Mactavish has challenged the Association of British Insurers and insurance providers to guarantee that flaws it says it has identified in cyber policies will never be used to block claims payments. Chief executive officer at Mactavish, Bruce Hepburn has said some insurers and brokers were quick to denounce the consultancy’s findings in “dozens of ‘off-the-shelf’ cyber insurance policies”.
UBS has been fined £27.6m by the Financial Conduct Authority for failings relating to 135.8 million transaction reports between November 2007 and May 2017. The FCA said UBS failed to ensure it provided complete and accurate information in relation to approximately 86.67m reportable transactions. It also erroneously reported 49.1m transactions to the regulator, which were not, in fact, reportable. Altogether, over a period of almost a decade, UBS made 135.8m errors in its transaction reporting, breaching FCA rules.
The 2019 Business Continuity Awards finalists have been announced. Now in its 21st 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.
The PRA and FCA have hosted the first meeting of the Climate Financial Risk Forum (CFRF) with the objective of sharing best practice in responses to the financial risks from climate change. It brings together senior representatives from across the financial sector, including banks, insurers, and asset managers to discuss issues surrounding climate change and society’s response to it as it presents financial risks that are relevant to the PRA’s and FCA’s objectives.
Cat risk modelling firm AIR Worldwide has estimated insured losses due to wind from Winter Storm Eberhard will range from E900m to E1.5bn, the majority of which are expected in Germany. Winter Storm Eberhard follows on the heels of Freya/Bennet, which affected Wales and England on 3rd March, bringing strong winds and some flooding, then impacted Germany and parts of France and Denmark through to 5th March Laura/Cornelius, which affected the UK and Scandinavian countries later the same week; and Dragi, which affected Northern Europe just before Eberhard.
A new MGA has been launched to address the threat of cyber attack among SMEs. Headed by company partner and co-founder Dennis Culligan, capacity for the cover is being provided by Hiscox. The online MGA will target UK businesses both directly and via strategic partnerships with brokers and intermediaries.
Aon has partnered with US-based AI company, Zesty.ai, in an alliance that will support underwriting decision making through access to more than 130 billion data points on buildings and their surroundings. Using satellite and aerial imagery, the data will help enable granular risk analysis and informed pricing without physically setting foot in the area.
Following the rejection last night of a revised version of the EU Withdrawal Agreement, the government has this morning published details of the UK’s temporary tariff regime under a no-deal scenario. It says British businesses would not pay customs duties on the majority of goods when importing into the UK if we leave the European Union without an agreement.
It is now illegal to fly a drone within 5km of an airport, with major penalties for those who break the law, as new legislation to extend the no-fly zone around airports comes into force today. This change to the law is brought in ahead of the new Drones Bill, which will give police significantly increased powers to deal with the illegal use of AUVs.
The Chartered Insurance Institute and SAMI Consulting have launched a research project into the impact on insurance of the digitisation of medical records. As more medical records are digitised and health data is collected on apps, wearable tech and voluntarily offered to health service providers; there is a wealth of underwriting data available to insurers. This new research project will explore how this can be used for the benefit of the customer to provide greater access to insurance and protection products.
A theme park operator has been fined £65,000 after nine passengers were injured and taken to hospital when a train on one of its rollercoasters derailed and crashed.
The incident, which took place at M & D’s Theme Park in Motherwell June 2016 involved a rollercoaster which crashed from a height of five metres into an area occupied by taxis and bikes.
The Association of British Insurers (ABI) is urging companies that have bolstered inventories of goods and raw materials ahead of Brexit to check that they remain fully insured. The association is concerned that firms that are said to be "stockpiling" may have overlooked the possible insurance implications and is urging them to check the terms and conditions of their commercial cover and, if needed, speak to their insurer or insurance adviser to ensure they have sufficient cover in place.
The government has announced up to £56m in funding for research into the potential health effects of climate change, including air pollution, antimicrobial resistance and global pandemics.
Climate change leads to more extremes of hot and cold weather, which can have a serious impact on the health of the nation. Pollution can cause chronic conditions such as cardiovascular and respiratory diseases, as well as lung cancer, leading to reduced life expectancy.
Business secretary Greg Clark said today, Monday, that a new, more powerful regulator is to replace the current Financial Reporting Council in a move that will "transform the audit and accounting sector". The new Audit, Reporting and Governance Authority was recommended by the Sir John Kingsman's Independent Review submitted in December 2018. Among the shortcomings identified in the review were a lack of transparency and issues with enforcement activity.
Bibby Financial Services has launched its digital insurance solution, Coverly, targeting contractors and small businesses looking for flexible business cover, which, it says provides a model to replace one that doesn’t work for modern business.
The winners of the 2019 Commercial Insurance Awards were announced last night at a gala dinner and ceremony hosted by comedian Kerry Godliman at the Waldorf Hilton in London. Congratulations to everyone shortlisted and particularly to...
Ahead of the next round of UK-EU talks this weekend, commercial insurance advisory, Mactavish has reiterated its warning to firms to consider more carefully the risk that individual directors could be personally exposed to legal action because of traditional limitations applied to D&O. It is urging companies to ensure their Brexit plans are comprehensive and clearly documented as they may be needed "to defend themselves against lawsuits bought by disgruntled investors, as well as to ensure their insurance remains valid".
Zurich has entered into a partnership with Riskmethods to provide its commercial customers with new supply chain risk management services using the Riskmethods AI-based technology to help customers identify, assess, mitigate and transfer risk related to their supply chains.
Lockton has hired Philip Corrigan to the role of regional COO as it looks to expand its business and expertise across APAC. Corrigan will join a growing team in the APAC offices on the insurance broker, which has bases and partnerships in China, Malaysia, Hong Kong, Singapore, Thailand, the Philippines and South Korea.
Hayley Spink has been appointed head of global operations at Lloyd’s. Spink joined Lloyd’s in 2007 and has served in a variety of operational leadership roles where she has implemented and overseen Lloyd's operations all over the world, including in Dubai, India, China, Malaysia, Colombia and Mexico.
Research from Capgemini suggests that financial services firms are lagging behind in digital transformation compared with other industry sectors. The sector reports falling confidence in its digital capabilities and a shortage of the leadership and collective vision needed to shape the digital future.
Aon is partnering with software company Skytek to provide real-time monitoring of insurers’ marine risks and identify accumulations for enhanced underwriting and reinsurance programmes, using technology which emerged from a Skytek/Aon research initiative with the European Space Agency.
The Met Police Counter Terrorism Command has launched an investigation after three suspicious packages were received at buildings in London today, Tuesday. It is treating the incidents as linked. According to a Met Police statement, the packages, all A4-sized white postal bags containing yellow Jiffy bags, have been assessed by specialist officers to be small improvised explosive devices. These devices, at this early stage of the investigation, appear capable of igniting an initially small fire when opened.
Pool Re has today announced the completion of its £2.3bn retrocession programme with more than 50 international reinsurers and led by Munich Re. The three-year programme is one of the largest reinsurance deals in the world, and the largest ever terrorism risk placement. It covers property damage arising from CBRN attacks; those arising from cyber-triggered terrorist losses; as well as conventional terrorist acts.
By customising an active shooter plan that focuses on prevention, training, feedback and post-incident protocols, employees will be mentally and physically prepared to react to violent threats, according to RIMS new report.
The ARAG Group is to launch operations in the Republic of Ireland through the acquisition of DAS Legal Expenses, part of the ERGO Group. ARAG and DAS reached agreement earlier this month on the business transfer and retention of the present staff.
The Environment Agency has published a new economic assessment to aid planning for flooding and coastal risk management over the next 50 years. The study uses climate change, population and mapping data to set out future flood risk scenarios with the aim of assessing the most effective funding allocation.
JLT Specialty and Allianz Global Corporate & Specialty have created a corporate reputation product for SMEs in the entertainment, hospitality, food, beverage, travel, communication and technology, education and healthcare sectors. An industry first, Reputation Protect Plus provides coverage against the loss of net operating profit from a reputational crisis, combined with a crisis response service to companies that rely heavily on consumer trust and are particularly vulnerable to reputational damage. Insureds are also provided with comprehensive reputation analysis, overseen by MediaTenor International, to identify the potential risks to their business in order to develop response and prevention strategies.
A significant shift towards commercial lines is occurring in the insurtech space, with a focus on data and analytics for risk selection and pricing, specialist insurance systems and claims. This is among the findings of research conducted by London-based insurance advisor, Oxbow Partners, which reveals the 25 technology-led businesses it believes to be well positioned to have a major impact on the European insurance industry.
The Financial Conduct Authority has published "near-final" rules and guidance that will apply in the event the UK leaves the EU without an implementation period. Major institutions have planned for all Brexit scenarios for over two years but a grace period will no doubt offer relief in the form of greater regulatory predictability.
Ascent Underwriting has added physical damage cover to its CyberPro product, bridging the gap between cyber and property policies. With additional capacity provided by Munich Re, CyberPro now covers physical and property damage plus debris removal following an insured event
Geopolitical tensions, increasingly protectionist sentiment and ongoing trade disputes are leading to increased uncertainty and risk for multinationals with direct foreign investments, according to a new report from Marsh. The risk adviser says a transition to a more 'multi-polar world order of protectionism' is likely to continue in 2019, with isolationist and protectionist sentiments and practices rising in some counties, halting, at least momentarily, the process of globalisation.
Britain’s state-backed terrorism reinsurer, Pool Re has placed a £75m catastrophe bond, bringing new sources of capital to the terrorism risk market, returning additional premium to the private sector, and further shielding UK taxpayers from the risks Pool Re mutualises.
Trilogy has launched new UK construction product, with capacity provided by Great American International Insurance DAC. The new cover features high policy limits of up to £10,000,000, offering comprehensive cover for most building, civil and engineering trades operating in the UK construction sector.
A number of beer and wine brands sold in the US contain toxic glyphosate, the main ingredient in weed killer, Roundup, according to a new report by the US PIRG Education Fund. The organisation is calling for the popular pesticide to be banned. Its report is published as a San Francisco court began hearing arguments in the first federal civil case over whether Monsanto’s Roundup weed killer causes cancer.
Sixty-three insurtech deals with a total value of US$1.59bn were announced world-wide in Q4, 2018 -- the second-highest quarter behind the exceptional second quarter of 2015, according to figures from Willis Towers Watson. The advisory firm’s latest Quarterly InsurTech Briefing Attributes this rise in investment to the need to manage cyber risk.
Average commercial insurance prices increased by 2% in Q4 2018, according to figures released today by Marsh. Representing the steepest increase since the risk adviser began its index in 2012, it said composite pricing in Q4 increased in all global regions, with the pacific region seeing the biggest hike, of over 10% – a trend which has continued for seven quarters.
The director-general of the Association of British Insurers is expected to issue a warning tonight around the mounting risks of the ongoing Brexit negotiations. Huw Evans is scheduled to address insurers at the association’s annual gala in London, where he will caution that any future arrangement with the EU that required the UK to comply with rules it had no say over could be “weaponised by those in the EU that want to…damage the UK”.
Trade credit insurer Atradius has put in place a team of mental health first aiders. The 13-strong team at the firm’s headquarters have each received specialist training in mental health and employee wellbeing so they can spot the signs and symptoms of mental ill health issues.
Artificial intelligence attracted more funding during 2018 than any other emerging technology, according to analysis from GlobalData. With an increasing application of AI technologies across all sectors of industry, more than 1,900 investors funded 1,000 AI-based companies throughout the year, among them Horizon Robotics, Beijing SenseTime, Zoox, Yitu Technology and Pony.ai.
Despite President Trump’s claims that North Korea will become an “economic powerhouse”, Kim Jong-un’s authoritarian regime has been classified as the world’s most perilous investment destination for business, according to a study carried out by risk analysts at Verisk Maplecroft.
The Department for International Trade has issued an update on trade continuity after Brexit. Nearly half of the UK's trade is currently with the EU; a further 11% is covered by the existing EU trade agreements the government is looking to continue as bilateral deals after Brexit. The 20 smallest of these agreements account for just 0.8% of UK trade. The remaining 40% of trade takes place with other countries.
The market has welcomed a move by the Financial Conduct Authority to issue a final report on its assessment of competition in the wholesale insurance broker market. The FCA said that while it had identified some areas of concern and with scope for improvement, it found no need for the introduction of intrusive remedies.
The government has today published a new code of conduct designed to ensure artificial intelligence and other data-driven technologies used by the NHS are on point, safe and secure; and ultimately to support innovation in the most challenges areas of healthcare, such as dementia and cancer.
If the policing of autonomous vehicles is to be successful, the government will need to provide in-depth guidance to an already stretched judiciary, global law firm Kennedys has warned. In its response to the Law Commission's regulatory framework consultation for the safe deployment of AVs in the UK, Kennedys also raised concerns around a host of other technical and practical issues.
Charles Taylor Adjusting has opened a new office in Belgium with an immediate focus on further developing its property and casualty offering in Europe, building on its recent growth in construction and engineering, PI, cyber and major loss.
Telematics provider The Floow has been appointed adviser to the government on its Uplift Project, which aims to explore how telematics may improve the UK’s position in the motor insurance market, while making insurance fairer, personalised and more transparent for motorists.
Online motor insurance provider Hedgehog has teamed up with Premium Credit to offer premium finance to Hedgehog’s customers in its first year of business. The new entrant is offering motor insurance products aimed at drivers that face higher than average premiums for reasons such as holding points on their licence, a driving conviction or being declined by other insurers because of their postcode.
RMS has released its US Wildfire High Definition Model, to address the need for more granular analytics of wildfire risk across the 48 contiguous American states.Until now, the industry has relied on inadequate zoning and mapping products to evaluate wildfire risk. Recent cat events have highlighted many deficiencies in these tools, including the failure to account for structural vulnerabilities, the inability to highlight areas susceptible to urban conflagrations, the coarse resolution and the lack of probabilistic insight.
UK insurtech saw over US$1bn of investment activity through 2018, up from US$792m in 2017, despite stalling global investment levels, which declined year-on-year by almost half, standing at US$5.7bn for 2018. This is according to business adviser KPMG, whose ‘Pulse of Fintech’ report was published today.
A project to develop artificial intelligence technology for tackling fraudulent insurance claims is one of a number of new programmes set to receive funding under the government’s UK Industrial Strategy. The AI software, being developed by Intelligent Voice, Strenuus and the University of East London will combine AI and voice recognition technology that is said to detect and interpret emotion and linguistics to assess the credibility of insurance claims.
US and European equities rated as controversial underperform their benchmarks according to research conducted by Ossiam into the behaviour of stocks connected with environmental, social and governance (ESG) issues. Results showed that between January 2010 and September 2018, controversial equities in Europe and the US significantly underperformed non-controversial stocks by 7.4% in euro terms and 7% in US dollar terms respectively. This phenomenon is attributed to strong market reactions that penalise stocks as a consequence of controversy rating downgrades. These equities tend to show a slow recovery in price. The research findings are a strong argument for exclusion of stocks with high controversy scores from investment universes.
Mental Health First Aid (MHFA) England has today launched best practice guidance for employers on how to implement mental health first aid in the workplace, following the Health and Safety Executive’s (HSE) recent enhancement of its first aid guidance to clarify the existing need to consider mental health alongside physical health when undertaking a ‘needs assessment’.
Global insurance merger and acquisition activity was up 9pc to 382 completed mergers in 2018. The second half of the year was also the third consecutive six-month period of M&A growth for the first time since 2009. These are among the findings of law firm Clyde and Co’s latest M&A report, which cites the search for scale, technology and regulatory changes among the key drivers for the rise in the number of transactions.
Digital Risks has achieved Lloyd’s coverholder status, following an application sponsored by investor and partner, Beazley. Founded in 2015, Digital Risks developed an entirely online broker offering a range of products focused on emerging risks. All its policies are sold as a subscription model, with existing products backed by Aviva and Tokio Marine HCC.
