs see the world through a single lens and try to make sense of it by fitting events into this view or paradigm. Johnson was using the essay to draw parallels between Bank of England chief economist, Andrew Haldane’s recent comments on economists, and foxes.
Unisys has announced the launch of a new set of cyber resilience services to help plan for crises related to cyber attacks by simulating real-world threats and using them to develop effective avoidance and response policies and procedures.
The issue of consumer vulnerability has been brought into sharp focus in recent years and lots of industries and organisations have looked at the issue through their own particular lens. Insurance is one of those, and it is also one that could and should do more to help customers.
BP has published its annual Energy Outlook, which sees the move from fossil fuels to sustainable energy in the Western world being outpaced by the growth in demand from Asia. The company estimates that over the next 20 years the energy transition world’s economy will almost double in size, driven by fast-growing emerging economies, as more than two billion people are lifted from low incomes.
It is just over 12 months since Storm Desmond wrought havoc in many parts of the UK; an event that, according to the Centre for Ecology & Hydrology, ranked alongside the devastating flooding of March 1947 as the largest event of at least the last century. In responding to major emergencies like flooding, emergency services and local authorities play a crucial part in managing the immediate aftermath, supporting local people and businesses as well as restoring the public realm. Those organisations are well versed in having emergency plans for such circumstances and regularly test aspects of these plans to ensure they are robust. They are also under a duty to ensure that they have plans in place to respond to events that may affect their own services during an emergency.
AXA has announced a partnership with resource management advisor, SUEZ aimed at improving resilience of cities and territories against flood risks. The new joint offering, available globally, will provide communities and industries with analysis of vulnerability to any form of flooding (flash flood, marine submersion, rising groundwater level, rupture of hydraulic structures, overflowing); solutions to reduce vulnerability for locations and territories through business continuity plans, education and prevention; and tools for awareness and assistance in crisis management (alert tools, material and human means, and so on).
As risk professionals, we spend a lot of time considering the new and emerging risks facing our organisations. But how often do we look closer to home? What about the risks facing our own profession? The UK risk management industry is in good health, with an excellent talent pool and growing status within organisations. But it could be failing to attract young people.
Aon Global Risk Consulting has launched a new modelling tool for oil, gas and petrochemical clients. The Aon Loss Estimating Risk Tool (ALERT), developed in collaboration with research agency, TNO the new tool has been designed to model the potential financial impact of a wide range of fire and explosion scenarios in the hydrocarbon processing industry.
A new study of senior financial executives has identified the top operational risks that have harmed their companies in the past five years. Sixty-six per cent of financial executives surveyed say their organisations have been harmed by equipment failure, nearly 60% say their firms have been impaired by data breaches or cyber attacks, and more than half (52%) have had their operations affected by natural disasters. Yet the majority (54%) say their organisations have not developed or tested formal loss-recovery plans.
The rise of ‘new professions’ and ‘hybrid businesses’ and their need for tailored Professional Indemnity (PI) insurance. This is among the major trends expected to influence the insurance market in 2017, according to the Annual Insurance Review by law firm RPC.
An ambitious £3.5m hardware upgrade is being rolled out to business continuity customers of converged IT and communications provider Daisy Group. The major investment will equip all of its 13 nationwide work area recovery sites with 6,000 latest desktop computers from global hardware provider Hewlett Packard.
The British Insurance Brokers’ Association (BIBA) has called for the government to commit to no further increases to Insurance Premium Tax (IPT) and to negotiate for single market access in the EU exit. BIBA has also called for the Financial Conduct Authority (FCA) to prioritise cost-effective supervision following a 70% increase in regulation costs for small insurance brokers. The calls have been made in BIBA’s 2017 Manifesto ‘Enabling the Insurance Market’ which was launched in the Houses of Parliament.
Having lagged behind their financial services peers in adopting digital technologies due to regulations, reluctance and cost, an increasing number of insurers now regard investment in digitisation a priority. These are the conclusions of a survey conducted by Willis Towers Watson, which shows that almost three-quarters of insurers believe the insurance sector has failed to show leadership in digital innovation.
Globalisation and trade challenges highlighted by the US election and Brexit referendum usher in a year of heightened strategic uncertainty on both sides of the pond – difficult topics which have become impossible to avoid and, according to Control Risks’ CEO Richard Fenning, may even make 2017 “one of the most difficult years for business’ strategic decision making since the end of the Cold War”. Such high levels of complexity and uncertainty will force boards to undertake comprehensive reviews of their approaches to risk management. Risk professionals at the Institute of Risk Management (IRM) echo this sentiment, citing political risk among their chief concerns for the coming year.
Pardus has announced the launch of a contingency facility backed by Lloyd’s security (led by XL Catlin) and the recruitment of Wayne Paternoster. He joins the MGA with more than 20 years of underwriting experience and most recently was the divisional managing director of the specialty unit at Markel International in London. In addition to his role as contingency underwriter, Paternoster will be part of the executive management team overseeing Pardus’s underwriting activities.
Companies are increasingly worried about the unpredictable business environment where markets are volatile and political perils, such as protectionism or terrorism are on the rise. Other growing concerns are digital dilemmas arising from new technologies and cyber risks, as well as natural catastrophes. However, what continues to trouble them most, are losses from business interruption. These are the key findings of the 6th annual Allianz Risk Barometer analysing corporate risks globally.