BIBA has welcomed the granting of Royal Assent that will bring the Counter Terrorism and Border Security Act into UK law, which it says will greatly help businesses and increase resilience. Executive director of the association, Graeme Trudgill said the changing nature of terrorism had left businesses exposed.
Individuals using driverless cars should still not take their eyes off the road, if they could be expected to take over the vehicle at short notice in an emergency, the International Underwriting Association (IUA) has stated. Unless a vehicle is highly automated users should be banned from performing other tasks and legally required to monitor their journey.
The 2018 Counter-Terrorism and Border Security Bill received Royal Assent today. The passing of the bill into law means that Pool Re will be able to cover non-damage business interruption in the wake of a terrorist attack. The amendment makes the UK’s terrorism reinsurance pool the first in the world to extend its cover to include non-damage business interruption losses.
Specialist insurer Beazley has created a new division focusing on cyber and executive risks. The new division, led by Mike Donovan, brings together the insurer’s directors’ and officers’ (D&O) insurance and employment practices liability (EPL) teams. Head of the new division, Mike Donovan said the combined expertise of the new team will address a spectrum of risks that are increasingly hard for companies to manage.
BSI has released a significant revision to the 2010 British Standard for Legionella Risk Control, providing further guidelines for assessing water quality and the risk of Legionnaires disease.
BDO has completed its merger with Moore Stephens, creating the largest UK accountancy and business advisory firm serving the mid-sized market. The merged firm will operate under the BDO brand and as part of its international network, which has has 80,000 people and revenues of US$9bn across 162 countries
Aon has entered into a strategic alliance with global insurtech firm Claim Central to digitise claims management for P/C insurers. Claim Central’s technology digitises the entire property claims process, featuring live video streaming, aerial imagery, real-time chat, customer sentiment measures and digital payments.
ISO has released the official ISO 22301 Draft International Standard for Public Comment (DIS). BSI, as the UK’s National Standards Body, is seeking to consult with continuity and resilience practitioners, managers, and other interested parties to participate in this review aimed at improving this standard.
International reference guidelines for assessing information security controls have been updated to keep pace with the the changing risk. Developed by ISO and the International Electrotechnical Commission (IEC), ISO/IEC TS 27008, 'Information technology – Security techniques – Guidelines for the assessment of information security controls', provides guidance on assessing the controls in place to ensure they are fit for purpose, effective and efficient and in line with company objectives.
Betterview is to partner with Conifer Insurance to deliver property data and analytics to Conifer’s commercial lines underwriting team to assist in the underwriting evaluation process.
The solution uses AI to analyse manned aircraft and satellite imagery of individual risks, factoring in historical weather and other data sources to determine roof condition and various other characteristics necessary to evaluate the risk of future insurance losses.
The Financial Conduct Authority has come to an agreement with The European Securities and Markets Authority and other EU regulators around the exchange of information in the event the UK leaves the EU without a withdrawal agreement and implementation period.
The Financial Conduct Authority has today set out how it will use temporary transitional power in the event of a no-deal Brexit. Intended to minimise disruption for firms and other regulated entities, the Treasury has put forward draft legislation that would make transitional provisions if the UK leaves the EU without a withdrawal agreement.
BGC Partners has completed the acquisition of Ed Broking Group. Ed will become part of BGC’s insurance division, which was established in 2017 with the acquisition of Besso. Steve Hearn, currently group CEO of Ed, will become head of BGC’s insurance division.
Companies in the power and renewable energy sectors should be preparing themselves to contend with disruption to their businesses from a range of sources, including potentially adverse developments in the insurance market, according to a Willis Towers Watson market review.
Following its letter in autumn to 16 leading UK fashion retailers, the EAC has published its interim report, with JD Sports; Sports Direct, TK Maxx, Amazon, Boohoo and Missguided described as’ lagging’ and ‘least engaged’. None of these companies have signed up to SCAP (Sustainable Clothing Action Plan) to reduce their carbon, water and waste footprint or the ACT (Action, Collaboration, Transformation) labour rights and living-wage agreement.
AXA XL has entered into an agreement with Guidewire Software that will see the insurer roll out the software company’s Cyence Risk Analytics modelling solution across its cyber underwriting and pricing operations. Chief underwriting officer of AXA XL’s North America cyber team, John Coletti said cyber risk is very different from the traditional risks the industry has long been covering in that it is continually evolving. “Because it brings a real-time element to our clients’ risk landscape, it requires a new way of thinking. Through our partnership with Guidewire’s Cyence team, we are able to support our brokers and clients in understanding the cyber threat in a live environment and, ultimately, to take insurance from an annual transaction to a real-time interaction.”
Standards company, BSI has published a code of practice for managing the security risks related to connected automotive ecosystems. The speed with which this sector is changing raises questions, the company says, over whether all potential risk factors are being identified; or if sufficient contingency plans are in place. BSI’s recommendations cover the entire connected automotive ecosystem and its constituent systems, including manufacturing, supply chain and maintenance activities.
The public consultation process for the draft international privacy information management standard, ISO/IEC 27552 is now open. Standards company, BSI is seeking to consult with data protection practitioners, information security specialists and the technology industry on the safe and secure management of data amid the vast and growing collection and processing of personal information.
UK businesses benefitting from Horizon 2020 research funding are urged to register their details with the government so they can continue to receive funding if the UK leaves the EU with no deal.
The UK government has announced a further £100m to help eradicate the growing cyber threat. The investment is intended to support research into the design and development of hardware that is “secure and resilient from the outset”; it aims to “design out” many forms of cyber threat by “designing in” security and protection solutions into hardware and chip designs, ultimately helping to eradicate a significant proportion of the current cyber risks for businesses and services in future connected smart products.
Condensing 17 years of practice experience in the discipline and academic theory, Dr Chapelle has created an ‘all-in one’ guide to every aspect of financial operational risk. The author dives straight into the concepts of what risk is in its most basic form, then builds layer by layer into a comprehensive guide, explaining the relationship of each element, history where relevant and reasons for evolution, bringing the reader up-to-date with current best practice and theory. At no point is a prior knowledge of the areas or its jargon assumed, and in a meticulous fashion the author creates a journey that ends with a thorough overview and tackles each element one by one.
Outlets selling pre-packaged food could be required to follow new rules designed to give the UK’s two million food allergy sufferers greater confidence in the safety of their food. The moves follow the death of Natasha Ednan-Laperouse, the teenager who died after suffering an allergic reaction to a Pret a Manger baguette. Announcing the consultation to overhaul current labelling laws today, environment secretary Michael Gove said…
The insurance sectors of the UK and Switzerland are set to continue trading freely with one another after the UK has left the EU. The new arrangement will replicate the effects of the existing EU agreement with Switzerland and will come into force when the current EU-Swiss Direct Insurance Agreement ceases to apply to the UK.
The energy sector is undergoing rapid change. Following several years of belt tightening and cost cutting, many oil and gas companies are looking to expand into new projects and territories, and into renewable energy sources, according to a survey just published by the Institute of Risk Management.
Cyber security, Brexit, geopolitics and financial market fluctuations are among the chief concerns for businesses voiced by some of the UK’s leading risk experts as they look ahead to 2019. At the start of year, senior members of the Institute of Risk Management were asked to identify key risk areas for businesses in the year ahead. A broad range of financial, political and healthcare risks were highlighted. Many of these align with risks identified in the World Economic Forum’s 2019 ‘Global Risks Report’ – a publication with which readers of this magazine will I’m sure be familiar.
A report from the Ellen MacArthur Foundation, published in collaboration with Google and with analytical support from McKinsey & Company, estimates that artificial intelligence (AI) could accelerate the transition towards a circular economy, offering substantial improvements in three main areas: product design, operations, and infrastructure optimisation.
Organisations increasingly recognise that a strong approach to corporate social responsibility is not just a good thing to do – it’s a business imperative. Aligning business objectives and strategy to broader societal issues is at the heart of creating a sustainable business model, and thereby builds long-term shareholder value.
A growing number of local authorities are reportedly struggling to ‘balance the books’. Austerity has been with local government for eight years. Many council officers have identified that this point has been arrived at by a gradual process that has chipped away at the essence of local authorities – the services they deliver and the structures they use to do so. The accumulative effect, built up over years of budget cuts, adds to the anticipation around setting a sustainable budget. That becomes an ever more challenging prospect to finance managers, with higher risk levels and an increasing need to support the resilience of public authorities.
FM Global has become the first US insurer to take action to limit coal insurance. Together with other international insurance companies, FM Global pledged not to support the Adani Group’s proposed Carmichael coal mine in Western Australia. The list includes Allianz, AXA, Generali and Zurich, reinsurers Munich Re, Swiss Re, SCOR, QBE and Suncorp.
A no-deal Brexit and a sharper slowdown in China are the biggest risks to growth in the global economy in 2019, the International Monetary Fund has warned in its latest economic outlook. In a report published on the first day of the World Economic Forum summit in Davos, Switzerland, the IMF said that alongside already falling levels of growth in Europe, China and Japan, an escalation of the trade war between Donald Trump and Beijing over the coming months and the UK leaving the EU without a deal would lead to further downgrades in its forecasts for growth.
Modern business pressures, hugely burdensome remits and continuous regulatory changes are exposing senior business executives like never before to liability claims, according to research by QBE Business Insurance. It found that the risk of prosecution, bankruptcy and jail terms is now firmly on the agenda.
Businesses have been warned that a new era of infectious disease outbreaks could pose an economic and operational risk as great in scale as climate change over the coming decades, and that they must consider the steps they should be taking to mitigate the threats. The World Economic Forum, in collaboration with the Harvard Global Health Institute, today released a white paper that details why and how the business community should contribute more to manage the threat and impact of infectious disease on societies.
Staff shortages have escalated in the last three months to become the top emerging risk organisations face globally, according to Gartner’s latest Emerging Risks Survey. The survey of 137 senior executives in Q4 of 2018 showed that concerns about talent shortages now outweigh those around accelerating privacy regulation and cloud computing, which were the top two risks in the monitor for Q3.
There are just a few weeks remaining to enter this year's Business Continuity Awards. Celebrating achievement in business continuity, security and resilience, the Business Continuity Awards are the most anticipated event in the industry calendar and provides unrivalled networking, alongside a night of entertainment and celebration.
Three insurers make the top five of the annual ranking of most praised corporates, which is compiled by research consultancy SIGWATCH, based on its monitoring of comments of more than 9,000 NGOs over the past year. They overtake leading global consumer brands in retail, food and fashion such as McDonald’s, Aldi and H&M, which habitually respond constructively to NGOs and are commended as a result. Unilever is the exception to the rule, winning the title of most praised brand for the second year in a row, on account of its initiatives on issues such as palm oil, animal welfare, fragrance disclosure and sustainability.
Business sentiment around the ongoing Brexit talks is somewhat frayed after the government lost last night's vote in Parliament on its proposed deal. Even if yesterday’s deal had been passed, our future relationship with the EU would still be unclear, and as it is, businesses are left with even more questions than they had before.
Insured losses from major natural catastrophes in 2018 totalled roughly US$71.5bn, only slightly more than the annual average since 2011 but the third-highest total during the eight-year period, according to the latest figures from Willis Re. The average is driven upwards by peak annual losses of US$120bn in 2011 and US$143bn in 2017. In contrast to these previous peak years, where one or two natural disasters contributed a large percentage of the total insured loss, no such major event or events account for a large proportion of the 2018 losses. Instead, the total arises from a series of smaller and medium-sized loss events.
The Institute of Risk Management has entered into a multi-year agreement with computer-based testing firm, Pearson VUE. The first certificates to move to the new system include the Digital Risk Management Certificate (from November 2019); the International Certificate in Enterprise Risk Management (June 2020), and the International Certificate in Financial Services Risk Management (June 2020).
A bad Brexit is likely to lead to heightened business interruption risks, and a surge in D&O claims, many of which will be rejected by insurers, according to Mactavish CEO, Bruce Hepburn. “Directors of listed UK companies face major liability risks for failing to prepare adequately for Brexit, especially if there is a ‘no deal’ outcome,” he said, reiterating his earlier warning that UK directors may have overlooked new liabilities that could leave them exposed personally to legal action because of traditional limitations applied to D&O insurance cover.
Economic confrontation between major powers is expected to continue to hamper progress throughout the year, with rising geopolitical and geo-economic tensions the most significant risk for 2019, according to the World Economic Forum’s latest Global Risks Report.
Cyber threats and changes in legislation and regulation, including concerns around Brexit are considered the top risks by UK risk experts – and rank joint first according to the latest Allianz Risk Barometer. Meanwhile, cyber incidents are neck-and-neck with business interruption as the top business risks globally. But what was the new entry in this year’s barometer?
Whatever line of work we are in, mental health is one of the biggest issues we need to manage. Recent research produced by Mind showed that seven in ten workers have had poor mental health at some time in their lives, and the annual cost of poor mental health to employers is between £33bn and £44bn.
Accident aftercare and on-going mobility specialist, Amber Assist, has teamed up with VisionTrack to enhance its service offering to car and van fleets. Under the partnership the company will now be able to provide industry-leading vehicle CCTV and video telematics systems as part of its comprehensive accident management solution.
DAC Beachcroft has this week opened a new office in Paris – its first in France. The Parisian team, led by partners Vladimir Rostan d'Ancezune and Christophe Wucher North, will focus on both the global and domestic insurance and industrial risks sectors. The two have extensive experience of this specialist market and of international work in the UK, Spain, Germany, LatAm, Australia, the USA and Singapore. They join from HMN, a Parisian insurance firm.
Hiscox has collaborated with Brompton Bicycle to stage a ‘real world’ hack – simulating the effects of a cyber attack by constructing a complete clone of their east-London store overnight, hiring look-a-like staff and even stocking the shelves with counterfeit merchandise. Reactions of staff and passers-by were captured as the fake store - ‘3rompton’ - opened its doors to the public on the opposite side of the road and subsequently launched a series of cyber attack simulations on the genuine Brompton store in Shoreditch.
Amazon Web Services is reported to have acquired Israeli disaster recovery startup CloudEndure, in transaction that could highlight a wider transition taking place within disaster recovery, according to Databarracks’s Peter Groucutt. The MD of the business continuity and disaster recovery firm says he thinks the most surprising part is that it was AWS that acquired CloudEndure, not Google Cloud Platform.
Assurance Software has announced a merger with ClearView Continuity, in what together they refer to as a union of "technology and cultural synergies that will allow us to accelerate product innovation and enhance customer value".
Beazley is expanding its insurance offering in Asian markets through a new financial lines capacity arrangement with Hong Kong-based coverholder Pegasus Underwriting. As part of the arrangement, PUL's financial lines capability will be supported by Beazley capacity across professional indemnity, D&O, cyber and medical malpractice.
CFC has announced expansions to its cyber insurance cover, introducing business interruption as well as expanded cover for a variety of cyber crime activities. Under the provider’s new cyber insurance product, insureds will now have business interruption cover that is triggered by IT system failure as well as malicious cyber events. The updated policy also provides full supply chain business interruption cover, extending to events that impact the insured’s systems, the systems of their technology suppliers as well as those of non-technology suppliers where named.
State-backed terrorism reinsurer, Pool Re announced this morning that is to cease reinsurance activities after the first quarter of 2019. As a result of sufficient capacity now existing within the commercial insurance and reinsurance markets to cover contingency losses arising from acts of terrorism, it will cease to reinsure members for the contingency cover provided to insureds.
Specialist risk management software provider, Sword GRC has acquired Magique Galileo. The new, combined offering will combine solutions from Sword Active Risk, Sword Achiever and Magique Galileo; with employees of the three brands located in the UK, USA, Asia and Australia.
Arthur J. Gallagher is to acquire specialist UK insurance broker Stackhouse Poland. Founded in 1974 as a local community broker, Stackhouse Poland now generates over £55m in annualised revenues. With more than 500 employees, the broker operates from a network of 23 offices across the UK and has insurance divisions specialising in high-net-worth private clients, real estate, commercial, healthcare and a wide range of specialist insurance sectors.
Congratulations to all our finalists in the 2019 Commercial Insurance Awards. Now in their sixth year, these awards are the showcase for excellence within commercial insurance. View the shortlist here: http://www.commercialinsuranceawards.com/awards/
UK company directors could face liability risks for failing to prepare adequately for Brexit, particularly in the event of a no-deal outcome, according to Mactavish. The insurance governance consultant believes directors have overlooked these potential new liabilities, which could leave them personally exposed to legal actions because of the traditional limitations applied to directors’ and officers’ liability cover.
*UPDATED* Sightings of drones flying close to Gatwick Airport Wednesday night closed the UK’s second busiest air terminal. The runway was shut throughout Thursday. Over 120,000 people were affected by the closure.
JLT Re has partnered with motor InsurTech company, Pact Insurance to create a digital insurance solution to cover established and emerging mobility risks. “Consumer lifestyles are increasingly digital and dynamic, growing the divide between one size fits all coverage and consumer behaviour," said Paul Lee, CEO, Pact.
More than US$1.3bn of InsurTech funding was completed during the third quarter of this year, double that of previous quarter. Q3 saw eight transactions over US$40m, according to Willis Towers Watson’s Quarterly InsurTech Briefing, which says it’s parametrics bucking this sharp upward trend.
The Civil Liability Act 2018 has received Royal Assent, and under its provisions, the Lord Chancellor must start a review of the rate within 90 days. He must then determine the rate within 140 days of the review commencing, meaning that the latest he can set the new rate is 7 August 2019.
As we head into the new year, globalisation, interconnectivity and the increasing number of entities involved in global supply chains will produce ever more complex 3-D chains or ‘value matrices’. This in turn exposes suppliers to an exponentially increased level and range of associated risks, both tangible (physical products and impacts) and intangible (data and services). Dependency on the capabilities and integrity of other organisations, even if tightly contractually controlled, can create weak links in the chain.
An up-to-date summary of all our predictions so far. For the full article, simply click on the headline.
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No surprises that cyber insurance will continue to develop in 2019. While big brand data breaches catch the headlines, the need for a cyber insurance to protect all sizes of business and organisations is clear, and the need for a cyber insurance market is obvious. However, we do need to have a sea change in how cyber policies are written and managed in 2019.
Reacting to no-deal contingency plans published by the European Commission today, Hugh Savill, Director of Regulation at the Association of British Insurers said the European Commission had "not lifted a finger to allow insurance contracts to be fulfilled. “While the action on derivatives is welcome it is extraordinary that the EU authorities will act to help major financial institutions but not millions of ordinary people living in Europe whose insurance and pension contracts happen to be held in the UK,” he said.
The Financial Conduct Authority has published new rules and fees that will apply to all claims management companies (CMCs) from April 2019, when the watchdog takes over responsibility for their regulation. From next April, all CMCs set up or serving customers in England, Scotland and Wales will have to be authorised by the FCA to continue operating legally. To be authorised by the FCA they must demonstrate they meet minimum standards to operate. Any firm that isn’t authorised will have to stop handling claims.
Arc Legal has been appointed by RSA as supplier of legal expenses insurance services across its commercial and personal product lines. Under the arrangement, RSA will continue to underwrite the products, with Arc Legal providing claims and solicitor management services, product development and actuarial support and ongoing guidance on compliance and regulatory matters.
The World Economic Forum has published work by the Women Political Leaders Global Forum, that has, in cooperation with Kantar, created the ‘Reykjavik Index for Leadership’ to help understand global attitudes to gender equality in leadership roles. The UK tops the list, with the highest rating for equality in the index for leadership for the G7 nations. The Index shows that the G7 divides into two groups of countries. First, a group of four that have higher indices out of 100: the UK (72), France (71), Canada (71), and the US (70).
Cyber risks and the impact of new technologies will have an increasing influence on the corporate loss landscape in years to come. However, it is fire and explosion incidents that cause the largest claims for insurers and the businesses they cover, according to new research from Allianz Global Corporate & Specialty. The vast majority of corporate insurance claims originate from technical or human factors despite natural catastrophes such as hurricanes, having caused devastating losses over the past two years.
As we mark the ten year anniversary of Bitcoin’s launch, there’s no shortage of news and speculation related to the digital currency’s value and potential applications. Articles related to blockchain overwhelming concentrate on an infrastructure underpinning digital currencies used for speculative investments. The reality is far more complex. Blockchain technology’s potential application could disrupt vertical industries as diverse as entertainment, agriculture, and logistics.
Finland-based cyber security company, Arctic Security, has launched its new Arctic Node cyber security tool, designed to help user organisations collect threat intelligence data. The new tool can be directly integrated in the existing cyber security infrastructure that the enterprises have earlier invested in. This includes integrations to security sensors, security information and event management systems (SIEM), incident response platforms and ticketing.
Following the announcement by Shell that it will link executive pay to carbon-reduction, logistics company Maersk and US electric power company Xcel Energy have pledged to cut their carbon emissions to zero by 2050.
Business continuity and IT disaster recovery specialist, Databarracks, has partnered with Rubrik to add cloud data management capabilities to its offering. Databarracks managing director Peter Groucutt commented: “The combination of back-up, disaster recovery and archive in a single, scalable product is exciting and addresses a need we see from mid-market and enterprise organisations.
Sedex has launched a new Supplier Health Check Report that uses a supplier’s site information and audit data to show suppliers how they benchmark against others in their industry or country across labour, health and safety, business ethics and the environment.
The US Department of the Treasury and the Office of the US Trade Representative have announced their intent to sign a UK-US covered agreement. The agreement is an important step in providing regulatory certainty and market continuity as the UK prepares to leave the EU in March 2019, as well as in making US companies more competitive in domestic and foreign markets and making regulations more efficient, effective and appropriately tailored.
The London Market has come a long way on its modernisation journey in the last 12 months but there is still some way to go. We expect that 2019 will likely be the year when organisations across the industry come together to maximise the benefits of innovation and technology. By now, nobody can be in any doubt about the benefits of moving risk more easily through the market. The arrival of the PPL electronic placing platform is improving customer service, increasing efficiency and reducing back office costs. But the ultimate goal of straight-through processing – the sharing of digital data with minimal or no human intervention – requires not only adoption of the individual solutions but also interconnections between policy administration systems and platforms such as PPL.
Specialist insurer Beazley has launched a cyber and breach response portal that provides access to risk management information and risk mitigation tools to its Beazley Breach Response (BBR) policyholders in the UK, France, Spain and Italy. Following the establishment of its US client portal, Beazley’s international breach response team has developed a comprehensive set of training materials, incident response planning and risk assessment tools in English, French, Spanish and Italian.
Mobile operator O2 has restored service across its data networks following an outage lasting for much of the day on Thursday 6 December. The second-largest mobile operator in the UK, O2 has 25 million users and also provides services for the Sky, Tesco, Giffgaff and Lycamobile networks, which have another seven million users.
An inability to keep up with ‘digital-savvy’ competitors is among the top concerns of business leaders around the world according to a survey of senior executives. The study, ‘Executive Perspectives on Top Risks’, found that bosses are concerned about their company’s ability to transform its operations and infrastructure to successfully compete with organisations that are ‘born digital’.
American International Group (AIG) has been hit by an estimated US$750m - US$800m in catastrophe losses so far during Q4 2018, its chief executive officer has revealed. Despite the difficult start to the quarter, the company’s general insurance unit is on track to start 2019 “at a slight underwriting profit,” according to AIG chief executive Brian Duperreault.
The construction industry could see a significant increase in premiums for professional indemnity insurance as a number of insurers scale back capacity or withdraw from the sector altogether. Design and construct (D&C) contractors have benefitted from an abundance of affordable PI insurance for around 15 years, resulting in low premiums and wide coverage.
Research conducted on behalf of payment security firm PCI Pal has found that 41% of UK consumers will never return to a brand or a business following a security breach, representing a significant loss of revenue. In addition, 44% will stop spending with a business or brand for several months in the immediate aftermath of a security breach.
Law firm Clyde & Co has published a report exploring the legal, commercial and liability risks that climate change creates for businesses and their boards. ‘Climate change: a burning issue for businesses and boardrooms’ looks at what is driving the heightened risk environment and how most companies are vulnerable to climate-related risks in some way, even if they are not directly operating in the energy sector or other carbon-intensive parts of the world economy.
Businesses in the construction sector have been warned of a significant year-on-year increase in plant theft which could see the figures for this year hit record levels. Up 55% since 2013, data from Allianz Engineering, Construction & Power shows the business dealt with 428 cases of plant theft in 2013 and the latest figures have increased year-on-year to 665.
Chubb has launched a new service for multinational companies and large middle market businesses which combines its terrorism & political violence underwriting, risk engineering, global security, catastrophe modelling and digital expertise.
The Marriott Hotel Group data breach revealed last week - one of the largest on record - is indicative of the potential exposure that many organisations currently face, experts have warned.
Catastrophe risk modeling firm AIR Worldwide estimates that industry insured losses from the Woolsey Fire in Southern California will be at least US$2.5bn.
As we head into 2019, we believe insurers will need to prepare for potential sexual harassment and discrimination claims. With rising numbers of sexual misconduct allegations and increased awareness of gender pay inequality across all areas of business, media and political life, insurers can expect increased exposure linked to sexual discrimination and harassment claims and class actions throughout the year.
The internet has been transforming how we do business in ways that just 20 years ago would have seemed unimaginable. Necessarily, the field of cyber security has undergone a similarly dramatic change, demanding that organisations continuously embrace new practices and skillsets when it comes to the maintenance of security and regulatory compliance.
Direct Commercial’s DCL Academy has recently enrolled a further 14 apprentices. The Academy, which operates from the company’s head office in Chelmsford, sees apprentices working on a day-to-day basis with its underwriting and claims teams. To support training, the apprentices have access to a purpose-built training suite. Whilst being in full time employment, the apprentices will be working towards the attainment of a Level 3 Insurance Practitioner standard and completion of the Certificate of Insurance.
As business leaders pin their future growth strategies around rising technology spend, so technology risk and cyber risk will rise in 2019. These are two of the key predictions from CNA Hardy’s global 'Risk and Confidence Report', published in November. Three quarters (74%) of business leaders are prioritising technology spend in November 2018, and over a third (37%) of C-suite executives predict spending will rise in 2019. Increasing reliance on technology is based on the belief that it will help businesses to drive efficiency, profitability, innovation and closer customer interaction.
Small charities from across the UK are ‘sleepwalking’ into a risk management crisis, a new report has revealed. 'Under the radar: risk management in small charities', commissioned by PolicyBee from the University of Suffolk, revealed only half of small charities are confident in identifying and tackling risk.
With the National Flood Insurance Programme (NFIP) set to expire on 30th November, the risk management society, RIMS has signed a joint letter with other insurance, real estate and banking organisations, urging Congress to take immediate action to avoid a lapse in the programme.
The Internet of Things has the potential to increase complexity and amplify risk but it could also enable more innovation throughout the entire insurance value chain, including the way claims are settled in future, according to new research from Lloyd’s. IoT will lead to data capture and management at an unprecedented scale, according to the report. This could mean better risk assessment and more flexible, bespoke and real-time products. It may also increase policyholder concerns about the use and accuracy of their data. Interconnectivity can also create new business models where more is known about insureds, policies are generated in real-time and are bespoke, and fraudulent claims are recognised more quickly. The ability to create personalised policies will also enable insurers to more accurately predict and mitigate risks.
In 2018, emerging markets made headlines as foreign investors pulled back from heavily indebted countries like Turkey, Argentina and South Africa. While 2019 is unlikely to experience a full-blown debt crisis, we believe political and trade credit risk will remain in the spotlight in Argentina and Turkey, as well as other key markets, driving increased demand for specialist trade credit insurance. US-China tensions may also create trade distortions and put US companies operating in China at risk.
ClearView has launched a new business continuity training toolkit using virtual reality to create more immersive environments for participants. ClearView VR, developed in partnership with specialist VR company Phygital, brings the benefits of highly engaging and realistic virtual environments for business continuity education, exercising, and awareness raising.
New research reveals that companies that take their insurers to court over non-payment of a claim only win in around one in three cases. The Mactavish research reviewed every UK court case or arbitration appeal relating to payments under primary business insurance policies between 2013 and 2018. Over this period, just 32% of decisions went in the policyholder’s favour, according to the study.
The 21st Annual Business Continuity Awards, celebrating achievement in business continuity, security and resilience, are open for entries. The Business Continuity Awards are the most anticipated event in the business continuity calendar and provides unrivalled networking, alongside a night of entertainment and celebration.
Aon has today announced the availability of its new non-damage business interruption (NDBI) cover designed to protect the income streams of the growing number of companies with high levels of intangible assets. The new NDBI cover can be particularly beneficial to hotels, retailers, pharmaceutical firms and transportation companies. For the hospitality and retails sectors, the product can help firms mitigate the financial impact of lower client footfall following events such as delays or cancellations to transportation.
Chairman of Nissan and chief exec of Renault, Carlos Ghosn, has been arrested in Japan over claims of financial misconduct. The car maker has for the past few months been conducting an internal investigation regarding misconduct involving Ghosn and director Greg Kelly.
Willis Towers Watson has introduced CyFly for Airports, a flexible insurance solution specifically tailored to cover cyber exposures affecting airports around the globe. The new solution provides business interruption arising from outages sustained by third parties upon whose networks airports rely, such as air navigation service providers, hangar operators and maintenance operators; regulatory costs and fines under cyber security legislation (such as the EU Network & Information Systems Directive) rather than just data protection legislation; and broad system failure business interruption extending to any unplanned outages, rather than those arising only from hacks or negligence. It also covers voluntary system shut-downs to mitigate business interruption exposures; claims preparation costs and deemed insurability language, aiding recovery of both data protection (eg. GDPR) and cyber security (eg. NISD) fines.
The Chartered Insurance Institute (CII) has launched an innovative programme reaching out to young people across the UK, with over 1,000 schools to be involved nationally in the new Discover Risk programme. Discover Risk uses interactive games to engage and interact with young people on how risk impacts the decisions we make each day. It has evolved as a formal pro bono programme for the insurance profession, as many professions have formal pro bono programmes which give back to society.
Responding to the text of the draft Brexit agreement reached by the UK and European Union, Christopher Croft, chief executive of the London and International Insurance Brokers’ Association (LIIBA) said that while it is encouraging to see a dedicated section on financial services, he hoped that the fact the draft is solely built around the concept of ‘equivalence’ is for the sake of brevity and simplicity. "Otherwise, those of us who have no equivalence regime have cause for serious concern. As do our clients," he said.
Companies investing in the world’s 100 fastest growing cities will face the highest levels of risk from rising temperatures and increasingly severe weather events brought on by climate change, according to the latest data from global risk analytics company, Verisk Maplecroft. At the other end of the scale, the five cities considered most insulated from the impacts of climate change are all located in the UK.
A specially-convened meeting of the CBI’s most senior policy-making committee has issued a unanimous statement declaring ‘we must not go backwards’ following the publication of the draft Withdrawal Agreement between the UK and EU. It says the agreement has two essential economic benefits which must be achieved: avoiding a no deal cliff edge by delivering transition, and opening a route to a good long-term trade deal.
Responding to the draft Brexit agreement outlined this week, the British Insurance Brokers' Association has welcomed progress towards a transition period but remains concerned over the lack of a solution for UK brokers trading with commercial and retail customers in Europe.
Marsh has announced the formation of Marsh-JLT Specialty, a new specialty business within Marsh that combines the specialty teams of Marsh and Jardine Lloyd Thompson Group, effective upon closing of the transaction. In addition to becoming vice-chairman of Marsh & McLennan Companies and a member of the Marsh & McLennan executive committee, Dominic Burke, currently CEO of JLT Group, will become chairman of Marsh-JLT Specialty. He will continue to be located in London.
Internet connected cameras are an increasingly popular choice for people to want to use CCTV to protect their homes and businesses, because of the benefits they bring. These include remote access to content, automatic alerts when there is suspicious activity and easy sharing of recordings to anyone, from anywhere – for example sharing with the police even when the property owner is in another country.
If you think that slavery is ancient history or at least someone else’s problem, then think again. It is estimated that there are more than 40 million slaves globally, more than a million of them in Europe. Companies operating in the UK with a global turnover in excess of £36m have a legal duty to combat it. Yet, too few firms to date have paid much attention to the Modern Slavery Act 2015 (MSA), even though failure to comply carries a huge potential for reputational damage.
Is this the beginning of the end? This might seem a rather dramatic statement, but bear with me. There are a number of headline topics this could relate to at the moment – from the NHS, social services and the ability to meet the needs of an increasing number of older and vulnerable people to the small matter of global warming, to name a few. But the topic I am referring is that of Theresa May’s recent Conservative Party conference speech and her promise that austerity was over and that “the end is in sight”. Better days are ahead, she promised, adding that, after Brexit the government will boost investment in public services while continuing to reduce debt.
Although many people use apps to check bank balances and make transactions, a large number of financial services customers still receive paper records such as policy documents and statements. Some 5.2bn paper documents were estimated to have been sent by the industry last year alone, according to a study conducted by EY, which suggests just 28% of customers are truly paperless.
Addressing an audience of cyber insurance experts this week, Economic Secretary to the Treasury and City Minister, John Glen, said the UK is perfectly positioned to provide much needed protection against the global cyber threat.
More than 42 people have died and a further 200 are missing as a result of the wildfires in Northern and Southern California. Fanned by powerful Santa Ana winds in the south and Diablo winds in the north, the fire is now the deadliest on record in the state.
At the launch of the 2018 Corporate Human Right Benchmark, Steve Waygood, the chief responsible investment officer at Aviva, made a remark about the audience. It was, he said, now a third composed of representatives of the financial sector – a significantly higher than a year ago. Waygood pondered why the financial sector had suddenly taken such an interest, and pointed to the results of human rights violations upon Bell Pottinger and VW (failure, fines and share price drop).
Pool Re has outlined its plans for its forthcoming non-damage business interruption cover. Once the legislative changes are passed, Pool Re will be able to cover losses caused when businesses cannot operate because of a wide police cordon even though their premises may not be damaged, as happened in London’s Borough Market in June 2017.
Cargo theft on UK roads cost companies around £14 million between the months of April and June, with alcohol and tobacco products the most targeted items. Further analysis from BSI and the National Vehicle Crime Intelligence Service (NaVCIS) cites an average loss of £36,436 per incident, with the highest-value single cargo loss in Q2 cited as £1.13m, when thieves stole a trailer loaded with luxury fashion goods.
The winners of the ninth annual Risk Management Awards were revealed last night at a gala dinner and ceremony attended by 400 people at the De Vere Grand Connaught in London. Skanska came away with two gongs this year, while the coveted Risk Manager trophy was picked up by Wes Cadby of J Murphy and Sons.
Hurricane Michael is estimated to have a financial impact on the US economy of US$15bn, according to Aon's calculations. Storms in Europe meanwhile resulted in economic losses of more than US$3.7bn, with Italy bearing the brunt.
Willis Towers Watson has been working with new insurer Ticker, providing support and advisory ahead of the telematics provider’s early 2019 launch. The start up will use WTW’s Radar pricing software to support pricing and underwriting decision-making.
The Chartered Insurance Institute (CII) has boosted its global team with the appointment of David Thompson as international director. Thompson will be based at the CII’s new Middle East and Africa (MEA) headquarters in Dubai but will also oversee operations from CII offices in Mumbai and Hong Kong.
Cyber attacks and data breaches continue to top the list of challenges for business continuity professionals, according to the BCI’s latest annual Supply Chain Resilience Report. As per last year’s report, uptake of business continuity arrangements continues to grow, with increasing numbers of organisations embedding business continuity to protect supply chains – and that’s despite what it highlights as a declining commitment from senior management…
As 2018 draws to a close, I am pleased to report another fantastic year for the Institute. At the same time, though, there’s more work to be done and we’ve got a plethora of activities taking place in November and December. Our flagship annual conference, Risk Leaders: The Next Generation of Risk Management, is taking place in London on the 15th November where we will have the opportunity to discuss Brexit, artificial intelligence, cyber risk, ethics, GDPR and more. IRM’s Annual Lecture on 6th December will feature a senior member of the Armed Forces talking about strategic geopolitical risk management from a military standpoint. It really does go to show how risk management truly affects every facet of our personal and working lives.
Arch has selected AIR Worldwide’s Touchstone modelling solution to help manage its catastrophe risk. The company will be using a customised suite of tools for detailed loss modelling, incorporating recent enhancements including zone-based analytics, improved management of Touchstone projects and data transfer between companies, an extensive refresh of the user interface.
The number on insurance-related patents filed worldwide jumped 40% last year, to 917 in 2017 (to Dec 31) from 657 in 2016, according to law firm RPC. Pricing and telematics were most in focus as insurers seek to make cost analysis and risk modelling more accurate. Sharp increases were also seen in patents relating to machine learning and P2P.
Cyber insurance and directors and officers’ (D&O) liability insurance have become increasingly interconnected, as company business models increasingly revolve around technology, according to a new Airmic white paper. It points to several high-profile shareholder class actions resulting from cyber incidents, a scenario that puts companies’ D&O policies under the spotlight.
Hot on the heels of Google topping the rankings in the Reputation Institutes’ survey of Millennials, the company has experienced a walk out of staff over sexual harassment claims.
Globally staff are walking out over company's treatment of women, and follows earlier claims and the mishandling of the James Damore case. However, the key events that sparked the protest was the allegation that an executive received a pay-out of US$90m on leaving the company despite claims of sexual misconduct and another executive resigning without investigation after claims of unwanted advances.
Volvo Cars has reached an agreement with Chinese technology firm, Baidu, to develop autonomous cars in China. Under the agreement, Baidu will use its Apollo autonomous driving platform with a view to mass manufacturing fully electric and autonomous cars with the Swedish company. The collaboration with Volvo Cars is the first of its kind in China.
The Financial Conduct Authority has launched a review into how general insurers charge customers for home and motor insurance amid concerns that pricing practices may be discriminating against consumers. The market study is intended to give the FCA a deeper understanding of the scale of any harm to consumers from general insurance pricing practices, who it affects and, if required, what actions are required to improve the market.
Sungard Availability Services has attained the AWS Managed Service Provider (MSP) Partner designation for the delivery of resilient, recoverable IT solutions. The provider was lauded for using proven tooling to support AWS customers, developing a single sign-on (SSO) portal for customer and account management and its strong focus on the continued training of DevOps and cloud division personnel, who currently hold 60 AWS certifications and 544 business and technical accreditations.
Traveller Assist has launched a new insurtech platform that uses blockchain to facilitate payment of medical bills and travel related expenses on behalf of travel and health insurers abroad.
The increasing uptake of augmented reality (AR), virtual reality (VR) and mixed reality (MR) technologies by businesses represents an opportunity for insurers, according to a new report from Lloyd's. In order to stay on top of developments in virtual reality and augmented reality, Lloyd's is urging insurers to immerse themselves in the technology to help them anticipate and react to emerging risks in the virtual world.
London based insurtech company Concirrus has entered a multi-year agreement with Marsh that will see the two companies working together to drive the use of behavioural data in the global marine market. Marsh will adopt the company’s Quest Marine product to help drive new insights and placement strategies as well as identifying new opportunities for digital product development in the marine insurance industry.
JBA Risk Management and Aspen Re have launched a fully probabilistic China catastrophe model for inland flood. The Continental China Flood Model will allow users to disaggregate province-level exposure data to a higher resolution for modelling – a process which provides a realistic view of the spatial location of insured exposure across China.
The Chancellor this afternoon delivered an Autumn Budget with “more treats than tricks” according to the CBI, which welcomed Hammond’s “rock solid” measures for the next financial year. Among the key pledges impacting the profession include an extra £1bn in defence spending to boost cyber capabilities, an additional £500m set aside to prepare for a no-deal Brexit, and an extra £160m for counter-terrorism police.
Aon has collaborated with Guidewire Software on a scenario for a hypothetical attack by hackers on a US hydroelectric dam. In the scenario, a hacker seeks to create disruption by opening the flood gates at a hydroelectric dam. Such a scenario would likely cause significant downstream flood damages, resulting in silent cyber losses for insurers.
Road traffic accident risk increases by over a third after the clocks go back, according to data from Insurethebox. The telematics insurance provider suggests that accident rates among motorists driving between 1700-2000 in the weeks directly following the October clock change increase by as much as 34%.
Retailers and manufacturers are being urged to check their trade credit insurance fits with contingency plans for a potential no-deal Brexit. Risk management consultants at Marsh say some firms are ramping up their inventories in preparation for any delays caused by potential trade restrictions.
Following a number of regulatory changes, training and diversity initiatives across the insurance sector to boost education, training, talent recruitment and diversity, the International Underwriting Association has formed a new London Market group for human resources professionals.
The Information Commissioner’s Office (ICO) has fined Facebook £500,000 for serious breaches of data protection law. In July, the ICO issued a Notice of Intent to fine Facebook as part of a wide ranging investigation into the use of data analytics for political purposes. The ICO’s investigation found that between 2007 and 2014, Facebook processed the personal information of users unfairly by allowing application developers access to their information without sufficiently clear and informed consent, and allowing access even if users had not downloaded the app, but were simply ‘friends’ with people who had.
Law firm Clyde & Co has now received confirmation from the Danish Court that the favourable High Court decision absolving insurer clients of a US$470m claim stands as final and unappealable. The energy construction claim was notified by Norwegian energy company Noreco against a group of international insurers in 2009. Noreco claimed that its all-risk insurance policy should pay for damage to the Siri oil platform in the Danish sector of the North Sea, which forced three fields to shut down.
Responding to the rising number of strikes, riots and instances of civil unrest and terrorism around the world, Marsh has today launched a new standalone insurance solution that provides financial protection for global businesses following any related denial of access to their properties.
Concerns that political and economic conditions might limit export orders in manufacturing over the next three months are at their highest since immediately after the EU Referendum, according to the CBI’s latest quarterly industrial trends report. CBI chief economist, Rain Newton-Smith, said the figures were “sobering” and demanded immediate action at home and abroad.
HawkSight Software has joined forces with PGI to offer users data feed integration capabilities covering geopolitical events, security incidents and business continuity threats.
Working with PGI’s API, the software will display incident data from the last 48 hours each time a user logs in whilst storing older data for recall when required. Incident data can be displayed as a cluster, or heat layer, and may also be charted, with click through capability to enable interrogation of individual incidents in greater detail.
An estimated US$163bn of assets are underinsured globally, according to new research from Lloyd’s and the Centre for Economics and Business Research (CEBR). The average insurance penetration rate in developed nations is twice as high as the average in emerging, or lower income countries, which account for almost all (US$160bn) of the global insurance protection gap.
Mactavish says a lack of understanding of insurance policies among UK boards leaves them at "significant risk" of insurers not paying out on claims. Issuing its stark warning today, the governance and consulting group added that, while the Insurance Act 2015 and the new Corporate Governance Code may have increased the focus on risk at board level, board members and senior directors do not adequately appreciate all of the dangers and threats facing their organisations -- an added factor in the probability of insurers not paying out of claims, it says.
Flood specialist JBA Risk Management has rolled out its high-resolution flood maps and associated pricing data for the continental US, starting with the State of Florida, which is at significant risk of flooding in many parts.
Insured wind and storm surge losses from Hurricane Michael will range from US$6bn to US$10bn, according to estimates from cat risk modelling firm AIR Worldwide. The storm struck near Mexico Beach in the Florida Panhandle on the afternoon of 10th October with maximum sustained winds of 155 mph (250 km/h). Michael was the most powerful hurricane to have come ashore in the Florida Panhandle since the first records were kept in 1851.
London company market premium income has jumped to £26.3bn, according to data from the International Underwriting Association (IUA). It says 2017 GWP was £18.331bn while a further £7.984bn was identified as written in other locations, but overseen and managed by London operations.
Small and medium-sized companies are confident about their prospects over the next five years despite ongoing Brexit uncertainty, new research from MetLife UK shows. The survey of companies employing between 50 and 300 staff – which make up around 34,000 businesses in the UK with an annual turnover of £541bn and employing 3.3m people -- found 76% are optimistic about their business prospects for the next five years, with more than a quarter (28%) saying they are very optimistic.
Ecclesiastical has joined forces with the Charity Finance Group to urge the Chancellor to make charities exempt from paying Insurance Premium Tax (IPT). The two organisations have been campaigning together to raise awareness of the impact of the continuing IPT increases on charities.
Some jobs are more risky than others. Individuals working in the emergency services, security, heavy industry or health and social care are clearly at greater risk of encountering psychological trauma due to the nature of their occupation. At the same time, though, very few in other, less obviously risky roles are completely immune to difficult or distressing events such as assaults on staff, serious accidents or injuries, robberies, or even the death or suicide of colleagues.
Storm surge warnings are in place in Florida following the arrival of the third-strongest storm in recorded history to hit mainland US. Hurricane Michael made landfall Wednesday afternoon as a cat 4 storm before being downgraded to a tropical storm as it weakened over Georgia. Two people have been killed.
The Financial Conduct Authority has set out its proposals in the event the UK leaves the European Union on 29th March 2019 without an implementation period. It has also set out its approach to the regulation of credit ratings agencies, trade repositories and data reporting services providers.
Demand for sustainability, good corporate behaviour and rapid digitisation are leading to profound changes in organisations and in the work of risk managers, according to the Federation of European Risk Management Associations. Whilst acknowledging the challenges, FERMA says this represents a huge opportunity for risk managers. “The risk manager can be a co-pilot for the board and top management in this transformation,” says president of FERMA, Jo Willaert.
Responding to the relaunch of the Association of British Insurers’ #IPTsUnfair campaign ahead of the Autumn Budget, Federation of Small Businesses (FSB) chairman Mike Cherry said the Insurance Premium Tax deters small firms from making the right choices.
The Chancellor is being urged not to further penalise responsible insurance customers in this month’s Budget. The Association of British Insurers (ABI) launching a sequel to its #IPTsUnfair campaign, which presses the government not to increase Insurance Premium Tax any further by demonstrating the absurdity of punishing people who are doing the right thing.
Allianz Global Corporate & Specialty (AGCS) is reshaping its Alternative Risk Transfer business into two new specialist teams. From next month, the Insurance-Linked Markets team becomes a standalone line of business known as Capital Solutions, led by current ART CUO Richard Boyd.
In its pre-Budget letter to the chancellor, business group the CBI has focused on three key areas it says are key to unlocking growth: reforming business rates to ensure firms can invest and grow, building on recent announcements to make the apprenticeship levy work; and improving capital allowances to drive investment – particularly in digital and low carbon technologies.
Driverless ships and aviation drones face fewer barriers to adoption than driverless cars, according to a survey among underwriting professionals, who express concern about a lack of associated infrastructures for autonomous modes of transport, as well as cost, technological capability, public perception and regulation.
Shred-It has released a new online tool designed to support businesses with GDPR compliance. The new GDPR Manager aims to help with accountability and compliance by guiding users through a six-step process from initial assessment to an ongoing action plan.
VisionTrack has launched a new monitored behaviour and First Notification of Loss service designed to aid prevention and to increase claims efficiency in the event of an incident. VT24/7 is the latest in a series of developments in the space, as in-vehicle technology becomes increasingly sophisticated.
Regulators are taking a tougher stance on ESG disclosure, according to a new report compiled by risk management software provider, Datamaran. In the last three years alone environmental, social and governance (ESG)-related regulations grew by over 100% across the UK, the US and Canada, indicating that the ESG regulatory landscape is picking up pace. The majority of sector-specific regulations published after 2015 are mandatory.
Workers in the UK believe that robots and automation more generally will deliver more interesting and creative jobs for future generations, but lack a full understanding of the technology’s capabilities, according to a report from robotic process automation provider, UiPath.
Willis Towers Watson has announced the launch of the Airport Risk Community (ARC), an initiative aimed at highlighting and tackling common industry risks. ARC’s purpose is to connect groups of professionals around the world, to share knowledge and insight by hosting events and to analyse data, and help the industry understand and take action on emerging risks and trends.
Following the government's announcement this week that the use of combustible cladding is to be banned on all new residential buildings above 18 metres, as well as schools, care homes, student accommodation and hospitals, FM Global has warned that this measure alone does not mean buildings are fire risk-free.
Arc Legal has launched a dedicated personal cyber assistance product for Saga, offering cover and support in the event of a cyber attack on a policyholder’s personal device.
The policy provides crisis response and incident management cover, offering immediate assistance following a cyber attack; as well as restoration cover to reinstate customer devices to their original state.
The Chartered Insurance Institute is opening a new office to cover the Middle East and Africa. The CII already has established links with the regulators and financial companies based in UAE and it is hoped that this new hub will help serve the region more effectively.
The CII has appointed Gaenor Jones as regional director, MEA, CII and Personal Finance Society.
The Financial Conduct Authority (FCA) has fined Tesco Bank £16.4m for failing to exercise due skill, care and diligence in protecting its personal current account holders against a cyber attack that took place in November 2016. Cyber attackers exploited deficiencies in Tesco Bank’s design of its debit card, its financial crime controls and in its Financial Crime Operations Team to carry out the attack.
The impact of on wholesale brokers in the London insurance market of today’s Insurance Distribution Directive implementation deadline of the will be manageable, according to the London and International Insurance Brokers’ Association (LIIBA).
Ongoing and, in some areas, increasing geopolitical concerns are causing a rise in political risk exposures with 55% of global organisations with revenues greater than US$1bn experiencing at least one political risk loss exceeding US$100m in value. This is according to figures from Willis Towers Watson, whose annual Political Risk Report, carried out with Oxford Analytica, highlights Turkey and Argentina as particular areas of concern.
Hiscox has today launched its new Influencer and Public Figure Protection insurance, covering the risks faced by influencers and high-profile individuals leading their lives in the public eye. It is thought to be the only such cover in the UK currently offering a tailor-made policy for influencers and public figures including breach of promotional contract.
The Information Commissioner’s Office has begun formal enforcement action against 34 organisations that have failed to pay the new data protection fee. The regulator has sent notices of its intent to fine the organisations unless they pay. Those that don’t could face a maximum fine of £4,350.
The government has today published its updated guidance on the future of intellectual property (IP) laws following the UK’s departure in March 2019 of the European Union. It says that while a scenario in which the UK leaves the EU without an agreement is “highly unlikely”, its series of technical notices will help businesses make informed plans and preparations in the event of a no-deal Brexit.
The Insurance Institute of London today announced that Nicolas Aubert, head of Great Britain for Willis Towers Watson, has been elected as the organisation’s new president. Having served first as a vice-president and then as deputy president for the past year, Aubert replaces Lighthouse Group’s Roger Sanders.
With measures to slash greenhouse gas emissions set to miss their mark, businesses should be preparing for the risks related to a changing climate, according to a report by Zurich Insurance Group. Published at the start of Climate Week NYC, a gathering of investors, governors and CEOs in New York, it recommends a three-step strategy to help companies strengthen their defences.
Lloyd’s has today announced a profit of £0.6bn for the first half of 2018. The market’s return to profit follows the severe catastrophe experience in 2017. Its interim report detailed a combined ratio of 95.5%, annualised return on capital of 4.3%, investment return of 0.3% and net resources of £29.0bn. The reporting period also featured an improvement in the underwriting result up to £0.5bn from £0.4bn last year.
Equifax has been fined the maximum £500,000 penalty for its breach last year which exposed data belonging to 146 million people around the world, including 15 million in the UK. The ICO investigation found that, although the information systems in the US were compromised, Equifax Ltd was responsible for the personal information of its UK customers. The UK arm of the company failed to take appropriate steps to ensure its American parent Equifax Inc, which was processing the data on its behalf, was protecting the information.
RSA has extended its suite of products to include cyber solutions for large and multinational businesses. An evolution of its existing cyber product for SMEs, the new solution been designed to provide comprehensive cover, assistance with risk assessment, and provision and management of post event support.
AIR Worldwide estimates that, to date, industry insured losses resulting from Hurricane Florence’s winds and storm surge will range from US$1.7bn to US$ 4.6bn. “Hurricane Florence, once a Category 4 storm, made landfall near Wrightsville Beach, North Carolina, at about 0715 on Friday, as a Category 1 storm with 90 mph winds,” said Dr. Peter Sousounis, vice-president and director or meteorology, AIR Worldwide. “As Florence approached the East Coast, it grew in size and exhibited multiple wind maxima, which are found in storms with abnormally low central pressure for a given maximum wind speed. As a consequence, strong winds extended well north of the landfall location up to the Outer Banks and into Pamlico Sound, which caused a high storm surge in this area.”
The UK’s small and medium-sized business have put GDPR compliance and cyber risk management ahead of any Brexit-related planning, according to a study conducted by Zurich. Almost a quarter (24%) of respondents to Zurich’s latest broker survey said that their SME clients now ask them about GDPR on a regular basis whereas regular enquiries about Brexit were recorded by just one in ten (10%) brokers; and over a third (35%) said that their clients never asked about the UK’s exit from the EU at all.
Marsh & McLennan is to acquire Jardine Lloyd Thompson Group. Under the terms of the transaction, holders of JLT’s common shares will receive cash consideration of £19.15 pounds per share. Total cash consideration equates to US$5.6b in fully diluted equity value, or an estimated enterprise value of US$6.4bn. The transaction will be funded by a combination of cash on hand and proceeds from debt financing.
The IRM is pleased to see that the new Financial Reporting Council (FRC) Corporate Governance Code places greater focus on risk. This includes an explicit mention in Section 1 ‘Board Leadership and Company Purpose’ – as recommended in the response IRM submitted to the FRC earlier in 2018.
Every risk manager measures conduct risk with more than half an eye on the regulator, and for good reason. However, regulators do not always have the last word in how their rules are interpreted; they are accountable to politicians, and politicians are accountable to the public.
What is the point of corporate insurance? Until recently that would have seemed a strange question. However, against a backdrop of disruption to business models, a shift from tangible to intangible assets and associated changes to risk profiles, businesses are seeking new insurance solutions and services appropriate to the digital age.
It will soon be ten years since David Cameron declared that the “age of irresponsibility is giving way to the age of austerity”. The austerity programme was initiated in 2010, since which time organisations delivering vital services to communities have faced tough challenges and difficult decisions. At the same time, it has also led them to embrace the risks posed by large funding cuts and to take forward some ambitious change programmes.
New research from the CBI demonstrates just how much consumers value information security today. The way companies treat personal data is the top concern for potential customers and business partners, with almost 9 out of 10 people identifying good data security and the protection of personal information as the key characteristic they look for when deciding where to spend.
AXA has today completed the acquisition of XL Group. The completion of the transaction follows the fulfillment of customary closing conditions, including approval by XL Group shareholders and obtention of regulatory approvals.
The government’s income from Insurance Premium Tax increased to £6bn for the year ending July 2018, up 22% on £4.88bn collected the previous year – a far bigger impact on businesses and consumers than had been predicted by the government, according to accountants UHY Hacker Young.
The Chartered Institute of Internal Auditors has called for tougher governance of large private companies, which, it says should have comparable corporate governance standards to publicly-listed entities. In its response to the Financial Reporting Council's consultation on The Wates Corporate Governance Principles for Large Private Companies, the audit watchdog urged the regulator to strengthen its proposed principles for large private companies – which is essentially a corporate governance code covering these specific businesses – by more closely mirroring measures contained within the UK Corporate Governance Code for public listed firms, coupled with a call for the regulator to take charge of monitoring the application of the principles.
AIR Worldwide estimates that industry insured losses from Typhoo Jebi, which made landfall in Japan on 4th September, will be between JPY257bn (US$2.3bn) and JPY502bn (US$4.5bn). The strongest typhoon to make landfall in Japan in 25 years, it struck as a cat 3 hurricane with 1-minute sustained wind speeds of 180 km/h (112 mph) before making a second landfall on the main island of Honshu striking the major urban centres of Kobe and Osaka with winds which, flipped vehicles, ripped cladding off buildings and downed trees and power lines. Jebi later intensified to become a super typhoon with wind gusts of over 190 mph, the equivalent of a cat 5 hurricane.
Aon is launching a new silent cyber reinsurance solution to protect insurance carriers' portfolios from exposure to these non-affirmative perils across multiple lines of business. The solution is designed to help insurers identify their silent cyber exposures through wording and threat analysis; and to quantify their exposures using bespoke scenarios. Modelling is provided by Guidewire's Cyence Risk Analytics.
Large insurers have stepped up preparations for IFRS 17 and 9, while smaller insurers have fallen further behind, according to new from KPMG International, which says 57% of of the large insurers (with premiums over US$10bn) it surveyed are in the design or implementation phase for IFRS 17, with almost as many, 64%, in a similar place with respect to IFRS 9. By comparison, among smaller insurers (with premiums under US$1bn), only 10% and 25% have started design or implementation for IFRS 17 and IFRS 9, respectively.
British Airways has reported a data breach that involves the access of customer names, email addresses and credit card information. The company suspects the breach was a result of criminal activity, and the National Cyber Security Centre is advising those who have used the BA website or mobile application to purchase services while the data was at risk (21st Aug-5th September) to contact their banks, ensure passwords are secure or change them, and also monitor financial accounts for any suspicious transactions.
AIR Worldwide and Capsicum Re are to develop a silent cyber modelling capability, whereby the two firms will identify which non-cyber lines of business and industries are more likely to be exposed to silent cyber-related losses.
The government has updated its guidance for the establishment and maintenance of resilience within critical national telecommunications networks and services. Last published in February 2011, and updated this week, the EC-RRG Resilience Guidelines bring together a wide range of advice and guidance on agreed best practice in the establishment and maintenance of resilience within telecommunications networks and services for communications providers considered to be part of the UK’s Critical National Infrastructure either because of the scale of their operations, or because they provide key services to other parts of the CNI.
High-profile failures, such as the recent collapse of Carillion, have contributed to a decline in public confidence in businesses. This is according to a CBI / Porter Novelli survey, which notes a 9% fall in confidence since the previous survey in October 2017. Business reputation declined in 10 out of the 12 regions in the UK, it said.
Risk reviews conducted by the Information Commissioners Office have revealed ‘areas of concern’ among eight different charities. The ICO conducted the risk reviews for a random eight charities after its enforcement against 13 charities in the period between December 2016 and April 2016.
Research by the Chartered Institute of Internal Auditors that has found cybersecurity has, perhaps unsurprisingly, been identified the number one risk facing organisations across the private and public sectors. The findings come from a survey of over 300 internal audit chiefs across Europe.
Retail sales grew at an above-average pace in the year to August, according to the latest CBI Quarterly Distributive Trades Survey. In a survey of 112 firms, yearly retail sales volumes growth accelerated to a pace above the long-run average.
Canopius has signed a partnership with credit and political risk MGA, Anvil Underwriting, which will allow Anvil to underwrite credit insurance, contract frustration and political risks on behalf of Canopius.
Agricultural insurance specialist Lycetts has invested in an advanced forensic coding system to help clients protect farm equipment and premises. Lycetts DNA+ combines an adhesive solution with uniquely coded micro particles registered exclusively to each client. This system provides irrefutable, traceable evidence of ownership and has been proven by the police to be a powerful deterrent to thieves.
The Institute of Risk Management and Solvay Brussels School of Economics & Management have launched a new enterprise risk management qualification. Participants of the first, two-day module will receive the IRM’s Risk Management Essentials certificate. Those that complete all five modules will receive an additional Executive Programme in Enterprise Risk Management certificate issued by Solvay Executive Education.
Willis Towers Watson and AXIS have launched a professional indemnity insurance solution with a £10 million primary limit for 11+ partner law firms. The cover extends beyond that outlined under the SRA Minimum Terms and Conditions.
The current head of international operations at Navigators Underwriting is to become the next CEO of LMA, following the announcement that David Gittings will be stepping down at the end of the year after 12 years in the role.
New research into the data habits of the UK SMEs suggests that many British companies are finding it hard to store and manage their company’s data effectively. The findings suggest many smaller organisations are still relying on USB drives as their primary data storage solution.
The number of UK firms with cybersecurity insurance has risen in the past year — but less than half say their cyber insurance covers all risks, according to a survey from research firm Ovum.
The Construction Industry Council (CIC) has launched a second survey to gauge the impact of last year’s Grenfell fire tragedy on insurance cover for the construction sector.
Fears over Brexit appear to be increasing businesses’ perception of the risks in their supply chain, despite evidence suggesting that many have taken steps to ready themselves for a post-Brexit environment, according to a new report.
Reputation events such as cyber attacks have a direct impact on share price, according to the findings of a new report by Pentland Analytics and Aon. The 2018 Reputation Risk in the Cyber Age study looked at 125 reputation events during the last decade, measuring the impact on shareholder value over the course of the following year.
Cloud computing ranks as the top risk concern for executives in risk, audit, finance and compliance, according to a new survey by Gartner. While cloud computing presents organisations with novel opportunities, a number of new risks make cloud solutions susceptible to additional security threats.
Manufacturing output growth eased in the three months to August, according to the latest monthly CBI Industrial Trends Survey. The survey of 379 manufacturers revealed that output growth slowed slightly during this period but remained well above the long-term average.
The Environment Agency has launched a campaign to help businesses prepare for flooding. The agency’s flood resilience community engagement officers for the North-East have been in touch with more than 700 business there to raise awareness. Since 1998 there has been at least one serious flood a year with businesses more likely to be destroyed by flood than by fire.
Global economic losses from natural catastrophes and man-made disasters in the first half of 2018 totalled US$36bn -- well below the ten-year average of US$125bn in economic losses and significantly lower than the losses reported for the same period a year earlier.
REG has won a tender to provide on demand due diligence and agency management for Arc Legal. The specialist legal expenses provider will use the REG Network to decrease the time taken to onboard new customers and to increase the frequency and detail of its current oversight processes.
The Charity Commission is urging charities to put preventative measures in place to avoid falling victim to insider fraud. The regulator’s warning comes after the National Fraud Intelligence Bureau (NFIB) released a national alert highlighting the insider threat from fraudsters and cyber criminals. NFIB’s alert revealed that over 50 per cent of organisations have suffered an insider threat attack in the previous year and 90 per cent of businesses feel vulnerable to a cyber attack from within their own organisation. The Charity Commission points out that charities are just as vulnerable to insider threats as the private or public sector.
The Competition and Markets Authority (CMA) has launched an investigation into concerns that social media influencers are not properly declaring when they have been paid, or otherwise rewarded, to endorse goods or services. Typically, celebrities and influencers have millions of followers who watch their channels to see where they go on holiday, what they wear and which products they use. Online endorsements from celebrities and influencers can help brands reach target audiences and boost sales. Where influencers are paid or rewarded to promote, review or talk about a product in their social media feeds, consumer protection law requires that this must be made clear.
Sungard Availability Services has bolstered its recovery services in Ireland. The expansion sees Sungard AS’ existing workplace recovery capability grow to 80 end-user positions on a shared basis, with additional space available for customers looking for a dedicated solution. Capacity for a further 100 shared positions is also available to meet demand.
BSI has published the revised international standard for auditing management systems, BS EN ISO 19011:2018. The document provides comprehensive guidance on both internal and external audits, covering a range of topics from the management of an audit programme to the planning and conducting of audits, and the competence of audit teams.
New research reveals a growing acknowledgement amongst insurance brokers of the importance of contributing positively to society, with charitable giving the most popular way of achieving this goal. The study, conducted by specialist insurer Ecclesiastical, suggests that, for the first time, UK brokers are making a significant contribution to their communities, responding to a growing consumer demand for a more responsible approach to business.
A number of people have been injured following an incident in Westminster this morning in which a car crashed into barriers outside the Houses of Parliament. Armed police arrived quickly and arrested the male driver of the car following the collision which occurred at 0737.
The shortlist for the 2018 Risk Management Awards has been published. This year's winners will be announced at a black tie gala dinner and ceremony on 8th November at De Vere Grand Connaught Hotel in Covent Garden, London. Now in their ninth 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.
The 2019 Commercial Insurance Awards are now open for entries! Now in their sixth 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.
Global commercial insurance prices rose, on average, for the third consecutive quarter, according to Marsh’s Global Insurance Market Index for the second quarter of 2018.
The increase was largely driven by insurance pricing for property lines, which continued to be affected by 2017 catastrophe losses, and by increases in financial and professional lines.
A second Brexit contract continuity clause has been issued by the International Underwriting Association, following its publication last month of a policy clause to help companies manage insurance contracts as the UK leaves the European Union. This latest publication features a supporting document for when risks are underwritten on a subscription market basis.
The British Insurance Brokers’ Association and Tokio Marine Kiln have launched a new drone insurance offering coverage for companies operating commercial UAS. Through the Lloyd's-backed scheme, BIBA members benefit from special terms and coverage for physical loss of or damage to UAS up to a limit of £100,000 per UAS (inclusive of payloads) whilst in the air, on the ground or in transit, including theft and malicious damage (larger limits available on request); and third party bodily injury and property damage liability – inclusive of losses arising from malicious acts up to a limit of £50M each occurrence, with larger limits available on an arranged basis.
While much of Europe remains gripped by a heatwave, it is still the region most insulated from the economic impacts of rising heat stress. This is according to analysts at Verisk Maplecroft, which identifies Africa and South East Asia as most likely to bear the economic brunt of rising temperatures as intensifying levels of heat stress are projected to cut worker productivity and hit export revenues over the next 30 years.
The Chartered Insurance Institute is looking for industry professionals to join its flagship talent programme: the New Generation Group. The 2018/19 class will be made up of 40 professionals from claims, underwriting, broking and the London Market.
The Financial Conduct Authority is to consult on rules and guidance to improve conduct standards and communications in the payment services and e-money sectors. The Consultation Paper proposes to extend the application of the Principles for Businesses and certain specific rules about promotions and communications so that they cover wider categories of businesses that it regulates (including businesses authorised or registered under the Payment Services Regulations or the Electronic Money Regulations).
Merger and acquisition activity in the insurance industry rose in the first half of 2018 with 186 completed deals worldwide, up from 180 in the second half of 2017, according to Clyde & Co’s 'Insurance Growth Report', released today. This marks the second consecutive six-month period of modest increases in the volume of transactions since the low point in H1 2017 that followed two years of steady decline.
According to the London Credit Consortium – a partnership of Liberty Specialty Markets, Canopius and The Channel Syndicate which provides capacity to the platform – Toredo was used for its first risk in June and now has a developing pipeline of transactions.
The average fine per prosecution brought by the Environment Agency against companies has increased six-fold in the last five years, according to research from global law firm Clyde & Co. Data obtained directly from the EA show that the average fine against a company in 2017/18 was £147,575, compared with £23,731 in 2013/14. While the number of prosecutions against companies has reduced to almost a quarter of where it stood five years ago (from 114 in 2013/14 to 32 in 2017/18), the average value of a fine has significantly increased.
Farmers are to be allowed to trade water allowances as part of Environment Agency efforts to support farms dealing with the pressures of the ongoing hot, dry weather. Following the driest June since 1925 and a dry July, farmers have reported water supply concerns which could affect the irrigation of crops and welfare of livestock. As the National Farmers Union’s drought summit took place, EA issued guidance to farmers detailing options to flex abstraction licences in serious cases, and on a short-term basis.
Since 25th May, the EU’s General Data Protection Regulation (GDPR) now applies directly to the UK and will be incorporated into UK law by the Data Protection Bill. There have been a number of reported cases involving data breaches within local authorities due to employee actions. All of these led to fines for the offending authorities, but also had significant reputational impact.
The terrorist attacks that took place in 2017 have led to a lower tolerance for risk within counter-terrorism investigations, which could result in earlier plot disruptions, leading to weaker evidential yields which would not be enough to convict suspects of the more serious terrorist offences which attract longer jail terms. This, in turn, would lead to quicker release from prison; and thus, the cycle of conviction, sentencing and imprisonment would be shortened, so amplifying the terrorism threat to business and people in the UK.
Sexual exploitation and abuse among the charity sector has been ongoing for a 'long time' and the sector is guilty of being almost 'complicit' in the scandal, a scathing report by MPs has revealed. The report, published by the International Development Committee today, explores the scale of sexual abuse among the aid sector following a wave of media reports that shed light on the issue earlier this year.
The UK government has enacted legislation to help achieve safer flying across the country. The new laws, which will restrict drones from flying above 400 feet or within one kilometre of airport boundaries, come into effect today, 30th July 2018. Following a year-on-year increase in the report of drone incidents with aircraft – with 93 in 2017 - these measures will reduce the possibility of damage to windows and engines of planes and helicopters.
Research conducted by Atradius reveals major shifts in the landscape of the global ICT sector, driven by advancing technologies and changing market conditions. In an environment of continuing uncertainty fuelled by ongoing Brexit discussions, interest rate increases, currency fluctuations and international trade disputes, ICT companies also face increasing pressure to improve time to market and to ensure that their offerings are best in class and include evolving technologies.
According to the London Credit Consortium – a partnership of Liberty Specialty Markets, Canopius and The Channel Syndicate which provides capacity to the platform – Toredo was used for its first risk in June and now has a developing pipeline of transactions.
Failure to capture and disclose key workforce data is keeping investors, employees and other parties in the dark on key business indicators. So says professional HR body, CIPD, which is calling for improved reporting and transparency from Britain’s biggest businesses. Research recently carried out by the organisation shows the degree to which workforce reporting has changed over the last five years and explores how transparent organisations are being about risks and opportunities relating to the workforce.
Brexit is the greatest structural challenge facing the London company market, according to International Underwriting Association chairman, Malcolm Newman. Addressing members as its annual general meeting today, Newman said that the UK’s break from the EU affected insurers, brokers and clients in varying ways, but that none felt as informed as they might expect to be.
Dawning awareness of the scale and severity of financial risks posed by artificial intelligence (AI) means that, in the next few years, London market underwriters will need to review their policies in a search for hidden AI exposure. So say experts at law firm Clyde & Co, which has issued a warning over policies containing hidden AI.
Already Allianz, AXA, Generali and SCOR have made the move, and the decision will have a considerable impact on German energy companies, with Germany having demonstrated a reluctance to give up on coal. In particular, RWE will be affected, having been a major investment for eight major European insurance companies. Following the moves now only two now remain - BNP Paribas and Munich Re.
With the market for cyber insurance developing continually, the International Underwriting Association is urging companies to scrutinise contract wording carefully before deciding on cover. In the new report from the association's Cyber Underwriting Group, companies are warned that not all triggers are included in every policy and that it is important, therefore, to perform an effective risk assessment before considering coverage options.
In its submission, FERMA acknowledged the time lag before the benefits of investing in non-financial matters become apparent following the initial short-term financial costs. It says that corporate risk management methodology, especially enterprise risk management, can mitigate the costs, because it is a pre-condition of ERM to identify the organisation’s principal risks, including those connected with good corporate citizenship, and consider how they can be mitigated.
Each year over US$3trn is laundered by criminals on a global scale, threatening the legality of everyday business outcomes. Money laundering is a risk to any organisation engaging in international trade, and it has become a growth industry in recent years – thanks in part to the internet. As a result, more industries and professional services have become subject to anti-money laundering (AML) regulation.
NTT Data UK has entered into a partnership to provide robotics services to Tokio Marine Kiln. NTT Data’s Cargo 10 Virtual Worker is the first of several planned Robotic Process Automation (RPA) initiatives at TMK. The service helps to automate marine transactions to deliver improved operational efficiencies and data quality – the end goal faster transactions, fewer errors and the ability to process transactions out of office hours.
RMS has released version 4.2 of the RMS Probabilistic Terrorism Model (PTM) and the update in RiskLink Version 18 of the RMS Terrorism Scenario Model (TSM). The update to the Terrorism Target Database includes the addition of new targets to reflect the construction of new, high-profile, urban properties as well as the removal of targets that no longer meet the criteria for target selection. There are also refinements in the latitude and longitude coordinates of key attack points.
As we hit the balmy summer, the Institute is by no means slowing down. We’ve launched our new joint training course for infrastructure risk with Turner and Townsend and are readying ourselves for the official launch of the new Certificate in Digital Risk Management. We have also published our first Asia-Pacific newsletter with the help of our growing Global Ambassador network, which now spans the Asia-Pacific and Oceania regions, India, the countries of South East Asia, China, Japan, Australia and New Zealand.
More than 550,000 new start-up businesses were established each month during 2016, of which FinTechs and InsurTechs accounted for 30,000. InsurTech start-ups alone have received US$20bn of investment since 2004. Some 33% of those funded between 2013 and 2015 had a focus on internal insurance processes; 61% by 2016.
At a recent conference on insurance regulation, the mood about the new world of Solvency II was decidedly downbeat. The feeling was that too many cooks were spoiling the broth. From the more prescriptive elements of the EU legislation to the layers of justification needed for any approach that deviates from convention, regulation was portrayed as a significant brake on innovation and the exercise of common sense.
The Chartered Insurance Institute is calling on employers to take action in reducing the sector’s pay gap. The CII has analysed all 192 insurers, intermediaries, service providers, financial advisors and loss adjusters in the UK who have published pay gap data, and identified an average gender pay gap of 24%.
The Financial Reporting Council has released the long-awaited 2018 UK Corporate Governance Code. The new, shorter code emphasises the importance of building trust in business by forging strong relationships with stakeholders; and calls for companies to establish a corporate culture that is aligned with the company purpose and business strategy, promotes integrity and values diversity.
Several days of record-breaking rainfall have led to widespread inland flooding in 11 prefectures across western and central Japan. The precipitation was described by an official at the Japan Meteorological Agency (JMA) as being at a level never before experienced. As well as numerous rivers and streams bursting their banks, many landslides have been reported. In addition to major damage to buildings and infrastructure there has been considerable business interruption. At least 180 lives have been lost, and dozens are unaccounted for, according to data issued on July 12 from the Fire and Disaster Management Agency (FDMA).
A report from Capgemini’s Digital Transformation Institute suggests that the financial services industry could expect to add up to US$512bn to global revenues by 2020 through intelligent automation, the right combination of robotics process automation (RPA), artificial intelligence (AI) and business process optimisation.
As reported by CIR, Airmic recently published the main findings of an in-depth report by Cass Business School into the implications of the fourth industrial revolution for business models and risk management. ‘Roads to Revolution’ found that existing principles of resilience need to be extended for opportunities to be realised and resulting risks managed. One important aspect is that of governance. In most large organisations, cyber governance has failed to reflect technology-driven changes in the way that companies are run.
Job losses in South East Asia resulting from automation are predicted to produce a spike in slavery and labour abuses in global supply chains unless governments take early measures to prevent automation threatening millions of livelihoods, according to a report published this week
A new survey on the state of internal audit finds auditors focused on delivering timely insights on key risks, aligning audit planning with business strategy, and improving audit processes and operational effectiveness. MetricStream’s research evaluated 600 organisations from 15 industries across the globe to understand internal audit management challenges, priorities, programme structures, and technologies used.
JLT Re has entered into a partnership with cyber risk modelling platform, CyberCube, whereby JLT Re’s existing cyber and enterprise modelling tools will be combined with CyberCube to help clients manage and measure cyber risk and exposure.
Business continuity transport and accommodation solution provider, CMAC, has acquired managed taxi specialist Cabfind from Transdev. The acquisition expands CMAC’s ground transport offer, establishing the largest available network of private hire, executive vehicles and coaches in the UK servicing wide range of industries including rail, airline, travel management and professional services.
Tokio Marine Kiln has bought the remaining 51% share in WNC Holdings – a managing general underwriter providing specialty risk management solutions including private flood, builders’ risk and lender-placed products. It expects approximately US$200m of net written premium in 2018.
Construction and engineering MGA and Lloyd’s coverholder, Ensurance UK, has launched engineering inspection and insurance cover through a strategic partnership with British Engineering Services.
DAS UK has launched a new suite of commercial products, available from today on its new quote and buy web portal, DAS Connect. Designed to suit a range of businesses looking for legal expenses insurance cover for employment disputes, property protection, personal injury, legal defence and tax protection, the products also provide access to a wide range of legal services and helplines that can be used as often as required including legal advice, tax advice, and counselling.
Travelers Europe has launched its new standalone cyber insurance product for the United Kingdom and Ireland. Travelers CyberRisk provides liability and first-party cover for losses from cyber attacks. It also provides access to assistance that can help limit client exposures to cyber events, including breach coaches, forensic investigators, public relations support and credit monitoring services.
Global insurance standards body ACORD has released the industry’s first standard for cyber breaches. Developed with Aon and Beazley, the standard is intended to help address the market's need to evolve with the growing threat of cyber risk.
A group of more than 100 institutional investors, managing over US$12trn of assets, are asking companies to fully disclose how they manage their global workforce. The investor group features institutions in 11 countries including Schroders, UBS, Amundi, HSBC Asset Management, AXA Investment Managers, Legal and General IM, Nordea, Rockefeller & Co and AustralianSuper.
Global insurance premiums continued to rise in 2017 with emerging markets leading the way, according to the latest figures from Swiss Re. Premiums increased 1.5% in real terms to nearly US$5trn in 2017, after rising 2.2% in 2016. Non-life premiums rose 2.8%; life by 0.5%, representing slowed growth across both, and with falling life premiums in advanced markets such as the US and Western Europe were the main cause of drag.
The Bank of England, Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) have today published a joint discussion paper on an approach to improve the operational resilience of firms and financial market infrastructures. The tripartite group is looking for better standards of operational resilience through increased focus on setting, monitoring and testing specific impact tolerances for key business services, which define the amount of disruption that could be tolerated.
Zurich has announced the extension of its Flood Resilience Alliance for another five years to 2023. Since 2013, the multi-sector alliance of NGOs, academics and Zurich’s risk management experts has focused on shifting from the traditional emphasis on post-event recovery to stress pre-event resilience.
A group of insurers, industry bodies and brokers have joined forces to launch a new industry-wide programme designed to change behaviours and create “a more inclusive work environment” across the sector. Led by Lloyd’s and Zurich, the Inclusive Behaviours Pledge has attracted the support over 50 firms, demonstrating a commitment to transforming its culture and to driving greater inclusion across the profession.
Tokio Marine Kiln has established a US$100m intellectual property facility with Aon, as well as several other Lloyd’s syndicates. It will be led by TMK and is one of the first for IP in the London Market, providing greater capacity for larger IP risks. The new facility will offer tailored cover for businesses of all sizes, from SMEs to large corporates and will help protect against a wide range of infringement liability risks, initially in the US, the UK and Europe.
Liberty Specialty Markets has rebranded its reinsurance division as Liberty Mutual Re and has simultaneously launched its first reinsurance operation in Italy. The rebrand encompasses all aspects of LSM’s reinsurance division – some 180 people in 14 locations.
Siemens Building Technologies is to acquire digital workplace app provider, Building Robotics. Founded in 2012, the company develops software solutions for building operators and occupants. Its core product, workplace app Comfy, integrates with existing building automation, IT networks and IoT systems to provide on- demand control and smart automation within a single intuitive app.
Solid underwriting profits have been reported by the UK motor insurance market, with EY’s Annual UK Motor Insurance Results pointing to a net combined ratio for 2017 of 96.8%. This is the best result since 1994 and the second best since records began -- and is in stark contrast to the disappointing 109.4% NCR reported in 2016.
Cass Business School has conducted a large-scale research study which uncovers different protection gap entities around the world. The report, ‘Between State and Market: Protection Gap Entities and Catastrophic Risk’, was led by Professor Paula Jarzabkowski and looks at both developed and developing economies, to explain their role, their effects and their limitations in managing risk and alleviating the financial consequences of disaster.
Every dollar spent on hurricane protection can prevent US$105 in business property loss and disruption, according to analysis by FM Global of 1,800 client records over the past decade. To arrive at this figure, FM Global tallied an estimate for over 10,000 wind and flood related investments and their associated reduction in property loss and business disruption exposure for 1,800 clients around the world from 2008 to 2017. These estimates are calculated based on actual losses that have occurred at tens of thousands of properties covered by the insurer.
Acord has partnered with DataPro to produce software aimed at streamlining data standards implementation. DataPro provides solutions for insurance broking within the London Market including quotations, risk placements, binding, endorsements and claims.
DWF has been reappointed to Insurance London Consortium's legal service panel, which will see the business deliver legal services to seven of the Consortium's local authority members over a five-year period. DWF is one of just five law firms appointed to ILC's panel and has been retained for legal services in relation to the management of litigated insurance claims, including industrial disease, general employer liability, housing liability and human rights. The DWF team advising ILC is led by Partner and head of casualty and occupational health team in London Mark Whittaker, alongside London-based insurance director John Palmer.
A study measuring perceptions of reputation among the world’s largest countries (by GDP) has identified the top ten most reputable amongst them. Based on more than 58,000 individual ratings among the general public across the G8 economies, the Reputation Institute’s evaluation, carried out during the first quarter of 2018, looked at how perceptions of reputation drive underlying stakeholder behaviour on key measures such as the willingness to visit, live in, work in, invest in and study in these countries.
The British Insurance Brokers’ Association is to work with the Financial Conduct Authority in a drive to improve access for customers with PEMCs to specialist travel insurance providers. BIBA’s commitment follows the publication of the FCA’s feedback on its Call for Input on Access to Insurance. The FCA paper noted that BIBA already runs a successful Find-A-Broker Service with around 100 BIBA members who are specialists in cover for PEMCs, and which received more than 550,000 enquiries last year, including this type of enquiry.
In its latest full year update to the annual benchmark, JLT noted that the average policy limit for deals outside North America continued to rise, representing 28% of the deal size in 2017 as compared to 25% in 2016 and 22% in 2015. During the same period, premium rates as a percentage of the limit purchased dropped from 1.87% in 2015 to 1.35% in 2016 to 1.15% in 2017. This indicates that, on average, W&I insurance policies in transactions were 15% cheaper last year than in 2016 and 39% cheaper than two years ago.
The deadline for the 2018 Risk Management Awards is just three weeks away. Now in their ninth 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.
With the World Cup in full swing, a shortage in the supply of CO2 is threatening to impact pubs at arguably their busiest time of the year. According to the British Beer and Pub Association, the shortage may already have impacted beer producers.
Organisations are keenly aware of the increasing threat of crises, yet many may overestimate their capabilities to respond. This is among the conclusions of Deloitte's latest crisis management survey, which found that 60% of organisations face more crises today than they did ten years ago.
A new edition of ISO 22000 on food safety management systems has been published. With over two hundred diseases spread through the food chain, and globalisation of the food trade, food production continues to pose a challenge --with food safety and product recall rarely far from the headlines.
Companies sending staff to Russia during the World Cup are being warned to carry out due diligence, to counter the increased risks that the tournament may bring. Insurance and assistance provider Collinson suggests companies sending employees to Russia throughout the coming weeks consider the key issues of crime, civil unrest, cyber security, terrorism and travel security.
A majority of executives around the world feel their organisations can do better when it comes to learning from their past cyber mistakes, according to the results of a newly released global survey conducted by The Economist Intelligence Unit (EIU) and Willis Towers Watson.
European risk management association FERMA has welcomed the appointment by the European Commission of experts for the High Level Group on Artificial Intelligence (AI HLG) and calls for urgent attention to two priorities for European business.
Ventiv has introduced a data governance module to help risk managers and insurance organisations comply with data privacy laws and still perform effective data analytics. With the new module, users can process personally identifiable data from European ‘data subjects’ and still adhere to the regulations. Ventiv’s RiskConsole software now incorporates record anonymisation, data retention periods, record deletion and data locking.
The UK P&I Club has today launched its ‘Investing in a Safer Tomorrow’ competition, to coincide with its 150th anniversary. The competition, which has a prize fund of US$50,000, challenges students and those embarking on a maritime career both at sea and on shore to develop innovative, industry changing ideas with a focus on improving safety at sea.
The National Cyber Security Centre (NCSC) has published advice for organisations on implementing multi-factor authentication (MFA) to protect against password guessing and theft on online services. The NCSC says uptake of multi-factor authentication has been slow and this needs to change. This new guidance, made available today, describes how to use MFA to mitigate against password guessing and theft, including brute force attacks.
Dixons Carphone has this week confirmed the unauthorised access of its data. The company admitted to two breaches involving details of 5.9 million payment cards and 1.2 million personal data records, including addresses. The company said in a statement there is no evidence to date of any fraudulent use of the data as result of these incidents.
Argo Construction will provide contractors with project-specific and ongoing coverage, including general liability and excess casualty. The group will provide excess and liability coverage for owner’s interest in construction projects. The team will also offer affiliated coverage, including professional liability, cyber, environmental, contractors’ equipment and builders’ risk. Argo Construction will begin expanding nationwide, with a focus on companies with more than US$25 million in revenue.
Analysis of over 2,500 companies, carried out by Allianz Global Corporate & Specialty (AGCS), finds oil and gas, mining, food and beverage and transportation at greatest risk of exposure; assessing dependency and managing its impact is of increasing importance for these organisations, the insurer says.
CFC has launched its first insurance solution for financial institutions. The new Investment Management Insurance (IMI) policy is the first in a suite of products designed to address the challenging risk environment faced by investment managers. IMI brings together the traditional cover that investment managers require with comprehensive cover for emerging risks including cyber and kidnap and ransom.
Evidence of the impact of climate risk is found across all sectors, geographies, and seasons, according to a study carried out by S&P Global Ratings. The average materiality on earnings for the small number of companies that quantified it is a significant 6%.
New technologies could lead to significant improvements in efficiency including enhanced monitoring, mitigation and management of engineering-related risks. But they bring with them new risks such as cyber. Global engineering insurance premiums for 2017 were estimated at around US$21bn, but have stagnated in recent years according to the latest sigma study from the Swiss Re Institute.
Cyber and IT-related risks have been confirmed as the top concerns for Airmic members, according to the association's latest survey. It is also the area where risk managers most want to see the insurance industry extend its offering.
The need for businesses to have a single individual overseeing all aspects of risk is greater than ever, says a new report from Airmic. The association, whose annual conference is taking place in Liverpool this week, acknowledges that not all firms require chief risk officers or their equivalent, but says complex or very large businesses would nearly all benefit from having one person overseeing risk.
Lloyd’s Lab, the global insurance market’s new innovation sandbox, is today launching a global search for tech talent to partner with the Lloyd’s market and develop solutions for its unique and rapidly changing needs, in a fast-track, fast-fail environment.
Boards need to reappraise approaches to risk management to take full advantage of the opportunities presented by the digital age, according to a new Airmic/Cass Business School report. It advises that the risks associated with digital transformation can be addressed effectively given the right approach, and it recommends a way forward based on adapting and adding to principles of resilience that have proved effective in the past.
The commercial insurance sector and its customers must face up to the realities of the fourth industrial revolution if it is to remain relevant in five and ten years’ time, Airmic CEO John Ludlow warned today. Rapidly changing business models and the advent of digital technologies are creating completely new risk landscapes, he said, and are also creating unprecedented opportunities and challenges for both insurers and risk managers.
The winners of the 20th annual Business Continuity Awards have been revealed at a Gala Dinner and Ceremony in London's Mayfair. This year's Lifetime Achievement award was presented to Steve Mellish, while the Business Continuity Manager of the Year gong went to Nicky Russell of RBS. More...
Fiducia has extended its product range with the launch of a new Combined Liability Insurance specifically for hauliers and warehouse keepers. Underwriter David Heeney said there were a number of reasons the Leeds based MGA sought to offer the cover.
Insurers should consider carefully whether current policy limits and sub-limits are appropriate for the reality of new exposures under the General Data Protection Regulation, now in force. The International Underwriting Association explores the topic further in a new guide, and warns that GDPR raises the possibility of a potential increase in insurance claims for data breaches.
RSA has received licence approval for its new subsidiary in Luxembourg from local regulator, the Commissariat aux Assurances (CAA). The new subsidiary has been established in preparation for the UK’s exit from the European Union. Existing EU branch business of RSAI PLC will be transferred to RSA Luxembourg (RSAL) by way of a Part VII Transfer and then directly onto the RSAL licence from 1st January 2019.
The first blockchain transaction for marine insurance is to be delivered by Willis Towers Watson along with partner with EY, A.P. Møller-Maersk, XL Catlin, MS Amlin, ACORD and Microsoft. The technology will support more than half a million automated blockchain transactions and help manage risk for more than 1,000 commercial vessels in the first year. By connecting participants in a secure, private network with an accurate, immutable audit trail and services to execute processes, the platform establishes a first of its kind digital insurance value chain.
The Financial Conduct Authority (FCA) has published draft rules outlining how it proposes to authorise and supervise claims management companies when it takes over the task in April 2019. Amongst the new requirements are that firms to hold capital linked to the type of business they undertake, plus a stipulation that they protect any money held on behalf of clients.
Unlicensed software accounted for a fifth of software installed on computers in the UK in 2017, according to the research conducted by software association, the BSA. Its 2018 Global Software Survey further found that half of CIOs list lowering security risks as the top reason for the reduction of unlicensed software use. Some 46% cited loss of corporate/personal data as their top concern about malware effects from unlicensed software.
BIBA has urged the government to expedite the Bill that will allow Pool Re to extend its terrorism insurance scheme to include non-damage business interruption insurance, as announced by Economic Secretary to the Treasury, John Glen earlier this year.
The effects of the recent Beast from the East have exposed just how vulnerable some parts of our highways infrastructure can be to extreme weather conditions. Highways claims continue to be a key risk area and having a robust claims management approach to highways claims is essential to any local authority risk manager.
Markel UK has re launched its flagship legal services firm, Markel Law, which offers legal advice on a range of business critical areas including business and commercial, employment, disputes, professional discipline, regulatory, care services and health and safety issues.
NTT Security is expanding its suite of phishing attack simulation services with the use of social engineering techniques to check the security risk posed by senior executives.
The Management Hack service is specifically designed with C-level executives in mind, as their access to confidential company data makes them a valuable target for hackers. Senior executives also benefit from special privileges, with security policies or standards suspended or relaxed for example to simplify login.
A worsening of the global trade environment in the coming months, due to a surge in protectionism, could have severe repercussions in Asia-Pacific, according to an Atradius report. Some 45% of the exporters surveyed in the region expect their turnover to decline 10% to 20% due to uncertainty over and changes in trade agreements. These are results of the latest Atradius Payment Practices Barometer for Asia Pacific.
In the wake of the Cambridge Analytica scandal, Mark Zuckerberg said ‘…we need to take a broader view of our responsibility… That we’re not just building tools, but that we need to take full responsibility for the outcomes of how people use those tools as well.” So what does this mean?
As the micro and macro business environment changes, risk managers should be increasingly aware of the way risks are mitigated and if, after a crisis, how customers/suppliers and the board can ensure they are better prepared next time.
Specialist global insurer Hiscox has boosted its cyber and data insurance product with a range of new extensions, including dependent businesses interruption, which covers losses arising from a third party supplier suffering a service outage; and system failure, which covers a business interruption loss caused by an outage to the insured’s own IT network that is not as a result of a data breach or cyber attack. And in addition to losses arising from a system hack, businesses will now be covered for an employee inadvertently sending funds or goods on the back of a fraudulent email.
Aon has announced the launch of an initiative to address the weather and climate risks faced by governments and businesses. The firm’s newly created Aon Weather & Climate Risk Innovation network will assist clients in meeting demands to evaluate the potential impact of climate risk and weather on their operations, and develop comprehensive risk financing strategies to improve resilience.
General Data Protection Regulation (GDPR) comes into effect today, following a significant period of awareness of the potential misuse of personal data this year. RIsk management association, FERMA is stressing that the issue is part of a continuing risk management process.
Staff at the UK’s biggest summer events are to be trained in how to react in the event of a terrorist incident as part of Counter Terrorism Policing’s second annual Summer Security campaign. Launched for the first time last year in response to the terrorist attacks in both London and Manchester, the programme has already delivered advice and training to thousands of festival workers, staff and security guards across the UK.
A further surge in data breach and other security failure insurance claims is expected after the EU General Data Protection Regulations (GDPR) come into force this week. A record breaking year in 2017 had as many cyber claim notifications as in the previous four years combined, the equivalent of one per working day, according to research from AIG Europe.
The Chartered Insurance Institute’s Underwriting Faculty has published its latest ‘Underwriter of the Future’ report. Appearing six years after the first was published, the new version reviews the projections from 2012 at the halfway point of the journey to 2022. On changing distribution in SME insurance, the report finds progress towards direct and online distribution for micro and small risks. For the larger SMEs, person-to-person relationships still predominate, but the economics of the traditional branch-based model continue to deteriorate.
We are all connected. Mobile connectivity has eroded boundaries and digitisation is bringing about a major transformation in the way we live and work. The digital age has already begun to affect human and business relationships; the ‘fourth industrial revolution’ is well underway and it’s a party to which everyone is invited.
Lean Six Sigma is based on a set of principles: focus on the customer; identify and understand how the work gets done; manage, improve and smooth the process flow; remove non-value-add steps and waste; manage by fact and reduce variation; involve and equip people in the process; undertake improvement activity in a systematic way. These principles are drawn upon throughout Wiley’s latest book on the topic.
To lose US$27bn from the value of your company in one day is extraordinary by anyone’s standards. For Mark Zuckerberg, who owns 60% of Facebook, although the figure has fluctuated, at one stage this meant a personal hit of US$16bn. Yet the issues that brought about the company’s reputational dive and the serious long-term damage it is likely to cause were all eminently foreseeable. The greater regulation, tighter controls on the use of data, more careful choice of business partners and higher ethical standards promised by Zuckerberg in the wake of the crisis could and should have been put in place long ago – not as a panic measure in response to the flight of advertisers. Instead of having a crisis plan in place, the response appears to have been fragmented and ad hoc. The same tendency can be seen in a number of other recent high-tech road crashes at companies that grew with breathtaking speed.
Castel Specialty has expanded its portfolio with the launch of Castel Political Risk. Led by Tom White, Castel Political Risk will primarily underwrite contract frustration and political risk coverages, typically focusing on business in Latin America, the Middle East and Africa. White was previously senior underwriter at ANV, now AMTrust, where he helped to establish its political risk book. Prior to this he was political risk underwriter at Liberty Syndicates and spent a number of years at Willis Towers Watson, also within its political risk team.
A new report from the Corporate Human Rights Benchmark (CHRB) underlines the importance of corporate management of human rights and reveals that there are signs of improvement – with benchmarks, civil society and investor pressure helping to create a 'race to the top'.
Law firm Clyde & Co has devised a new process which capitalises on the previously little-used Section 57 of the Criminal Justice Act to ensure exaggerated personal injury claims are dismissed before coming to trial.
The firm has successfully used the process to have 18 cases dismissed or discontinued in 2017/18, generating savings of £2.2m, excluding recoveries from dishonest claimants which totalled a further £80,000. The time taken to manage these litigated large loss cases was reduced to 12 months.
With one week to go until the deadline for GDPR, some readers may find the ICO's self assessment toolkit of use. The ICO says is will be most helpful to small to medium sized organisations from the private, public and third sectors. Use these checklists to assess your compliance with data protection law and find out what you need to do to make sure you are keeping people’s personal data secure. Once you have completed each self assessment checklist a short report will be created suggesting practical actions you can take and providing links to additional guidance you could read that will help you improve your data protection compliance.
As most readers will by now be aware, the General Data Protection Regulation (GDPR) comes into effect this month. The run up to the deadline has seen a flurry of activity as businesses have rushed to prepare for the EU’s latest data protection rules. With fines for non-compliance of up to £20m or 4% of global revenue, the new laws predominantly impact how businesses manage personal information belonging to their employees and customers.
Issues surrounding the burden of regulation are critical to those the Financial Conduct Authority (FCA) regulates and BIBA has asked the Treasury Select Committee to raise these issues. Chair of the Treasury Select Committee, Nicky Morgan, said “The Treasury Select Committee quizzes senior officials from the FCA several times a year so the issue of the burden of regulation is very alive to those the FCA regulates and they will ask the Treasury Select Committee to raise these issues.”
Concerns have been raised over Judith Hackitt's review of building regulations following the Grenfell Tower Fire in June 2017. Reports that the review is unlikely to put an outright ban on flammable cladding or desktop assessments is unlikely to drastically improve the UK’s position when it comes to fire resilience.
With a week to go until the GDPR comes into effect, a new report suggests some 85% of firms in Europe and the United States will not be ready on time. It goes on to suggest that one in four will not even be compliant by the end of the year.
As its annual conference in Manchester gets underway, so too does the British Insurance Brokers’ Association (BIBA) all-day Hackathon as part of which eight teams made up of insurers, brokers, data and tech firms will vie with one another to find solutions to key issues affecting insurance brokers and their customers.
The Chartered Insurance Institute (CII) has launched its Aspire Apprenticeship Programmes. Employers across the insurance sector have expressed a need for quality-assured apprenticeship training programmes that are accessible, relevant and offer a solution to access available funding for businesses of all sizes.
Credit risk insurance policies could become more expensive and less readily available if proposed new regulatory changes are pursued, the International Underwriting Association (IUA) has warned. It went as far as to say planned reforms could cause some London Market insurers to conclude the product is no longer viable, creating considerable issues for bank lending.
Carillion's directors presided over a "rotten corporate culture" two committees of MPs have concluded, and have called for the break-up of the big four audit firms, all engaged at some level in the company and its demise. Carillion, a company that collapsed with GBP 1.5bn debt, had employed 43,000 people, and had many constructive ESG and education programmes. But it was the delivery of major public projects that was its undoing, as it underbid in order to win the contracts and its directors failed to anticipate or avoid the financial strain.
Fusion Risk Management has launched a cloud-based managed solution designed to help crisis management, business continuity and disaster recovery professionals connect its system with OnSolve's Send Word Now notification system.
The specialist insurance provider behind BIBA’s cyber insurance scheme, CFC, will be launching its new BIBA Cyber Guide at BIBA’s annual conference and exhibition in Manchester this week.
Significant numbers of UK consumers are failing to take the most basic online precautions according to new research from DAS UK Group and HSB Engineering Insurance. Although 88% of consumers claim to be confident when dealing with cyber security, they appear to be in denial with regards to protecting themselves. Nearly a quarter are failing to take even basic – and well-known – precautions such as using anti-virus software (23%) or ‘strong’ passwords (24%).
Rolls-Royce and AXA Corporate Solutions have signed a letter of intent to explore ways in which they can combine the Rolls-Royce Ship Intelligence systems with AXA’s risk analytics capabilities to support current sailing and future vessels. Rolls-Royce Ship Intelligence products, including the recently launched Intelligent Awareness product, use a wide array of on-board sensors, streaming data, allowing AXA Corporate Solutions to deliver a new level of service to marine vessels.
Lloyd’s of London is to direct underwriters to terminate all insurance connected to the National Rifle Association of America.
A statement from the insurance market said: “The Lloyd’s Corporation has given very careful consideration as to whether syndicates at Lloyd’s should continue to insure programs offered, marketed, endorsed or otherwise made available through the National Rifle Association of America (NRA).
Gallagher has announced the acquisition of regional commercial insurance broker Risk Services (NW) based in Chester. Terms of the transaction have not been disclosed.
Established in 1999 by managing director Steve Lowe, Risk Services has provided insurance services to corporate and commercial clients, growing organically and through acquisition to become one of the largest independent insurance brokers in Chester, North Wales and the surrounding area.
The use of the nerve agent Novichok in a recent attack against former Russian spy Sergei Skripal and his daughter Yulia in Salisbury has exposed a gap in coverage in most business interruption insurance policies, the UK's terrorism reinsurer Pool Re has warned.
Airmic is launching a new ERM Special Interest Group (SIG) in the autumn, reflecting the association’s ambition to develop a stronger presence in wider risk management.
Julia Graham, technical director of Airmic, said: “Our members tell us that over 70% of them have a responsibility for risk management in their organisations.
Kroll has launched a new division providing consultancy services aimed at those responsible for ensuring compliance with GDPR. The Data Protection Officer (DPO) Consultancy Services division is an expansion of Kroll’s global Cyber Security and Investigations offering and are being provided in collaboration with a number of data privacy law firms.
RSA has relaunched its risk management software portal to provide greater visibility and control over property and casualty risks for customers, brokers and RSA underwriters and enabling users to benchmark these risks against comparable exposures across the same sector.
Only 6 in 10 company directors say they are confident their organisation will be ‘fully compliant’ with new data protection laws set to come in later this month, according to a new survey from the Institute of Directors.
The Allianz Group has expanded its climate strategy with moves to phase out investments in, and insurance cover for, coal-based businesses. By 2040, in a step by step process, the company says it will have phased out both its proprietary investments in coal-based business and its insurance coverage of such risks, as well as a reduction in its own carbon footprint.
Wearable technology that monitors staff could be a double-edged sword for employers, according to law firm Clyde & Co, which says that as the number of businesses deploying monitoring technology rises, so too do the issues of data management and claims. The law firm is warning that the growing volume of data on employee performance and health held by employers could be subject to full disclosure during a legal action against the business. It can be compared to footage from CCTV or telematics data, which is already being used in court.
Digital technologies such as robotics, mobile and social media, the internet of things, artificial intelligence and big data analytics are transforming the global economy and bringing an increase in productivity for the majority of companies according to a new report, but is also increasing the gap between the world’s biggest and smallest businesses.
QBE Insurance Group is turning to artificial intelligence (AI) to enhance its global operations. The firm has partnered with machine learning company HyperScience, entering into a multi-year commercial use agreement to roll out its solutions across the insurance business.
The average cost of cyber breaches affecting medium sized businesses has quadrupled in the last two years according to a new government survey. The Cyber Security Breaches Survey 2018 carried out by Ipsos MORI on behalf of the Department for Culture, Media and Sport, found that the estimated total cost of cyber breaches has increased from £1,860 in 2016 to £3,070 in 2017 and £8,180 in 2018, even in cases where breaches that do not result in lost assets or data – an increase of over 400% in two years.
The worldwide cyber security skills gap continues to present a significant challenge for companies globally, with 59% of information security professionals reporting unfilled cyber or information security positions within their organisation, according to research from ISACA. The results are of particular concern when the prevalence of cyber attack is so high; half of those polled said their organisation haf already experienced an increase in attacks over the previous 12 months.
With 23 days until GDPR comes into force, credit reference agency Equifax is urging businesses to engage with their suppliers urgently. It says for any businesses using credit reference agency services – whether credit checking or identity verification, steps must be taken to ensure continuity of service. Data protection officer at Equifax, Steve Martin, says any businesses that share credit data that haven’t yet engaged with their CRA must do so as a matter of urgency, as it’s essential that they direct customers and prospective customers to the right information on how their data will be shared with and used by CRAs.
The shortage of affordable homes to buy and rent in the capital is crippling firms’ ability to recruit and retain staff, according to the latest CBI/CBRE London Business Survey.
Two thirds (66%) of the 176 respondents to the London Business Survey said that housing costs and availability are having a negative impact on the recruitment of entry-level staff. Compared with 57% when this question was last asked in September 2015, this latest figure is a survey record high.
Airmic has a produced a new guide for buyers of D&O insurance to reflect changes in the business environment since the previous one was published in 2012. In the intervening period regulatory demands on companies have grown both in the UK and internationally, whilst new exposures caused by developments such as cyber risk, data protection laws and gender pay gap reporting have added an extra dimension to the type of cover required.
Operational loss events can have significant impact on the market value of insurers. The operational risk management framework of an insurer, which will include risk appetite setting and risk modelling, should provide direct input to decision making in respect of how much risk to transfer and what insurance coverage is required. Firms should also be able to take proper credit for robust insurance coverage when modelling exposure for regulatory purposes, providing a capital benefit.
Over 40 companies have pledged to cut plastic pollution over the next seven years, with Procter & Gamble, Asda, Tesco, Nestlé, Coca-Cola and Marks & Spencer among those signing up to make 100% of plastic packaging ready for recycling or composting by 2025.
A Lloyd’s Market Association report has found that in most classes covering physical damage losses, malicious and/or non-malicious cyber incidents were found to be excluded, although there were some examples of limited write-backs for existing perils. The review by class of non-affirmative and affirmative coverage and commonly used exclusions found that in non-marine liability classes, including professional lines, cover is provided for a wide range of legal liabilities, however they arise, with few exclusions.
The way in which online underwriting platforms are designed and operated can have a major impact on an insurer’s ability to defend itself in court, according to law firm Clyde & Co. In particular, it singled out the arrival of the Insurance Act on the statue books as a reason to review underwriting platforms with particular focus on the manner in which documentation is issued and information on a risk is collected.
Ransomware attacks jumped in malware detections last year, up 350% from just 1 per cent in 2016 to 7% in 2017 at a global level. In EMEA, however, ransomware was the main type of malware representing nearly one third (29%) of all attacks in the region. At the other end of the scale, spyware and key loggers made up just 3% of malware in EMEA, in contrast to 26% globally.
Lloyd’s has begun hiring staff for its Brussels subsidiary. There will be a number of vacancies across finance, operations, compliance, HR and underwriting. The decision to create an insurance company in Brussels is part of the insurance market’s Brexit contingency plan and Lloyd’s Brussels will have 19 branches throughout Europe, including the UK, and will be authorised and regulated by the National Bank of Belgium, and capitalised according to Solvency II rules.
Quite a number of companies that I speak to tell me that their business continuity plan is to send everyone home and ask them to work from there in the event of an incident. For all companies these days, even regulated ones, a significant proportion of their staff can quite happily work from home. However, a core of the business still needs to work closely (physically) together. This is most often the crisis management team and core business functions and generally works out to be around 10% of staff, depending on the industry.
Insurance companies and brokers from the Lloyd’s and London insurance markets have committed to funding a London Market Line Slip to secure the long-term future of St. Ethelburga’s Centre for Reconciliation & Peace. Charitable subscriptions are being sought from London market re/insurers, brokers and service providers, with a fundraising target of £1m as part of the commemoration of the 25th anniversary of the IRA Bishopsgate bombing.
Lloyd’s has today announced the appointment of L Marks and The Boston Consulting Group (BCG) to support the set up and operation of the Lloyd’s Lab, which is being set up to focus on designing technology specifically for the Lloyd’s market.
Beazley has partnered with law firm DAC Beachcroft to launch a General Data Protection Regulation (GDPR) helpline for its Beazley Breach Response (BBR) policyholders in the UK. Once GDPR is implemented on 25 May 2018, organisations worldwide could face increased exposure to privacy and data breach liability risks. Organisations in the EU that process personal data, and those outside the EU that offer goods and services to EU citizens or monitor their behaviour, will fall within the ambit of the new regulations, the effects of which are still not well understood
Some 57% of global organisations do not have appropriate visibility of subcontractors engaged by their third parties, according to a new survey from Deloitte. A further 21% are unsure of oversight practices, and fewer still (2%) routinely review the risk subcontractors pose to their organisation. Reliance on third parties, meanwhile, continues to grow.
Complaints about payment protection insurance (PPI) drove a 13% increase in the number of complaints made to financial services firms in the second half of 2017, according to figures published this week by the FCA. During the second half of 2017 a total of 3.76 million complaints were received, an increase of 427,032 on the first half of the year. Complaints about PPI rose by 40% to 1.55 million, the highest level of complaints about PPI for more than four years.
Trustwave has unveiled a new cybersecurity consulting practice. Through the new Detection, Analytics and Response Consulting (DARC) practice, Trustwave partners with enterprises tailoring an approach to plan, build and optimise threat detection and response operations.
Ventiv has announced the launch of Ventiv RPA, a tool which has been created specifically to meet the needs of the risk and insurance, claims administration, and safety management industries. It integrates with all Ventiv solutions and virtually all applications including websites, email systems, word-processing applications, PDF readers, spreadsheets, and specialised legacy systems, like policy systems.
AIG has announced the authorisation of two new insurance companies in the UK and Luxembourg, to which all business will be transferred ahead of the UK leaving the European Union, as part of its planned European restructure. The insurer began active preparation to be “Brexit-resilient” in 2015, a process which involves the transfer of AIG Europe Limited’s existing insurance business to the new companies and the merger of its existing carrier, AIG Europe Limited into the new European company.
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. Funded by the government, the new initiative has been launched to promote stronger trade amongst Commonwealth states.
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.
The Public Account Committee’s report into the NHS’s response to last year’s WannaCry cyber attacks was published today. The NHS was attacked in May 2017 by ransomware that disrupted at least 34% of trusts in England. 37 trusts were locked out of devices, whilst a further 44 were not infected but experienced disruption. A further 603 NHS organisations were infected, including 595 GP practices. This resulted in the cancellation of 6,912 appointments and operations, and in five areas patients had to travel further to access A&E services.
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 which showed that eight of the 11 principal countries which supply key raw materials for electric vehicle 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, Fusion, PlanB Consulting and Sungard Availability Services and Yudu.
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.
The government is investing £150 million over the next three years in an attempt to improve the NHS’s resilience to cyber attacks. Part of the investment will see a new digital security operations centre instigated to prevent, detect and respond to incidents. The centre is intended to help NHS Digital to respond to cyber attacks more quickly and allow local trusts to detect threats, isolate infected machines and stamp out a threat before it spreads.
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.